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. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  3. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

  4. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  5. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.