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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. Thank you, John Smith, for pointing out a needed correction. The article has been revised.

  2. The "National institute for Justice" is an agency for the Dept of Justice. That is not the law firm you are talking about in this article. The "institute for justice" is a public interest law firm. http://ij.org/ thanks for interesting article however

  3. I would like to try to find a lawyer as soon possible I've had my money stolen off of my bank card driver pressed charges and I try to get the information they need it and a Social Security board is just give me a hold up a run around for no reason and now it think it might be too late cuz its been over a year I believe and I can't get the right information they need because they keep giving me the runaroundwhat should I do about that

  4. It is wonderful that Indiana DOC is making some truly admirable and positive changes. People with serious mental illness, intellectual disability or developmental disability will benefit from these changes. It will be much better if people can get some help and resources that promote their health and growth than if they suffer alone. If people experience positive growth or healing of their health issues, they may be less likely to do the things that caused them to come to prison in the first place. This will be of benefit for everyone. I am also so happy that Indiana DOC added correctional personnel and mental health staffing. These are tough issues to work with. There should be adequate staffing in prisons so correctional officers and other staff are able to do the kind of work they really want to do-helping people grow and change-rather than just trying to manage chaos. Correctional officers and other staff deserve this. It would be great to see increased mental health services and services for people with intellectual or developmental disabilities in the community so that fewer people will have to receive help and support in prisons. Community services would like be less expensive, inherently less demeaning and just a whole lot better for everyone.

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