Feds to plow ahead on public corruption
NWI Times
Nov 14, 2004
nwitimes.com/news/local/feds-to-plow-ahead-on-public-corruption/article_e9192ef0-73c3-5839-8f91-d458e940a9d3.html
HAMMOND | The U.S. attorney's office is stepping back to look at the split verdict in East Chicago's sidewalk fraud case and its consequences for their future campaign against public corruption.
Sources within the government said prosecutors will examine their tactics and overall strategy, but were generally pleased with the results.
They won convictions Wednesday of East Chicago City Councilmen Frank Kollintzas, D-4th, and Joe De La Cruz, D-at large, and City Controller Edwardo Maldonado on one count of misappropriating public money to pave residents' driveways and businesses' parking lots with free concrete, and another count for Kollintzas' lying to the FBI.
They lost on 10 fraud and conspiracy counts, which comprised the bulk of their argument that the defendants combined to use the money to enrich their campaigns for re-election in 1999. The jury also acquitted De La Cruz of lying to the FBI.
Prosecutors privately said that didn't concern them, because they still expect to win lengthy prison terms on the convictions.
A source close to the defendants challenges that assessment, saying newspaper headlines should have underscored the many acquittals, not the few convictions.
That source contends the misappropriation count is the least serious among the charges the defendants faced, because they could win release on probation at sentencing if their convictions stand on appeal.
Lawyers for the defendants are expected to appeal the guilty verdicts as early as Monday on grounds they are inconsistent with the acquittals on the other counts.
The trial will resume Monday. Prosecutors likely will ask the jury to issue a special verdict that the defendants misappropriated such a large amount of money that they deserve prison time.
Prosecutors privately acknowledge they pushed the envelope with the sidewalk case, because they didn't have evidence the defendants pocketed any of the $24 million spent on the sidewalk project in the form of bribes or kickbacks.
The defense was able to argue the money spent in the spring of 1999 stayed in the city in the form of free services to residents. One attorney close to the case said those charged in the sidewalk case only were guilty of "over-exuberant" government.
Overturning all convictions could force prosecutors to be less aggressive in pending prosecutions and future indictments of other East Chicago and Northwest Indiana officials under Operation Restore Public Integrity.
The public corruption initiative has won the conviction of 19 public officials and politically connected business persons. Another nine public figures await trial.
Kevin Milner, a Dyer lawyer representing De La Cruz, made an impression on the jury when he argued the government's conspiracy charge in the sidewalk case was hollow because East Chicago Mayor Robert Pastrick and his highest advisers remained uncharged.
During their deliberations, jurors asked the judge whether the defendants could be convicted of conspiring with an official outside those charged in the case.
The government has named Pastrick as an unindicted co-conspirator in the case but hasn't charged him with any wrongdoing.
There also has been speculation that if the jury votes to give the defendants enhanced sentences that might involve prison time, the defendants and prosecutors might work out a deal in which the defendants would cooperate with the government in future prosecutions.
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