ILNews

Attorneys to get big cut of $300K OmniSource settlement

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. State Farm is sad and filled with woe Edward Rust is no longer CEO He had knowledge, but wasn’t in the know The Board said it was time for him to go All American Girl starred Margaret Cho The Miami Heat coach is nicknamed Spo I hate to paddle but don’t like to row Edward Rust is no longer CEO The Board said it was time for him to go The word souffler is French for blow I love the rain but dislike the snow Ten tosses for a nickel or a penny a throw State Farm is sad and filled with woe Edward Rust is no longer CEO Bambi’s mom was a fawn who became a doe You can’t line up if you don’t get in a row My car isn’t running, “Give me a tow” He had knowledge but wasn’t in the know The Board said it was time for him to go Plant a seed and water it to make it grow Phases of the tide are ebb and flow If you head isn’t hairy you don’t have a fro You can buff your bald head to make it glow State Farm is sad and filled with woe Edward Rust is no longer CEO I like Mike Tyson more than Riddick Bowe A mug of coffee is a cup of joe Call me brother, don’t call me bro When I sing scat I sound like Al Jarreau State Farm is sad and filled with woe The Board said it was time for him to go A former Tigers pitcher was Lerrin LaGrow Ursula Andress was a Bond girl in Dr. No Brian Benben is married to Madeline Stowe Betsy Ross couldn’t knit but she sure could sew He had knowledge but wasn’t in the know Edward Rust is no longer CEO Grand Funk toured with David Allan Coe I said to Shoeless Joe, “Say it ain’t so” Brandon Lee died during the filming of The Crow In 1992 I didn’t vote for Ross Perot State Farm is sad and filled with woe The Board said it was time for him to go A hare is fast and a tortoise is slow The overhead compartment is for luggage to stow Beware from above but look out below I’m gaining momentum, I’ve got big mo He had knowledge but wasn’t in the know Edward Rust is no longer CEO I’ve travelled far but have miles to go My insurance company thinks I’m their ho I’m not their friend but I am their foe Robin Hood had arrows, a quiver and a bow State Farm has a lame duck CEO He had knowledge, but wasn’t in the know The Board said it was time for him to go State Farm is sad and filled with woe

  2. The ADA acts as a tax upon all for the benefit of a few. And, most importantly, the many have no individual say in whether they pay the tax. Those with handicaps suffered in military service should get a pass, but those who are handicapped by accident or birth do NOT deserve that pass. The drivel about "equal access" is spurious because the handicapped HAVE equal access, they just can't effectively use it. That is their problem, not society's. The burden to remediate should be that of those who seek the benefit of some social, constructional, or dimensional change, NOT society generally. Everybody wants to socialize the costs and concentrate the benefits of government intrusion so that they benefit and largely avoid the costs. This simply maintains the constant push to the slop trough, and explains, in part, why the nation is 20 trillion dollars in the hole.

  3. Hey 2 psychs is never enough, since it is statistically unlikely that three will ever agree on anything! New study admits this pseudo science is about as scientifically valid as astrology ... done by via fortune cookie ....John Ioannidis, professor of health research and policy at Stanford University, said the study was impressive and that its results had been eagerly awaited by the scientific community. “Sadly, the picture it paints - a 64% failure rate even among papers published in the best journals in the field - is not very nice about the current status of psychological science in general, and for fields like social psychology it is just devastating,” he said. http://www.theguardian.com/science/2015/aug/27/study-delivers-bleak-verdict-on-validity-of-psychology-experiment-results

  4. Indianapolis Bar Association President John Trimble and I are on the same page, but it is a very large page with plenty of room for others to join us. As my final Res Gestae article will express in more detail in a few days, the Great Recession hastened a fundamental and permanent sea change for the global legal service profession. Every state bar is facing the same existential questions that thrust the medical profession into national healthcare reform debates. The bench, bar, and law schools must comprehensively reconsider how we define the practice of law and what it means to access justice. If the three principals of the legal service profession do not recast the vision of their roles and responsibilities soon, the marketplace will dictate those roles and responsibilities without regard for the public interests that the legal profession professes to serve.

  5. I have met some highly placed bureaucrats who vehemently disagree, Mr. Smith. This is not your father's time in America. Some ideas are just too politically incorrect too allow spoken, says those who watch over us for the good of their concept of order.

ADVERTISEMENT