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East Chicago casino case still alive

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A years-long court battle over millions of dollars in East Chicago casino revenue remains alive after a Marion County judge vacated an earlier dismissal of the civil suit and blocked the release of $8 million in disputed funds that had been part of a settlement.

Marion Superior Judge David Shaheed on Thursday issued the latest decision in City of East Chicago and State of Indiana v. East Chicago Second Century Inc., No. 49D01-0504-PL-014394. He agreed with Indiana Attorney General Greg Zoeller that approximately $8 million in casino-revenue funds should not be released while the litigation is ongoing. He decided July 15 to set aside his earlier ruling in April that had dismissed the suit, because the city and for-profit organization known as Second Century didn’t include the AG in settlement negotiations.

The case dates back more than a decade to the administration of now-convicted former Mayor Robert Pastrick, who set up the casino money and local development agreement with Second Century and similar organizations. But the AG’s office has tried for years to delve deeper into that financial transaction to determine how that money has been spent once received.

In February, Mayor George Pabey announced he had reached a deal with Second Century, a for-profit economic development organization that would redirect $1.5 million in annual casino revenue from Second Century to the city. In return, the city would release its claim to approximately $4 million in payments intended for Second Century that have been delayed since 2005 while the lawsuit was pending.

But Zoeller objected to the settlement because he claims Second Century has not adequately shown how it has spent some $16 million in casino revenue it has received over the years.

The settlement was approved April 8, but Judge Shaheed's latest ruling stops the settlement from proceeding and permits the attorney general to participate in the revived lawsuit.

"From the beginning of the Second Century case, the goal of the Indiana attorney general's office has been to ensure that funds intended to benefit the citizens of East Chicago actually do so," Zoeller said in a statement. "The public needs assurances that these funds are not squandered or diverted back to political cronies or to an administration under investigation for corruption."

Pabey was indicted by federal officials in February on charges he conspired to embezzle city money and unlawfully used city workers for personal projects. His trial is scheduled for September.
 

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  1. OK, now do something about this preverted anacronism

  2. William Hartley prosecutor of Wabash county constantly violates people rights. Withholds statement's, is bias towards certain people. His actions have ruined lives and families. In this county you question him or go out of town for a lawyer,he finds a way to make things worse for you. Unfair,biased and crooked.

  3. why is the State trying to play GOD? Automatic sealing of a record is immoral. People should have the right to decide how to handle a record. the state is playing GOD. I have searched for decades, then you want me to pay someone a huge price to contact my son. THIS is extortion and gestapo control. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW.

  4. I haven't made some of the best choices in the last two years I have been to marion county jail 1 and two on three different occasions each time of release dates I've spent 48 to 72 hours after date of release losing a job being denied my freedom after ordered please help

  5. Out here in Kansas, where I now work as a government attorney, we are nearing the end of a process that could have relevance in this matter: "Senate Bill 45 would allow any adult otherwise able to possess a handgun under state and federal laws to carry that gun concealed as a matter of course without a permit. This move, commonly called constitutional carry, would elevate the state to the same club that Vermont, Arizona, Alaska and Wyoming have joined in the past generation." More reading here: http://www.guns.com/2015/03/18/kansas-house-panel-goes-all-in-on-constitutional-carry-measure/ Time to man up, Hoosiers. (And I do not mean that in a sexist way.)

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