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Attorneys to get big cut of $300K OmniSource settlement

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An OmniSource executive says the company wouldn't have made the settlement with the Marion County prosecutor if it knew more than a third of the cash wouldn't be going to Indianapolis police for training programs.

When Marion County Prosecutor Terry Curry announced he was dropping criminal and civil charges against scrap-metal recycling firm OmniSource Inc., he said the company had agreed to make a $300,000 contribution, as a show of good faith, to fund law enforcement training programs.

In reality, the funds are being processed like any other civil forfeiture involving an illegal business enterprise, and less than $200,000 of the settlement cash will actually make it to the Indianapolis Metropolitan Police Department.

First in line to be paid: Contingent-fee private attorneys Greg Garrison, who filed the initial civil forfeiture case while under contract with former Prosecutor Carl Brizzi, and Mark K. Sullivan, an outside attorney brought on by Curry as Garrison's co-counsel. The pair will split 15 percent of the settlement, or $45,000, plus filing fees.

The remaining $255,000 will be split, with 20 percent going to the prosecutor's office, 75 percent going to IMPD, and 5 percent for a joint fund administered by the prosecutor and director of public safety, said Chief Deputy Prosecutor David Rimstidt.

The total going to IMPD, about $191,250, does not sit well with OmniSource officials.

The company would not have agreed to the deal if they knew the settlement would pay an "ounce of tribute to this scurrilous investigation," said Ben Eisbart, a vice president at Fort Wayne-based Steel Dynamics Inc., OmniSource's parent company.

OmniSource intended the "donation" to be used for law enforcement programs, including training on how to prevent scrap-metal theft, an extension of the company's own more-than-$1 million investment in anti-theft measures at its five local scrap yards, Eisbart said.

"The citizens of Indianapolis will be infinitely better served by having well-trained individuals than by paying some lawyers," he said. "We're beside ourselves. We want to meet with the prosecutor to find out where it went off the track. This was never about money."

The $300,000 roughly matches the amount of cash authorities seized from local OmniSource scrap yards in 2009, after a year-long investigation into the company's alleged purchases of stolen cars, boats, gutters and wiring.

A Marion County grand jury returned a 16-page indictment against OmniSource in October 2010, charging the company with three counts of corrupt business influence and five counts of attempted receipt of stolen property.

There was plenty of evidence to prove employees of OmniSource bought stolen property, Curry said. The problem was proving employees knew the metal had been stolen. And after a judge threw out the corrupt business influence charge, that left just five counts of attempted stolen property.

Curry said he decided against investing the resources in pursuing the charges that at most would result in a fine of $10,000 per count and no jail time for anyone. The seized cash will be returned to OmniSource, which will then make its $300,000 contribution.

"It's fair to say there was a negotiation on all the terms of the ultimate agreement," Curry said. "We will process it as a civil forfeiture."

The prosecutor's office is no longer using outside contingent-fee attorneys to handle civil forfeitures, Curry noted, though he said he had no choice but to honor the prior agreement between Brizzi and Garrison.

Even though Garrison stands to collect a cut of the settlement, he said he was livid when he heard Curry would be dropping the charges.

In his forfeiture filing against OmniSource of behalf of Brizzi, Garrison wrote that the company buys millions of dollars worth of stolen metal per year as its “regular way of doing business” and operates in a similar fashion all over the state.

"Letting those guys go in the face of the powerful evidence that supported both the criminal and civil cases is inconceivable to me," Garrison wrote in an e-mail to Indianapolis Business Journal on Thursday. "Damn."

OmniSource had described the civil suit, which sought the forfeiture of five Indianapolis-area scrap yards and a foundry facility in Hendricks County, as part of a plan by Brizzi and Garrison to “extract money” under threat of civil forfeiture. Garrison filed the case during Brizzi's last week as prosecutor.

This story originally ran in the July 15, 2011, IBJ Daily. The IBJ is a sister pubilcation of Indiana Lawyer.
 

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  1. How nice, on the day of my car accident on the way to work at the Indiana Supreme Court. Unlike the others, I did not steal any money or do ANYTHING unethical whatsoever. I am suing the Indiana Supreme Court and appealed the failure of the district court in SDIN to protect me. I am suing the federal judge because she failed to protect me and her abandonment of jurisdiction leaves her open to lawsuits because she stripped herself of immunity. I am a candidate for Indiana Supreme Court justice, and they imposed just enough sanction so that I am made ineligible. I am asking the 7th Circuit to remove all of them and appoint me as the new Chief Justice of Indiana. That's what they get for dishonoring my sacrifice and and violating the ADA in about 50 different ways.

  2. Can anyone please help this mother and child? We can all discuss the mother's rights, child's rights when this court only considered the father's rights. It is actually scarey to think a man like this even being a father period with custody of this child. I don't believe any of his other children would have anything good to say about him being their father! How many people are afraid to say anything or try to help because they are afraid of Carl. He's a bully and that his how he gets his way. Please someone help this mother and child. There has to be someone that has the heart and the means to help this family.

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  4. Ok, so cheap laughs made about the Christian Right. hardiharhar ... All kidding aside, it is Mohammad's followers who you should be seeking divine protection from. Allahu Akbar But progressives are in denial about that, even as Europe crumbles.

  5. Father's rights? What about a mothers rights? A child's rights? Taking a child from the custody of the mother for political reasons! A miscarriage of justice! What about the welfare of the child? Has anyone considered parent alienation, the father can't erase the mother from the child's life. This child loves the mother and the home in Wisconsin, friends, school and family. It is apparent the father hates his ex-wife more than he loves his child! I hope there will be a Guardian Ad Litem, who will spend time with and get to know the child, BEFORE being brainwashed by the father. This is not just a child! A little person with rights and real needs, a stable home and a parent that cares enough to let this child at least finish the school year, where she is happy and comfortable! Where is the justice?

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