Feds indict East Chicago mayor, former official

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Another East Chicago mayor is now being charged in the federal court for alleged misuse of public money, and defense attorneys say they'll go to trial to fight the charges.

Acting U.S. Attorney David Capp for the Northern District of Indiana Wednesday filed a grand jury indictment in the Hammond courthouse, charging East Chicago Mayor George Pabey and former city engineering department leader Jose Camacho with conspiring to divert city money and resources toward improving a house that Pabey owns with his daughter in Gary's Miller Beach neighborhood. Camacho is also charged with trying to persuade other city workers to lie to federal investigators about work the laborers allegedly did on the house while they were on the clock for the city, the indictment says.

In the 10-page indictment, prosecutors allege that Pabey used public money to do work on a Gary home bought as a foreclosure in late 2007. The indictment says that between late 2007 and August 2008, a crew of four "skilled laborers" supervised by Camacho worked on the home by pouring concrete, painting, and installing new appliances and furnishings. Camacho's accused of spending more than $5,000 in taxpayer money on materials for the project, and he also drew on an engineering department account. Once FBI agents starting investigating, Camacho told the other workers to either keep quiet or lie to the agents, according to the indictment.

The indictment accuses Pabey of two counts: a conspiracy charge and a charge that specifically accuses him of illegally diverting the city resources. Camacho faces the same charges and two counts of witness tampering.

East Chicago spokesman Damian Rico issued a statement Wednesday, saying the mayor did "nothing improper or illegal," that the allegations are false, and that Pabey has fully cooperated with federal investigators.

"I am shocked beyond expression that these allegations have been made by the government," Pabey said in the statement. "I will not be distracted by this event in continuing to conduct the business of my office on behalf of the people of East Chicago."

Gary attorney Fred Work and Merrillville attorney Scott King, a former Gary mayor, are serving as defense counsel.

U.S. Magistrate Judge Andrew Rodovich set a signature bond at $20,000 for both Pabey and Camacho, and lawyers stated to the media at the courthouse they anticipated going to trial.

Pabey took over as mayor in 2005 after outsting longtime political force Robert Pastrick in an Indiana Supreme Court-ordered special election. Pastrick went on to be the subject of a civil racketeering suit that's still pending before U.S. Senior Judge James Moody in Hammond. The Indiana Attorney General's Office declined to speak about that ongoing litigation, or what effect this federal case could have on that litigation.


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  1. Great observation Smith. By my lights, speaking personally, they already have. They counted my religious perspective in a pro-life context as a symptom of mental illness and then violated all semblance of due process to banish me for life from the Indiana bar. The headline reveals the truth of the Hoosier elite's animus. Details here: Denied 2016 petition for cert (this time around): (“2016Pet”) Amicus brief 2016: (“2016Amici”) As many may recall, I was banned for five years for failing to "repent" of my religious views on life and the law when a bar examiner demanded it of me, resulting in a time out to reconsider my "clinging." The time out did not work, so now I am banned for life. Here is the five year time out order: Denied 2010 petition for cert (from the 2009 denial and five year banishment): (“2010Pet”) Read this quickly if you are going to read it, the elites will likely demand it be pulled down or pile comments on to bury it. (As they have buried me.)

  2. if the proabortion zealots and intolerant secularist anti-religious bigots keep on shutting down every hint of religious observance in american society, or attacking every ounce of respect that the state may have left for it, they may just break off their teeth.

  3. "drug dealers and traffickers need to be locked up". "we cannot afford just to continue to build prisons". "drug abuse is strangling many families and communities". "establishing more treatment and prevention programs will also be priorities". Seems to be what politicians have been saying for at least three decades now. If these are the most original thoughts these two have on the issues of drug trafficking and drug abuse, then we're no closer to solving the problem than we were back in the 90s when crack cocaine was the epidemic. We really need to begin demanding more original thought from those we elect to office. We also need to begin to accept that each of us is part of the solution to a problem that government cannot solve.

  4. What is with the bias exclusion of the only candidate that made sense, Rex Bell? The Democrat and Republican Party have created this problem, why on earth would anyone believe they are able to fix it without pushing government into matters it doesn't belong?

  5. This is what happens when daddy hands over a business to his moron son and thinks that everything will be ok. this bankruptcy is nothing more than Gary pulling the strings to never pay the creditors that he and his son have ripped off. they are scum and they know it.