Ex-mayor argues $108 million judgment can be discharged in bankruptcy

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The ex-East Chicago mayor hit with a $108 million racketeering judgment because of public corruption wants a federal bankruptcy court to dismiss a civil complaint against him that questions whether the judgment is dischargeable under bankruptcy code.

In a brief filed earlier this week, former mayor Robert Pastrick contends that the Indiana attorney general’s adverse action doesn’t prove that he acted willfully or maliciously as required to make the multi-million dollar judgment nondischargeable.

On March 25, the state agency filed a 22-page complaint against Pastrick in the U.S. Bankruptcy Court for the Northern District of Indiana, alleging that five provisions of the federal bankruptcy law exempt this debt from being eligible for discharge through bankruptcy. This came in response to the 2010 judgment against Pastrick and his former aids, who admitted their roles in a “sidewalk for votes” scheme that funneled $24 million in public money to pay for sidewalks and concrete paving in exchange for votes in the city’s 1999 primary election. The AG’s office has been trying to collect that money for the past year, but Pastrick in December filed for bankruptcy to avoid paying the amount.

In the civil complaint, the AG’s office contends that Pastrick’s theft, abuse of power while in office, and federal racketeering means the $108 million can’t be dismissed through bankruptcy proceedings. The five counts spell out the arguments that the debt shouldn’t be discharged because of Bankruptcy Code sections 523(a)(6), 523(a)(4), 523(a)(7), 523(a)(13), and 523(a)(2)(A).

But Pastrick argues that bankruptcy code requires his conduct have been “willful” or “malicious,” and that isn’t the case here.

“There is a clear distinction between an act that is intentional and an act that is intentional and ‘malicious,’” the brief says. “The Plaintiff’s response did not address this distinction and relies on the findings and suggestion that Defendant’s actions were ‘intentional.’”

Pastrick also argues that he didn’t receive any financial benefit from the alleged activities, and that’s a requirement under bankruptcy code in classifying the debt as nondischargeable. He also points out the judgment was compensatory as well as punitive, and that it doesn’t include any specific restitution order so the debt can be written off.

“The mere allegations or findings of morally repugnant activity does not guarantee that any civil judgment resulting therefrom would qualify as nondischargeable,” Pastrick’s brief says.

How the court decides this issue of dismissal could determine how the underlying bankruptcy case proceeds against Pastrick, and ultimately how the AG’s office is able to pursue collecting the $108 million judgment.


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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.