Acting E.C. chief is indicted
Edward Samuels is the latest to come under federal scrutiny in ongoing probe of fraud in city
Edward Samuels is the latest to come under federal scrutiny in ongoing probe of fraud in city
Post-Tribune (IN)
July 17, 2004
July 17, 2004
East Chicago's acting police chief is the latest addition to the growing list of city officials under federal indictment.
U.S. Attorney Joseph Van Bokkelen announced Friday that Edward Samuels was charged with accepting a total of $5,000, from 2000 to 2003, as payment for security work he never performed at Guthrie Street Apartments, which receives federal money for operation.
Samuels then lied to federal investigators and made false statements on his 2001 bankruptcy filing, according to the three-count indictment.
"No level of public corruption will be tolerated and this is not the end of it," Van Bokkelen said.
Samuels' indictment is not tied to any other ongoing federal probes under way as part of the U.S. attorney's office's "Operation Restore Public Integrity," though Van Bokkelen said other indictments can be expected in coming weeks.
Samuels, 50, was made acting police chief in January, after Frank Alcala retired.
Alcala had been under a cloud after the Post-Tribune revealed he voted absentee in East Chicago, though his main residence is in Munster. In January, Mayor Robert Pastrick announced a nationwide search for Alcala's permanent replacement.
"At this point that search remains ongoing," said city spokeswoman Myrna Maldonado.
The city plans to appoint an acting police chief as soon as next week, she said.
In the meantime, Deputy Chief Ricardo Chavarria will run the department. Samuels asked to be placed on administrative leave, pending a hearing from the Board of Public Works, according to the mayor's office.
"I have known Chief Samuels for a considerable length of time and I know him to be an honest, honorable person," Pastrick said.
Samuels, a 28-year veteran of the department, becomes the second East Chicago police officer to come under indictment in the ongoing federal probe into public corruption in Northwest Indiana.
City Councilman Joe De La Cruz, the department spokes-man, has been on paid leave since his September indictment stemming from the 1999 paving scandal tied to the mayor's re-election campaign.
Besides De La Cruz, the "Sidewalk Six," as they are sometimes called, include City Council President Frank Kollintzas , City Councilman Adrian Santos, City Controller Edwardo Maldonado, Park Superintendent Jose Valdez and City Engineer Pedro Porras.
"The message comes out that if there are other people out there doing the same thing they better stop before we find them," Van Bokkelen said. "And we will find them."
Court documents allege Samuels billed and was paid for hours he never worked at East Chicago's Guthrie Street Apartments "when in fact he was on vacation, out of town in Las Vegas, on casino boats or shopping." Investigators say he lied to investigators about being paid for this security work and lied in saying his off-duty work at St. Catherine Hospital was the only part-time security job he had.
Guthrie Street Apartments are owned by Harborside East Corp., based in Chicago. The complex is managed by Trillium Properties LLC in Gary, according to the manager.
Samuels' case was not expected to lead to related indictments, Van Bokkelen said.
Count three of the indictment said Samuels committed bankruptcy fraud by under reporting his income, including income from outside employment, and giving false information about the extent of gambling loses and not reporting a life insurance policy and savings bonds.
Samuels' Chapter 13 bankruptcy petition, filed in February 2001, listed $262,287 in debts and assets of $174,293, including four properties in East Chicago. While he claimed no gambling losses on the bankruptcy papers, his income tax returns listed gambling losses of $15,000 in 1999 and $5,200 in 2000.
According to his bankruptcy file, a payment plan was put in place to repay his debtors. But his court-appointed trustee, who was overseeing his bankruptcy plan, filed a motion to dismiss the proceedings when Samuels fell $3,150 behind on his payment plan.
Samuels avoided the dismissal when the court extended his time to repay. His debts are still being paid in installments.
