ILNews

Bales trial in jury's hands after colorful closings

Back to TopCommentsE-mailPrintBookmark and Share

SOUTH BEND — The jury began deliberations Thursday in the federal fraud trial of Indianapolis real estate broker John M. Bales and partner William E. Spencer after three hours of spirited closing arguments Wednesday.

A federal prosecutor and two top-tier Indianapolis defense attorneys representing Bales and Spencer closed their cases with a series of rhetorical flourishes and one-liners designed to stick with jurors as they consider whether the men are guilty of 13 felony charges, including bank, wire and mail fraud.

Previous coverage of the trial and Elkhart lease deal can be found here.

Here's a sample of what the attorneys had to say in U.S. District Court for the Northern District of Indiana:

— "Bales and Spencer decide to make extra money on a state deal, even though it's not allowed, and then hide it."  - Assistant U.S. Attorney Jesse Barrett, summarizing the government's case that the defendants defrauded the state and a bank by secretly taking any ownership interest in an Elkhart building the state later leased. Their company, Venture Real Estate Services, had a state contract that banned direct or indirect ownership in buildings where the firm brokered lease deals.

— "This is a fraud case where the defendant is the single biggest loser." - Bales defense attorney Larry Mackey, arguing both Bales and Spencer ultimately will lose money on their investment in the Elkhart building. He contends Bales put up his own money for a down payment on the building to expedite a move by the state's Department of Child Services out of a crime-plagued former office location.

— "The government is saying the victims here are the state and bank. We're saying the two victims are Mr. Spencer and Mr. Bales." - Spencer attorney Bernard Pylitt.

— "During this trial, I could almost feel Lady Justice looking over us and just shaking her head." - Mackey, just warming up.

— "Keep your eye on the ball, and the ball is Mr. Page, Mr. Page, Mr. Page." - Mackey, referring to Indianapolis attorney Paul J. Page, the deed owner of the Elkhart building, who declined to pony up his own down payment to buy the building.

— "It would have been so easy if there was no intent to cover up to say that 'we gave some money to Paul Page.'" - Barrett, on Venture's missed opportunities to come clean with state officials who questioned Venture's role in the Elkhart deal.

— "I'm going to show you 29 different times John Bales, Bill Spencer or someone at Venture lied to the state or bank about the Elkhart deal." - Barrett, before showing the jury 29 emails and other documents he argued advanced a cover-up.

— "The pathetic proof on the bank fraud tells you a lot about the rest of their case." - Mackey, noting that neither Bales nor Spencer signed for Page's bank loan from Huntington. Page was also charged but agreed in January to plead guilty and cooperate with the government.

— "Two weeks ago, Huntington gave Mr. Bales a car loan." - Mackey, suggested a truly defrauded bank might stop doing business with the one doing the defrauding.

— "I'm going to submit to you Paul Page earned the label." - Mackey, referring to the limited liability company called L&BAB that owned the Elkhart building. Bales used the acronym "lazy and broke-ass bitch" when he formed the company as an "inside joke" smearing Page.

— "Paul Page was the lazy and broken-ass bitch in this deal." - Pylitt.

— "Paul Page is a crook." - Mackey.

— "They knew when they approached him and formed the LLC that he was lazy and broke." - Barrett.

— "We gave you high-tech, now we're going low-tech." - Barrett, eschewing PowerPoint and instead showing the jury giant posters of financial statements Bales and Spencer submitted to another bank as they considered an outright purchase of the Elkhart building from Page in the summer of 2009. (Such a deal, which did not materialize, would have been an unequivocal violation of their state contract.) Both men showed as assets their interest in BAB Equity LLC, which provided the down payment for the Elkhart building. Bales valued his stake at $290,000, and Spencer valued his at $51,350.

— "A grand conspiracy born in the U.S. Attorney's Office." - Mackey, referring to the government's case.

— "At some point, it's not everyone else's fault." - Barrett.

— "You gotta evaluate a witness' credibility. He doesn't deserve any." - Mackey, referring to state leasing director Steve Harless, one of several government witnesses the defense sought to discredit.

— "Go back and guess these guys guilty. That's what the government is asking you do do." - Pylitt, on the lack of a definition of the term "indirect ownership" in Venture's contract with the state.

— "I know you told us none of you are reporters, but you can write tomorrow's headline, and this is what it should be: Not guilty. Not guilty. Not guilty." - Mackey.

— "You can be dumb, stupid and foolish, but that doesn't make you a criminal." - Pylitt, following Mackey in arguing their clients would not have left so many breadcrumbs had they intended to defraud the state or bank.

— "I can't tell you whether Bales or Spencer were smart crooks or stupid crooks." - Barrett.
 

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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

ADVERTISEMENT