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Second Century suit can proceed

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Indiana Lawyer Rehearing

A Marion Superior judge has lifted a stay on the litigation involving East Chicago’s accounting and use of casino revenue, allowing the state to proceed with discovery and ask the court to require a for-profit organization to turn over documents relating to millions in casino revenue.

On Oct. 25, Marion Superior Judge David Shaheed granted the Indiana Attorney General’s motion to lift a stay that had been put in place earlier in the year on the years’ old litigation, originally filed by AG Steve Carter against East Chicago Second Century. The suit is aimed at getting the organization to fully account for $16 million in revenue it had received during the course of a decade from its .75 percent cut of the revenue from the city’s riverboat casino. Second Century opposes the disclosure, but the Indiana Supreme Court last year ruled the lawsuit could go forward. The AG’s Office in July blocked the city’s attempts to settle the litigation and split the approximately $8 million in revenue that remains in a separate account, without an accounting of the money. Judge Shaheed has not yet ruled on a request to release the segregated funds to pay Second Century’s attorneys fees.

Zoeller intends to subpoena documents and records from Second Century, and he also intends to support legislation in 2011 that requires financial transparency of all entities receiving casino money from local development agreements that led to this situation. Similar legislation has failed in the past two legislative sessions.

While not directly connected to this case, Zoeller maintains this funding relates to larger corruption patterns in East Chicago that has been ongoing for years – evident from a $108 million default judgment against former mayor Robert Pastrick because of a paving-for-votes scheme, and a federal jury verdict on theft and conspiracy in September against Mayor George Pabey, who’s now been removed from office following the verdict that he used city money to pay for personal home improvements.

Rehearing "Court revives casino revenue lawsuit" IL Aug. 4-17, 2010

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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