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State seeks contempt against East Chicago casino group

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Principals of a politically connected East Chicago group that received $16 million in casino revenue intended to benefit the city should be held in contempt if they continue to fail to disclose what happened to the money, the state argued in court Thursday.

Marion Superior 1 Judge David Shaheed heard the motion from the attorney general’s office and several other motions during a hearing in Indianapolis, the latest chapter in long-running litigation over money collected from the Lake County casino.

Defendant East Chicago Second Century received millions of dollars under a riverboat casino license that contained a unique provision: Second Century, a private corporation, would receive 0.75 percent of casino revenue. Its principals, Michael A. Pannos, a former Indiana Democratic Party chairman, and Thomas S. Cappas, a Lake County Democratic Party activist, were longtime allies of former Mayor Robert Pastrick, whose administration crumbled in a separate corruption scandal from which the current case arises.

The casino license was granted during Pastrick’s tenure.

“Once again the state emphasized to the court the importance of obtaining Second Century’s financial records regarding their expenditure of gaming funds received for purposes of economic development for the City of East Chicago under the local development agreement,” Attorney General Greg Zoeller said in a statement. “The Attorney General’s office has sought transparency and accountability of the $16 million and will continue to be persistent in asking the court to order discovery of this information.”

Shaheed is expected to rule on motions at a later date. The trial on claims for unjust enrichment and for constructive trust is set to begin Oct. 20, 2014.
 

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  1. I'm not sure what's more depressing: the fact that people would pay $35,000 per year to attend an unaccredited law school, or the fact that the same people "are hanging in there and willing to follow the dean’s lead in going forward" after the same school fails to gain accreditation, rendering their $70,000 and counting education worthless. Maybe it's a good thing these people can't sit for the bar.

  2. Such is not uncommon on law school startups. Students and faculty should tap Bruce Green, city attorney of Lufkin, Texas. He led a group of studnets and faculty and sued the ABA as a law student. He knows the ropes, has advised other law school startups. Very astute and principled attorney of unpopular clients, at least in his past, before Lufkin tapped him to run their show.

  3. Not that having the appellate records on Odyssey won't be welcome or useful, but I would rather they first bring in the stray counties that aren't yet connected on the trial court level.

  4. Aristotle said 350 bc: "The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of an modes of getting wealth this is the most unnatural.

  5. Oh yes, lifetime tenure. The Founders gave that to the federal judges .... at that time no federal district courts existed .... so we are talking the Supreme Court justices only in context ....so that they could rule against traditional marriage and for the other pet projects of the sixties generation. Right. Hmmmm, but I must admit, there is something from that time frame that seems to recommend itself in this context ..... on yes, from a document the Founders penned in 1776: " He has refused his Assent to Laws, the most wholesome and necessary for the public good."

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