Sunday, September 5, 2004

09052004 - News Article - Fed probe puts counseling service in jeapordy - Nancy Fromm's Addiction and Family Care business may suffer as cases unfold - ROBERT CANTRELL



Fed probe puts counseling service in jeapordy
Nancy Fromm's Addiction and Family Care business may suffer as cases unfold
NWI Times
Sep 5, 2004
nwitimes.com/news/local/fed-probe-puts-counseling-service-in-jeapordy/article_ecd9e536-4f6b-50c3-8b4d-f3df2f654ec9.html
HAMMOND -- Her counseling service has helped so many, but there now is a question about whether Addiction and Family Care can help itself stay in business.

Nancy Fromm has used a lifetime of political acumen and social-guidance skills to win hundreds of thousands of dollars in contracts from a variety of local government agencies to serve criminal defendants with substance-abuse problems.

She also has secured contracts to provide sensitivity training to government employees. Some have praised her counseling; others have complained it was all a pointless exercise in mood music and massages.

It could all be in jeopardy, as the U.S. attorney's office revealed last month Fromm allegedly made illegal payments to the family of former Schererville town judge Deborah Riga to keep that court's business. She now is cooperating with federal investigators.

Sources within local government said that revelation may cost her lucrative contracts, because she is viewed either as having committed ethical violations or because she betrayed Riga to save herself, and may betray others.

U.S. Attorney Joseph Van Bokkelen said last month after announcing Fromm's involvement in the case, "In this indictment, she's a victim."

Fromm declined comment on the future of her business and remains active as a Hammond precinct committeewoman working on behalf of a number of Democratic candidates running in the general election this November.

Highland lawyer J. Michael Katz, who represents Fromm, said he is sickened by rumors she now is considered political poison.

"She hasn't done anything wrong. She received a federal subpoena and responded truthfully and was forthcoming." Katz said.

"The fact that she may have to pay a price businesswise for doing what is the responsibility of every citizen, highlights a problem with the system. She has a legitimate business with a competent staff."

Fromm, a city Democratic precinct committeewoman has funneled $13,000 in donations the last six years to a variety of public officials and also helped their election campaigns in other ways. Those officials, in turn, have referred business to Addiction and Family Care, including hundreds of minor drug and alcohol offenders who go through local courts each year.

Fromm also has used Robert Cantrell as a paid consultant to bring in business for her. He is a former East Chicago Republican city chairman who was dumped by the GOP for his tendency to ally himself with Democratic politicians.

Both provided help to the unsuccessful re-election campaign of Riga, who pleaded not guilty to charges that she set up a driving school for traffic violators and a counseling service for teen offenders and then embezzled more than $30,000 in fees paid to attended the programs.

State law and judicial canons forbid judges to profit from their courts beyond their fixed salaries.

The charges include allegations she extorted money from Fromm, whose business was providing counseling for criminal defendants. The indictment alleges she was forced to pay Riga's father $2,000 under the guise of his being a consultant. Riga's father has not been charged with any wrongdoing.

Merrillville lawyer Nick Thiros, who represents Riga, hinted in a recent court hearing he intends to attack Fromm's credibility.

One government source said last week he considered using an escape clause in his contract with Fromm after learning of the illegal payments. He said he was calmed by media reports that Fromm was not under investigation herself, but that he may switch future business to another less controversial counseling service.

Another source close to Addiction and Family Care said the negative publicity has stalled negotiations on a lucrative government contract to provide counseling to Hammond city employees.

Mayor Thomas McDermott Jr. couldn't be reached this week for comment. Hammond City Council Member Dan Repay said Friday no requests on such a contract had been made to the council.

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