ILNews

Bankruptcy delays collection effort

Back to TopCommentsE-mailPrintBookmark and Share
Indiana Lawyer Rehearing

Former East Chicago Mayor Robert Pastrick has filed for bankruptcy, putting on hold the state’s attempt to seize his property to help pay off the $108 million he owes from a civil racketeering default judgment against him.

On Dec. 17, the former mayor filed a notice for Chapter 7 bankruptcy, just one day after the state AG obtained a writ of execution allowing federal marshals to seize his home and property in northern Indiana. U.S. Magistrate Judge Christopher Nuechterlein in Hammond had granted a request for the seizure of personal property, art, bonds, and jewelry, but he withdrew that writ following the bankruptcy filing.

This is the latest development in a long-standing case against the former mayor and other East Chicago officials, who were a part of a sidewalks-for-votes fraud scheme that involved the use of $24 million in city money to pave patios, sidewalks, driveways, and remove trees in exchange for 1999 primary votes. Pastrick and two former top aides were found guilty last year of running a corrupt enterprise under federal racketeering statutes, and a federal judge in March ordered a default judgment totaling more than $108 million.

In his bankruptcy filing, Pastrick says his assets are valued from $100,000 to $500,000 and his debt is more than $100 million. The only creditors he lists are the Indiana Attorney General’s Office and the Indianapolis law firm of Rubin & Levin that’s representing the state in its case against Pastrick.

Indiana Attorney General Greg Zoeller contends the judgment should not be dischargeable in bankruptcy and that this is just another attempt by Pastrick to avoid accountability and stall the collection process.

A meeting of Pastrick creditors is scheduled for Jan. 25, according to the federal court docket.

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
ADVERTISEMENT