Tuesday, March 27, 2007

03272007 - News Article - Cantrell hears list of fraud charges after return to U.S. - Political insider says he will enter a plea in April on 11-count indictment - ROBERT CANTRELL



Cantrell hears list of fraud charges after return to U.S.
Political insider says he will enter a plea in April on 11-count indictment
Post-Tribune (IN)
March 27, 2007
Political insider Robert J. Cantrell was back on American soil and in U.S. District Court.

Cantrell was visiting Italy last week when a federal grand jury returned an 11-count indictment against him for alleged fraud involving a counseling service that paid him for help getting contracts with the North Township Trustee's office while he was on staff with the trustee.

He formally heard the charges against him for the first time Monday and was released on a $20,000 unsecured bond. He will enter a plea next month, when his attorney, Kevin Milner, returns from an out-of-state trip.

Cantrell said his trip had been planned for more than a year, and he returned late Saturday as scheduled. U.S. Attorney Joseph Van Bokkelen's office announced Cantrell's indictment Wednesday, ending years of speculation about a lengthy federal investigation of the trustee's office and Cantrell.

Reached at his home in Schererville after his court appearance, the 65-year-old chatted amiably about East Chicago Central High School winning the state basketball title over the weekend, but deferred comment on his case to Milner.

Cantrell has long been known for his extensive, and often shifting, ties to Lake County political figures. Federal investigators apparently began their probe of Cantrell's duties at the trustee's office more than three years ago.

Cantrell allegedly used his connections to former North Township Trustee Greg Cvitkovich to win a contract for Addiction and Family Care, a counseling company that paid him half of the fees the company earned from the township.

The indictment also alleges Cantrell had company owner Nancy Fromm fraudulently add two people to the company's group insurance plan, even though they were not full-time employees, and that Cantrell did not include cash and other payments he received from the company on his tax returns.

Fromm pleaded guilty to tax evasion and obstruction of justice charges the week before Cantrell was indicted, and her plea agreement requires her to cooperate with federal investigators.

The charges against Cantrell also include honest services fraud, for violations of state conflict of interest laws that required him to declare his financial interest in AFC.

Honest services statutes have been applied in several notable prosecutions of political figures, most notably former Illinois governor George Ryan and City of Chicago patronage boss Robert Sorich, said Gary attorney James B. Meyer, a former assistant U.S. Attorney who prosecuted crooked judges-- without the benefit of honest services statutes-- during the 1980s.

03272007 - News Article - Cantrell goes to court - CANTRELL: As promised, Lake County operative returns from European vacation to face charges - ROBERT CANTRELL



Cantrell goes to court
CANTRELL: As promised, Lake County operative returns from European vacation to face charges
NWI Times
Mar 27, 2007
nwitimes.com/news/local/cantrell-goes-to-court/article_942b3766-44eb-5b40-821b-69ba6b654a53.html
HAMMOND | Fresh from his Italian vacation, political insider Robert Cantrell appeared in federal court Monday morning to hear prosecutors read the 11 criminal charges against him.

Cantrell was clad all in black as he appeared before U.S. Magistrate Judge Paul Cherry and said in a quiet voice that he had not yet seen a copy of the indictment. Assistant U.S. Attorney Wayne Ault handed him one.

After years of federal scrutiny, the political power broker was indicted on charges he did not disclose he was profiting from a counseling contract that he induced his former employer, the North Township trustee's office, to sign.

Prosecutors also allege Cantrell directed the contractor to fraudulently place two non-employees on its health insurance plan and that Cantrell under-reported his own income between 2000 and 2003. Cantrell did not enter a plea Monday but could do so during his arraignment scheduled for April 3.

His attorney, Kevin Milner, has said Cantrell plans to plead not guilty and fight the allegations at trial. Cantrell declined to comment Monday.

"I can't, under advice of my attorney. One of these days I'll say something," Cantrell said after leaving court with his son, attorney John Cantrell. Milner did not attend Monday's hearing.

Federal prosecutors Ault and Orest Szewciw did not request that Cantrell be held in jail during his trial, but they asked him to surrender his passport.

Cantrell, 65, of Schererville, was released on a standard $20,000 unsecured appearance bond, which means he would be liable to pay the amount only if he skipped a court hearing.

He was vacationing in Italy last week when a federal grand jury indicted him on charges he played a role in the alleged fraud schemes.

Cantrell worked for North Township as an inspector and office manager when the township hired a Hammond counseling firm politically aligned with him called Addiction and Family Care.

The contract, which lasted from 2000 to 2005, mandated that township employees attend monthly stress-relief and group counseling sessions with the firm. Former township Manager Louis Karubas said the township had to pay the firm even if the employees did not attend the sessions.

Cantrell was receiving "referral fees" of up to 50 percent of what the township paid to the firm through a then-secret agreement with the owner, Nancy Fromm, the indictment alleges.

Fromm has pleaded guilty to tax evasion and hiding information from a grand jury, but she has defended her firm and the work it did on behalf of the township as legitimate.

Monday, March 26, 2007

03262007 - News Article - Change ahead for Lake County politics? Pabey, Philpot seen as hampered if indictment knocks out Cantrell - ROBERT CANTRELL



Change ahead for Lake County politics?
LAKE COUNTY: Pabey, Philpot seen as hampered if indictment knocks out Cantrell
NWI Times
Mar 26, 2007
nwitimes.com/news/local/change-ahead-for-lake-county-politics/article_84f49586-7c45-5a15-a5b3-1c284ded4a2f.html
Time was, the indictment of a political insider like Robert Cantrell seven weeks before a primary election could have sent unmistakable shock waves through the hearts of many Lake County politicians.

But last week, opinions among political figures were, at best, mixed as to what effect Cantrell's long-awaited indictment would have in the May 8 primary and beyond.

As Cantrell's attorney prepared to turn his client over to U.S. marshals this morning for arrest, the conventional wisdom among observers was that the indictment would hurt Cantrell's allies, particularly East Chicago Mayor George Pabey and Lake County Clerk Tom Philpot. Neither returned calls for comment.

Cantrell's defense attorney, Kevin Milner, predicted the indictment would have little affect on anything. He said it lacked substance and few people would believe its allegations.

Those who did see the indictment having an immediate effect said Pabey -- who is facing four primary challengers in May -- would suffer the greatest harm if the charges detract from Cantrell's political activities.

"Cantrell not being the general manager for Pabey on the campaign will have a major negative impact," said one longtime Lake County observer, whom The Times chose not to identify.

Two political insiders told the newspaper that Cantrell personally has told them he planned to take a job in Pabey's administration shortly after the primary election in exchange for his help on the campaign trail.

Would that job prospect be affected? East Chicago Human Resources Director Fred Vasquez said he was aware of no such plans.

"That's the first I've even heard of it. I don't even have a resume on him," Vasquez said.

Philpot is widely rumored to be planning a run for Lake County commissioner in 2008 to fill the seat being vacated by Fran DuPey.

Philpot and Cantrell's political alliance is well known in political circles and acknowledged by Cantrell in interviews. But DuPey wondered whether Philpot would even need Cantrell on his side in 2008.

"Philpot's a big boy, he's run in enough campaigns. He should be able to run one on his own," said Dupey, who lost to Philpot in a 1999 primary battle for mayor of Hammond.

Younger elected officials in Lake County, such as Hammond Mayor Thomas McDermott Jr. and North Township Trustee Frank Mrvan, questioned whether Cantrell's indictment would have any immediate or future impact. Both have downplayed any role Cantrell says he played in their past elections.

Mrvan said he had not seen Cantrell at any political fundraisers or functions in the past five months.

"After he retired (from his job as a North Township office manager) he kind of fell off the political scene," Mrvan said. "There were a lot of people mentioning that."

Lake County Surveyor George Van Til said he would be happy if Cantrell's indictment hindered the behind-the-scenes politicking, because elections should be determined by the public.

"The whole issue of unelected power brokers is really problematic, whether it's Karl Rove or Bobby Cantrell," Van Til said. "If you need the services of a power broker, that puts the power broker and you in an interesting position."

03262007 - News Article - Cantrell released on bond - ROBERT CANTRELL



Cantrell released on bond
NWI Times
Mar 26, 2007
nwitimes.com/news/local/cantrell-released-on-bond/article_68d0e7eb-9ba1-592d-934b-6aa88e25ebec.html
Lake County political figure Robert Cantrell was released on bond Monday following his surrender on federal fraud and tax evasion charges.

A U.S. District Court magistrate judge read the 11-count indictment to Cantrell, 65, of Schererville. He will not enter a plea to the charges until another hearing next month. He is expected to plead not guilty and demand a jury trial.

The government alleges Cantrell secretly used his job at the North Township Trustee's office to win Addiction and Family Care a lucrative public contract to provide counseling for township employees.

The government alleges Cantrell was paid by Addiction and Family Care for his help in getting the contract and that Cantrell concealed this from the trustee and concealed his income from the IRS.

Sunday, March 25, 2007

03252007 - News Article - Public paid for music, massages - North Twp. workers say Cantrell indictment helps explain the questionable $30K contract - ROBERT CANTRELL



Public paid for music, massages
North Twp. workers say Cantrell indictment helps explain the questionable $30K contract
NWI Times
Mar 25, 2007
nwitimes.com/news/local/public-paid-for-music-massages/article_95282a94-1dd8-55e7-b70d-e319e9543883.html
In the middle of a busy workday, Louis Karubas said he would kick back on a Laz-Z-Boy, turn the lights low, switch on recorded sounds of rainfall and take a couple hours to just relax.

Karubas, who supervised a staff of inspectors in the North Township Trustee's office, said he and many of his government coworkers whittled away many working hours in such relaxation sessions at the offices of Addiction and Family Care.

And he said his employer ordered him to do it on public time.

Karubas and other workers say they knew it was a waste of time and public money, but they were ordered to go. A schedule was even posted in the office for the mandatory monthly sessions.

"Nobody wanted to go because you had to leave work to go over there," Karubas said. "And if you didn't, you lost a days' pay. I didn't like it at all."

Karubas occasionally saw political operative Robert Cantrell examining records in a back office. Now Cantrell's former presence at the office makes sense, Karubas and another township employee said.

A federal grand jury indicted Cantrell on Wednesday. Prosecutor contend Cantrell induced then-Trustee Greg Cvitkovich to sign a $30,000-a-year contract with the counseling firm that lasted from January 2000 to November 2005. Cantrell faces a total of 11 charges for fraud and tax evasion.

Cantrell's involvement with the contract was illegal, prosecutors argue, because he was secretly receiving up to half of the money that the township was paying for each session while Cantrell also was an employee of the township as an inspector and office manager.

Cantrell was earning less than $38,000 a year from his township job, but his income tax returns say he reported annual incomes between $165,000 and $212,000 from 2000 to 2003, court records state.

Cantrell's attorney, Kevin Milner, has said the indictment against Cantrell lacks substance and Cantrell's activities were legal.

Nancy Fromm, owner of the counseling firm and long-time political ally of Cantrell, defended the contract in a letter to The Times in 2004, saying the sessions were run by educated and licensed therapists to improve working relationships between employees and with the public.

Fromm wrote that the sessions included alcohol and drug abuse counseling, conflict resolution, diversity sensitivity training and teaching the workers "to respect and value each other and their clients." Fromm also defended the use of massage for stress relief.

"Successful companies are using massage therapy in the workplace to increase satisfaction and productivity," she wrote.

Fromm pleaded guilty to tax evasion and obstruction of justice two weeks ago, but her attorney has said the convictions had no bearing on the quality of work performed by the firm.

Current Township Trustee Frank Mrvan said he cancelled the contract with Fromm a month after coming to office because it seemed wasteful -- particularly the stress-relief massages.

"I thought it was insane that we were spending taxpayer dollars to go send our employees to get massages for stress relief," Mrvan said.

Friday, March 23, 2007

03232007 - News Article - Student reacts to Cantrell indictment - Two students show for usually packed class- ROBERT CANTRELL



Student reacts to Cantrell indictment
Two students show for usually packed class
NWI Times
Mar 23, 2007
nwitimes.com/news/local/student-reacts-to-cantrell-indictment/article_485d6690-2460-5980-bf7a-c12176c4e2c8.html
HAMMOND -- Only two students showed up Thursday morning for Robert Cantrell's usually packed American Government class at Purdue University Calumet.

The 100-level course is a requirement for most degree programs at the campus, and 34 students are enrolled for the twice-weekly instruction.

One undergrad peeked into the empty Gyte Hall classroom and kept on walking just prior to the 11 a.m. class Thursday, but Nicole Ramirez, a freshman education student from Hammond, stepped inside.

That her instructor had been indicted on federal felonies by the U.S. Attorney in Hammond the day before was news to Ramirez. Cantrell, a connected long-time political operative in Lake County, faces 11 counts alleging fraud and tax evasion.

"I had no clue," Ramirez said. "I was sick and missed class on Tuesday."

Ramirez said she enjoyed studying under Cantrell last semester, learning about American government through 1877, and signed up for the second half of the course this year.

"We learn a lot from him," Ramirez said. "He knows a lot about history and makes the class real interesting.

"He uses local politics to illustrate what's happened in the past, and lately he's been talking about the upcoming elections in the area and how they relate to what's gone on before."

Wes Lukoshus, Purdue University Calumet assistant vice chancellor, said the university will honor Cantrell's contract to teach political science courses at least for the remainder of the spring semester because Cantrell is presumed innocent unless proven otherwise.

03232007 - News Article - Lake County pol faces 11 counts in fraud, false tax returns case - ROBERT CANTRELL



Lake County pol faces 11 counts in fraud, false tax returns case
Journal Gazette, The (Fort Wayne, IN)
March 23, 2007
A Lake County political insider has been indicted on 11 felony charges including fraud and tax evasion.

A 20-page indictment alleges Robert Cantrell illegally earned profits from a North Township contract he helped engineer while working for the township and then convinced that contractor to fraudulently add two non-employees to its health insurance plan.

"He owed a duty of honest service to the citizens of North Township," said Deputy U.S. Attorney David Capp. "Part of that duty includes no self-dealing on contracts."

Cantrell was expected to turn himself in Monday. He is charged with four counts of honest services fraud, three counts of insurance fraud and four counts of filing false tax returns.

Cantrell and Addiction and Family Care owner Nancy Fromm have been targeted by U.S. Attorney Joseph Van Bokkelen's Operation Restore Public Integrity probe for years.

Fromm, a friend of Cantrell's, last week pleaded guilty to obstruction of justice and tax evasion charges and has agreed to cooperate with investigators.

"This is stuff they have been talking about forever, and it is based entirely on the word of Nancy Fromm, who is cooperating with the government and trying to get herself out of trouble at Bobby Cantrell's expense," said Cantrell's attorney, Kevin Milner.

Cantrell, 65, of Schererville, is in Italy on vacation and could not be reached for comment.

The fraud counts were committed through the mail and involved a total of $150,000 in unreported income and diverted insurance benefits between 2000 and 2004, the U.S. attorney alleges.

Cantrell has been involved in Lake County politics since the 1960s, when he became the on-again, off-again chairman of the East Chicago Republican Party.

03232007 - News Article - Lake officials: Cantrell scandal doesn't touch us - Politically connected counseling firm won contracts around the county - ROBERT CANTRELL



Lake officials: Cantrell scandal doesn't touch us
Politically connected counseling firm won contracts around the county
NWI Times
Mar 23, 2007
nwitimes.com/news/local/lake-officials-cantrell-scandal-doesn-t-touch-us/article_1e8aa5e2-b4fe-5e25-a3f5-7c61b741698f.html
CROWN POINT | Lake County officials insisted Thursday allegations swirling around indicted political operative Robert Cantrell never touched them.

"Most of what I knew about Bobby Cantrell I read in the paper because I've always avoided him," County Commissioner Fran DuPey, D-Hammond, said Thursday.

County Sheriff Rogelio "Roy" Dominguez said he was surprised to learn Cantrell allegedly profited so handsomely from Addiction and Family Care, a Hammond-based counseling that did work for the sheriff's office and other county and municipal departments.

All of the comments from county officials followed the Wednesday indictment of Cantrell in Hammond federal court on 11 felony counts related to fraud and tax evasion -- some of the counts relating directly to work Cantrell did in steering business to Addiction and Family Care.

While he has known Cantrell for many years, Lake County Commissioner Gerry Scheub, D-Schererville, denied having ever been unduly influenced by the well-known power broker.

"Bob and I have know each other for 45 years through sports," Scheub said. "Both of us are very aggressive on the athletic field, and Bob would never make me do something if I didn't want to do it."

Dyer defense lawyer Kevin Milner, who represents Cantrell, said Thursday his client will plead not guilty.

"This case will go to trial and hopefully the quicker and better," Milner said. "I was surprised that after the years they spent going through every aspect of his life, that this was all they came up with.

"I thought there would be something of substance. This lady, Nancy Fromm, got herself in trouble, and now she's trying to lower her sentence."

The indictment alleges Cantrell received up to half the fees paid to Fromm's firm, Addiction and Family Care, under contracts with state and local courts and the sheriff's work-release program.

Times investigations indicated the firm won local government contracts worth more than $400,000 to provide counseling to minor offenders.

Lake Superior Court Judge Jesse Villalpando claimed last year that although he sent some minor offenders to Fromm's firm, Cantrell organized opposition to his re-election to pressure him to steer more business there. Cantrell denied the allegation. Villalpando couldn't be reached Thursday for comment.

Commissioners DuPey and Scheub said they voted to give Fromm's firm contracts, which eventually were worth more than $100,000, on the recommendation of the sheriff and Lake County Community Corrections, a joint effort by state and local officials to reduce prison overcrowding.

"(Cantrell) never approached me for anything for Nancy Fromm or anyone else," Scheub said. DuPey said Cantrell was never a political supporter of her campaigns.

Dominguez said he chose Fromm's firm to counsel offenders in his work-release center because he felt the business did a good job and would perform the work for $50,000 less than the previous counseling service.

Thursday, March 22, 2007

03222007 - News Article - Robert Cantrell indicted - CRIMINAL JUSTICE: Feds allege fraud, filing false tax returns - ROBERT CANTRELL



Robert Cantrell indicted
CRIMINAL JUSTICE: Feds allege fraud, filing false tax returns
NWI Times
March 22, 2007
nwitimes.com/news/local/robert-cantrell-indicted/article_d9b33aa1-a781-58e8-b819-174c06058c46.html

HAMMOND | After years of federal scrutiny, renowned political insider Robert Cantrell was indicted Wednesday on 11 felony counts including fraud and tax evasion.

Federal authorities allege Cantrell illegally earned profits from a North Township contract he helped engineer while working for the township and then convinced that contractor to fraudulently add two nonemployees to its health insurance plan.

A federal grand jury Wednesday morning indicted Cantrell on 11 charges -- four counts of honest services fraud, three counts of insurance fraud and four counts of filing false tax returns.

Cantrell declined to comment Wednesday when contacted by The Times, and his attorney could not be reached. Federal authorities say Cantrell is vacationing in Italy, but has arranged to turn himself in for arrest Monday morning, when he could have the option of entering a plea to the charges.

The fraud counts were committed through the mail and involved a total of $150,000 in unreported income and diverted insurance benefits between 2000 and 2004, the U.S. attorney in Hammond alleges.

"It's been no secret for many years that the federal government has been looking at Mr. Cantrell," said North Township Trustee Frank Mrvan, who made canceling the Cantrell-influenced contract one of his first priorities after taking office in 2005.

At the core of both the contract and insurance fraud schemes is the Hammond-based counseling firm Addiction and Family Care. The firm has contracts to counsel employees of various local governments and criminal offenders ordered by local courts to attend drug counseling.

Cantrell, 65, of Schererville, has openly admitted to receiving "referral fees" from the firm, and the indictment states that he even reported some of that income on his taxes.

He reported income of $212,901 in 2003, which would have included his roughly $38,000 salary as an office manager for the North Township poor relief office, federal prosecutors allege.

Prosecutors say Cantrell broke the law when he failed to disclose the financial relationship with the firm to the township after he arranged for the government body to hire Addiction and Family Care to perform mandatory stress counseling for all employees.

Township employees have complained that the sessions were bogus. The indictment alleges that every time one of his fellow township employees attended one of the mandatory sessions, Cantrell received up to 50 percent of the fee collected.

"A public office is not a license to take money from the public," Deputy U.S. Attorney David Capp said Wednesday. "We've got to get a handle on these contracts, and that's primarily what this indictment focuses on."

Less has been made known about the alleged insurance fraud scheme. The indictment alleges Cantrell arranged to have Nancy Fromm put two people who did not work for her firm on the firm's health insurance plan.

The people are not identified or charged in federal court documents. Capp declined to say Wednesday whether the two people were relatives of Cantrell, but he said Cantrell himself was not one of them.

Cantrell has been intimately involved with Lake County machine politics since the 1960s, when he became the on-again, off-again chairman of the East Chicago Republican Party.

Over the years, he has been accused of conspiring with county Democrats to use his influence to weaken the county Republican Party. He eventually was kicked out of the GOP for openly supporting Democrats, including his daughter, Julie, for a county judgeship.

He never has been elected to public office. Observers say his political influence stems partly from his ability to influence candidates to run or not run for office. While a township employee, he admitted to getting homeless and indigent people to vote by absentee ballot and work as Republican poll workers.

03222007 - News Article - Indictment tags Cantrell on tax, fraud charges - Political insider accused of conflict of interest involving counseling firm - ROBERT CANTRELL



Indictment tags Cantrell on tax, fraud charges 
Political insider accused of conflict of interest involving counseling firm
Post-Tribune (IN)
March 22, 2007
After years under the FBI microscope -- and perhaps longer circulating through the Lake County political rumor mill -- political insider Robert Cantrell was indicted Wednesday on fraud and tax evasion charges.

Prosecutors allege Cantrell, 65, violated conflict of interest laws for helping a counseling service owned by a friend to win contracts with his full-time employer, the North Township Trustee's office.

In political circles, it was well known Cantrell's primary occupation was local politics and his frequently shifting allegiances have been closely watched as FBI agents apparently scoured boxes of documents from the trustee's office and Addiction and Family Care, which provided counseling services to more than a dozen local courts and government agencies.

Those clients included Cantrell's daughter, Lake County Superior Court Judge Julie Cantrell, and North Township.

03222007 - News Article - Feds accuse political insider Cantrell of tax evasion, fraud - ROBERT CANTRELL



Feds accuse political insider Cantrell of tax evasion, fraud
Post-Tribune (IN)
March 22, 2007
After several years under investigation by federal agents, Lake County political insider Robert Cantrell was charged Wednesday with 11 counts of fraud and tax evasion in connection with his alleged ties to a counseling firm that also has been under federal scrutiny.

A 20-page indictment alleges Cantrell violated state conflict of interest laws by not disclosing that while working for the North Township trustee, he took home a six-figure share of the money paid to Addiction and Family Care, to the township and more than a dozen courts and other government units for counseling services.

"He owed a duty of honest service to the citizens of North Township," said Deputy U.S. Attorney David Capp. "Part of that duty includes no self-dealing on contracts."

Public servants are required to disclose financial interest in companies that do business with their public employers. The indictment also alleges Cantrell did not claim some $150,000 he received from AFC in the form of cash, payroll payments to an unnamed Person A who did not work for the company, and insurance premiums paid for Person A from 2000 to 2004.

During the same period, Cantrell did claim $123,505 in income from AFC.

Cantrell, who retired his township job in October, was on vacation in Italy with his wife, and will report to court Monday. Reached on his cell phone in Italy on Wednesday morning, the normally effusive Cantrell referred comment to his attorney, Kevin Milner.

"We will be there bright and early Monday morning," Milner said. "He is looking forward to coming back."

Cantrell and Addiction and Family Care owner Nancy Fromm have been targeted by U.S. Attorney Joseph Van Bokkelen's Operation Restore Public Integrity probe of public corruption for years. Fromm, a friend of Cantrell's, last week pleaded guilty to obstruction of justice and tax evasion charges and has agreed to cooperate with investigators.

Milner said there is "nothing new" to the U.S. attorney's allegations, noting that federal agents have been investigating Fromm and his client for at least three years.

"And this was the best they could come up with," Milner said. "This is stuff they have been talking about forever, and it is based entirely on the word of Nancy Fromm, who is cooperating with the government and trying to get herself out of trouble at Bobby Cantrell's expense."

Federal investigators took copies of all Fromm's financial records in 2003 and 2004, as well as bundles of township records from the administration of former trustee Gregory Cvitkovich.

Cvitkovich, who hired Cantrell in 2001 and placed him in a number of jobs with North Township despite allegations that Cantrell spent most of his time doing political work, pleaded guilty to tax evasion in 2005.

The allegation states Cantrell "helped" Fromm win contracts with the township and as many as 18 local courts and government agencies, including the Lake County Sheriff's Department and the court of his daughter, Lake County Superior Court Judge Julie Cantrell.

AFC's contract with the trustee's office, which included providing free massages to on-duty township employees, was canceled by Frank Mrvan Jr., who replaced Cvitkovich as trustee.

The indictment states Fromm paid Cantrell up to 50 percent of the fees AFC received for court referrals, a smaller amount from the fees collected from the township and city of East Chicago, and $2,000 a month for his help winning a contract with the sheriff's work release program.

Cantrell also is charged with insurance fraud for having AFC provide insurance coverage for two people, an unnamed Person A and Person B, representing to the insurance companies that the pair were full-time employees.

Cantrell also allegedly had Fromm make some payments to Person A, apparently to disguise some of his income and avoid paying taxes.

03222007 - News Article - New firm takes over for former Cantrell-releated counseling service - DRUG COUNSELING : Fresh Start will rehabilitate Lake County criminals - ROBERT CANTRELL



New firm takes over for former Cantrell-releated counseling service
DRUG COUNSELING : Fresh Start will rehabilitate Lake County criminals
NWI Times
Mar 22, 2007
nwitimes.com/news/local/new-firm-takes-over-for-former-cantrell-releated-counseling-service/article_7d382b91-ee22-56d8-b994-eb41be97d42e.html
CROWN POINT | Lake County commissioners introduced a new social services firm Wednesday to take over work once dominated by the political alliance of Nancy Fromm and Robert Cantrell.

Commissioners voted to hire Veronica Ramos-Clark's Fresh Start Counseling Service to perform drug counseling to defendants sentenced for minor crimes.

Ramos-Clark's firm, which has offices in Hammond, Merrillville and Valparaiso, will receive $480 per person to shepherd clients through a 12-week program offered by Lake County Community Corrections, a work-release center funded by the state to reduce prison overcrowding.

The work formerly was done by Addiction and Family Care, a Hammond counseling service that once had contracts with the county and many state and municipal courts. Fromm received $22,000 last year under the Community Corrections contract.

Commissioners refused to renew their contract with Fromm's firm late last year after a federal grand jury indicted her on a charge of obstructing the U.S. attorney's investigation of public graft in Lake County. Fromm pleaded guilty last week and agreed to cooperate in that investigation.

Fromm has admitted paying Cantrell as a consultant to grow her list of clients. Some accused Cantrell of using strong-arm tactics to build Addiction and Family Care's business.

A federal grand jury indicted Cantrell on Wednesday afternoon on federal fraud and tax evasion charges.

Superior Court Judge Jesse Villalpando has accused Cantrell of threatening to run challengers to oppose Villalpando's re-election if the judge didn't order more people convicted of alcohol-related violations in his courtroom to undergo counseling courses at Addiction and Family Care.

03222007 - News Article - Bobby Cantrell has seen it coming - CRIMINAL JUSTICE: Tough and competitive, he may fight feds hard - ROBERT CANTRELL



Bobby Cantrell has seen it coming
CRIMINAL JUSTICE: Tough and competitive, he may fight feds hard
NWI Times
Mar 22, 2007
nwitimes.com/news/local/bobby-cantrell-has-seen-it-coming/article_3b9a7f24-bfed-5bbc-9624-7b7754b86497.html
EAST CHICAGO | A year ago, Robert Cantrell was well aware federal investigators were tracking his actions and digging into his business deals.

But asked to publicly comment on what the feds were after, Cantrell took his attorney's advice: Don't appear arrogant or dismissive.

"I'd rather not go into it. I don't want to piss them off. I have my own theories, of course," Cantrell told The Times during a lengthy interview in the East Chicago poor relief office where he worked at the time.

Now Cantrell knows that it was his involvement with Nancy Fromm's Addiction and Family Care that investigators were interested in most.

Cantrell freely acknowledged Fromm had paid him under yearly contracts to use his connections in government to generate work for her firm.

Investigators allege much of this payment was in cash and not reported on Cantrell's tax forms and that Cantrell had an illegal conflict of interest because he had convinced the township to sign a contract with Fromm without officially disclosing he would profit from it.

Fromm, the sole owner of Addiction and Family Care, pleaded guilty last week to tax evasion and withholding information that would have disclosed how much she and Cantrell earned from government contracts.

In pleading guilty, Fromm agreed to cooperate with investigators on cases against Cantrell or anyone else she has information about.

Would Cantrell also flip? Political figures were asking that question Wednesday afternoon.

One observer said, no, Cantrell would pursue a court battle with the government with the same vigor that he fights political races, a vigor that grew from his competitiveness and success on the basketball court in high school.

"One thing about politics and about winning," Cantrell said last year. "It's just like playing basketball: If you're organized, you're well coached, you're well disciplined, you win."

03222007 - News Article - Mark Kiesling column: Bobby Cantrell, the man behind the indictment - ROBERT CANTRELL



Mark Kiesling column: Bobby Cantrell, the man behind the indictment
NWI Times
Mar 22, 2007
nwitimes.com/news/opinion/columnists/mark-kiesling/mark-kiesling-column-bobby-cantrell-the-man-behind-the-indictment/article_81b2ab68-d51f-5ab8-ab92-fc2128be90b2.html
The Dutchman has pulled up a big fish this time, maybe the biggest he's grabbed in his six years as U.S. attorney for the Northern District of Indiana.

Bobby Cantrell has never held public elective office, but his indictment Wednesday on 11 federal felonies is going to rattle more cages than if U.S. Attorney Joe Van Bokkelen had indicted the mayors of every city in Lake County.

Who is this guy, the man newspapers invariably refer to in reporter shorthand as a "political fixer" or a "political operative?" Why is he so significant, this man who has never once gone before the voters, who has gone out of his way to avoid the spotlight and who now faces what could be a life sentence in prison?

Everything important about Robert Cantrell is in one single place, and that is between his left ear and his right ear.

You've heard about the guy who "knows where the bodies are buried?" Well, he's your undertaker.

For years, he led the East Chicago Republican precinct organization, keeping it a puppet whose strings were pulled by former Mayor Robert Pastrick, then chief of the county's Democratic Party whose influence extended to Indianapolis and Washington.

East Chicago was the place Democratic pols went to be baptized. If Pastrick was the priest, Cantrell was the altar boy.

He is an intelligent man whose mind likely holds the key to unraveling just about everything done above and below the table in Lake County. He has taken credit -- and been given credit -- for either up front or behind-the-scenes campaigns that have put County Clerk Tom Philpot, County Treasurer John Petalas and Hammond Mayor Tom McDermott Jr. into office.

Some shy away once Cantrell has done his work. McDermott's team members have done their best to distance their candidate from Cantrell, who contributed time and money to the campaign and whose son John was McDermott's former law partner and is still tied to the city.

Others stand by their man. Just last week, Philpot acknowledged his friendship with Cantrell. "Bob Cantrell is a friend of mine," he said. "But that does not mean I support everyone he supports or that he supports everyone I support."

John Cantrell is also a contract attorney with the clerk's office.

Bob's kids have done well. John, Julie and Jen are all lawyers. Julie, who was a tough prosecutor in Lake County for years, has been a Lake Superior Court Judge since 1996 and won re-election as a Democrat.

In November 2003, Bob Cantrell quit his longtime association with the Republican Party and came out as a Democrat. He also began teaching a class at Purdue University Calumet in Hammond, aptly titled Politics 101.

As teacher of American Government and Politics, his course description says he lectures on "a study of the nature of democratic government, the U.S. Constitution, federalism, civil rights, political dynamics, the presidency, Congress and the judiciary."

I've found Bob Cantrell to be a personable fellow, and I imagine his class could teach students a whole lot more than a dry textbook. Say what you will about the man, he is no ivory tower egghead. He's got his boots on the ground on the political battlefield.

He's been a fighter all his life. Maybe it's some cosmic irony that the week East Chicago basketball players compete for their first state championship since 1971, Cantrell is indicted.

After all, he was a member of that 1960 East Chicago Washington state championship team and the 1960 winner of the state's Arthur L. Trester Award for Mental Attitude, which rewards "scholarship, leadership and athletic ability in basketball."

He's been a leader, more recently a scholar, and I hear he can still hit the inside of a hoop. Now, he faces his greatest challenge.

There have been others, past and present, like him. Men who preferred to work behind the scenes, much as Cardinal Richelieu preferred to be the power behind the throne of Louis XIII of France, for whom he served as prime minister.

Men like Brad Bodney and Vince Kirrin, neither of whom held elective office but who directed political strategy from behind the curtain. Tom Cappas has worked the same way in East Chicago as a close adviser to Pastrick.

But none of those men were ever indicted. And many (yours truly included) suspected Cantrell never would be, either.

The body of the charges are found elsewhere in The Times. But it appears as though last week's guilty plea by one of Cantrell's employers set the stage for Wednesday's drama.

Nancy Fromm, owner of Addiction and Family Care in Hammond, admitted to hiding income and underreporting business profits. Cantrell was a consultant for Fromm and was the fixer who got her business into some courts in Lake County, including his daughter's.

"We've never had an ethical violation," Fromm told me last week. "But I sure screwed up the money."

Fromm obviously knew which closet Cantrell kept his skeletons in. Now, the feds are going to want to know from Cantrell whose skeletons he can produce.

That rattling you hear isn't the skeletons. It's the teeth of untold local politicians.

03222007 - News Article - Robert Cantrell indicted - ROBERT CANTRELL



Robert Cantrell indicted
NWI Times
Mar 22, 2007
nwitimes.com/news/local/robert-cantrell-indicted/article_d9b33aa1-a781-58e8-b819-174c06058c46.html




HAMMOND | After years of federal scrutiny, renowned political insider Robert Cantrell was indicted Wednesday on 11 felony counts including fraud and tax evasion.

Federal authorities allege Cantrell illegally earned profits from a North Township contract he helped engineer while working for the township and then convinced that contractor to fraudulently add two nonemployees to its health insurance plan.

A federal grand jury Wednesday morning indicted Cantrell on 11 charges -- four counts of honest services fraud, three counts of insurance fraud and four counts of filing false tax returns.

Cantrell declined to comment Wednesday when contacted by The Times, and his attorney could not be reached. Federal authorities say Cantrell is vacationing in Italy, but has arranged to turn himself in for arrest Monday morning, when he could have the option of entering a plea to the charges.

The fraud counts were committed through the mail and involved a total of $150,000 in unreported income and diverted insurance benefits between 2000 and 2004, the U.S. attorney in Hammond alleges.

"It's been no secret for many years that the federal government has been looking at Mr. Cantrell," said North Township Trustee Frank Mrvan, who made canceling the Cantrell-influenced contract one of his first priorities after taking office in 2005.

At the core of both the contract and insurance fraud schemes is the Hammond-based counseling firm Addiction and Family Care. The firm has contracts to counsel employees of various local governments and criminal offenders ordered by local courts to attend drug counseling.

Cantrell, 65, of Schererville, has openly admitted to receiving "referral fees" from the firm, and the indictment states that he even reported some of that income on his taxes.

He reported income of $212,901 in 2003, which would have included his roughly $38,000 salary as an office manager for the North Township poor relief office, federal prosecutors allege.

Prosecutors say Cantrell broke the law when he failed to disclose the financial relationship with the firm to the township after he arranged for the government body to hire Addiction and Family Care to perform mandatory stress counseling for all employees.

Township employees have complained that the sessions were bogus. The indictment alleges that every time one of his fellow township employees attended one of the mandatory sessions, Cantrell received up to 50 percent of the fee collected.

"A public office is not a license to take money from the public," Deputy U.S. Attorney David Capp said Wednesday. "We've got to get a handle on these contracts, and that's primarily what this indictment focuses on."

Less has been made known about the alleged insurance fraud scheme. The indictment alleges Cantrell arranged to have Nancy Fromm put two people who did not work for her firm on the firm's health insurance plan.

The people are not identified or charged in federal court documents. Capp declined to say Wednesday whether the two people were relatives of Cantrell, but he said Cantrell himself was not one of them.

Cantrell has been intimately involved with Lake County machine politics since the 1960s, when he became the on-again, off-again chairman of the East Chicago Republican Party.

Over the years, he has been accused of conspiring with county Democrats to use his influence to weaken the county Republican Party. He eventually was kicked out of the GOP for openly supporting Democrats, including his daughter, Julie, for a county judgeship.

He never has been elected to public office. Observers say his political influence stems partly from his ability to influence candidates to run or not run for office. While a township employee, he admitted to getting homeless and indigent people to vote by absentee ballot and work as Republican poll workers.

Wednesday, March 21, 2007

03212007 - News Article - New indictments looming; corruption is likely target - Announcement has not said if local officials are involved in federal probe - ROBERT CANTRELL



New indictments looming; corruption is likely target - Announcement has not said if local officials are involved in federal probe
Post-Tribune (IN)
March 21, 2007
U.S. Attorney Joseph Van Bokkelen plans to announce a new round of indictments in his ongoing Operation Restore Public Integrity probe of public corruption in Northwest Indiana.

Van Bokkelen's office will make its announcement at 1 p.m. today at the federal courthouse in Hammond.

Restore Public Integrity indictees have included former Gary Clerk and U.S. Rep Katie Hall and her daughter, Junifer, who were convicted on mail fraud charges in 2003, and former Lake County Auditor Peter Benjamin, who was convicted of mail fraud and racketeering later that year.

Recently, prosecutors have indicted Lake County Councilman Will Smith and political insiders Willie Harris and Roosevelt Powell in connection with an alleged land deal in Gary.

Van Bokkelen's news releases seldom hint at the nature of the charges, but few of the news conferences he has hosted since taking office in 2001 have focused on anything but public corruption.

03212007 - News Article - Public integrity indictments today - RESTORE PUBLIC INTEGRITY -- Cantrell is seen as possible target of federal probe - ROBERT CANTRELL



Public integrity indictments today
RESTORE PUBLIC INTEGRITY -- Cantrell is seen as possible target of federal probe
NWI Times
Mar 21, 2007
nwitimes.com/news/local/public-integrity-indictments-today/article_7de63f84-2a7a-5a79-98da-baa8728901d8.html
HAMMOND | Another public corruption indictment is scheduled to be unsealed today as part of U.S. Attorney Joseph Van Bokkelen's Operation Restore Public Integrity, Van Bokkelen's office reported Tuesday.

And political observers across Northwest Indiana say East Chicago political operative Robert Cantrell is a possible target of the federal probe.

The announcement at 1 p.m. today comes just days after politically connected drug-abuse counselor Nancy Fromm pleaded guilty to tax evasion and obstruction of justice. Fromm, a longtime political ally of Cantrell, is cooperating with investigators in exchange for a lighter jail term.

Cantrell's cell phone has not accepted phone calls at least since Thursday afternoon. His attorney and son, John Cantrell, declined to comment on Tuesday's announcement of impending indictments.

Federal officials have declined to speak about the ongoing investigation.

Fromm was targeted by a federal investigation into a pay-for-play scheme in which contracts for government services allegedly were given out in exchange for clandestine payments.

Fromm formerly employed Cantrell as a consultant who used his extensive government connections to bring business to Fromm's firm, Addiction and Family Care, authorities have said.

The firm is among several businesses that have arrangements with county, city and town judges to treat offenders who are ordered to attend counseling for drug and emotional problems.

Van Bokkelen previously has said Fromm was the victim of an extortion plot, although Fromm admitted failing to disclose her true income in 2003 on tax forms and hiding evidence of the income.

The firm's business has suffered from negative publicity surrounding Fromm's indictment, she has said.

Fromm's attorney, J. Michael Katz, of Highland, defended the quality of work that Addiction and Family Care has performed for its clients, saying it was not related to her guilty pleas.

03212007 - News Article - BREAKING NEWS: Robert Cantrell indicted on 11 counts - ROBERT CANTRELL



BREAKING NEWS: Robert Cantrell indicted on 11 counts
NWI Times
Mar 21, 2007
nwitimes.com/news/local/b-breaking-news-robert-cantrell-indicted-on-counts-b/article_511f8bef-d470-59ab-bb4e-14fd91e63aab.html
HAMMOND | The U.S. Attorney this afternoon announced an 11-count indictment against Lake County political operative Robert Cantrell, alleging seven felony counts of fraud and four counts of tax evasion.

In the indictment of the longtime powerbroker of Lake County politics, Cantrell is alleged to partaken in to two illegal schemes.

In the first scheme, Cantrell illegally profited from a contract between drug counseling service Addiction and Family Care and his then-employer, the North Township Trustee's office, the government alleges. Owner of the counseling service, Nancy Fromm employed Cantrell as a consultant who would use his connections in government to generate business for the firm in exchange for per-head "referral fees."

In the second scheme alleged against Cantrell, he arranged for two people to be placed on the health insurance plans of Addiction and Family Care who were not employees of the firm.

Fromm, whose addiction counseling firm has done business with courts all across Lake County, pleaded guilty last week to two federal felonies, admitting to illegally hiding her business profits from a grand jury and then under-reporting her personal income in 2003. The plea sets the stage for Fromm to cooperate with the government in other public corruption probes.

Deputy U.S. Attorney David Capp said the prosecutor will continue to investigate public corruption in the form of contract letting, ghost payrolling and wherever else the investigation takes them.



03212007 - INDICTMENT - Robert J. Cantrell 11 Count Federal Indictment - ROBERT CANTRELL



Robert J. Cantrell 11 Count Federal Indictment
Department Of Justice Press Release
March 21, 2007
justice.gov/archive/tax/usaopress/2007/txdv07Cantrell-press-release.pdf"Cantrell-press-release.pdf


Sunday, March 18, 2007

03182007 - News Article - Prosecutors brush off D.C. sway - Some U.S. attorneys allege political pressure, but locals see none of it



Prosecutors brush off D.C. sway 
Some U.S. attorneys allege political pressure, but locals see none of it
Post-Tribune (IN)
March 18, 2007
If allegations by ousted prosecutors and Democratic congressional leaders are true, and White House officials fired U.S. attorneys for not pursuing corruption cases against Democratic politicians, Joseph Van Bokkelen is a popular man in Washington. 

Conventional wisdom in local political circles is that public corruption largely remains constant from year to year, but that indictments for public corruption vary depending on whether the top federal prosecutor in the Northern District was appointed by a Republican or a Democrat. 

That suspicion seems to be borne out in recent congressional hearings, in which former U.S. attorneys have said they were pressured by Republican leaders to lay off prosecuting GOP officials, and to time the indictments of Democrats to coincide with elections. 

The probe has led to the White House itself, as Bush adviser Karl Rove and Attorney General Alberto Gonzales have been implicated in the scandal. 

Van Bokkelen's wide-ranging corruption probe, Operation Restore Public Integrity, has nabbed more than 50 public officials since he was appointed by Bush in 2001, according to Justice Department statistics. Nearly all were against officials in Democratic strongholds in Lake County, where Republican officeholders are few and far between. 

Through a spokeswoman, Van Bokkelen declined to comment on the Washington scandal. And the conventional wisdom may not bear out, at least in the Northern District. 

Jon DeGuilio, a Clinton appointee who preceded Van Bokkelen as head of the Northern District, convicted 64 defendants in corruption cases from 1992 to 1999. That figure is fewer than the 100-plus corruption cases that resulted in conviction under his Republican predecessor, Reagan appointee James Richmond. 

Both DeGuilio and Richmond this week denied any partisan reasons for pursuing corruption investigations. 

Four of the seven U.S. attorneys fired after President Bush began his second term in 2005 were pursuing prosecutions of Republican officials in their districts, and several have said GOP officials urged them to file charges against Democrats near election time. 

Such pressure was never the case under the Clinton or first Bush administrations, the former U.S. attorneys attest. 

"There was never any political influence or personal influence placed upon me," said DeGuilio, now an officer at Peoples Bank. 

"You don't start calling up the U.S. Attorney's Office and ask to leave someone alone, or wait until after an election. The Department of Justice and individuals in the U.S. Attorney's Office are very, very free of politics." 

Richmond, who presumably would have been safer politically chasing down Democratic pols under Reagan and George H.W. Bush, said public corruption was a focus of his five years because federal investigators had far less jurisdiction to become involved in violent crime and drug and firearm offenses, factors that would change with federal laws instituted in the 1990s. 

The Justice Department also had no Internet, and therefore no cybercrime to deal with, nor was the prosecution of terrorists among U.S. attorneys' top priorities. 

"I had authority to decide what the priorities were in my district. I think the world has changed since 9/11, and Justice wants more involvement in what the U.S. attorneys are doing," said Richmond, now an attorney at a Chicago law firm. 

Political pressure, such as the allegation by a New Mexico U.S. attorney fired by the Bush administration that a senator urged him to indict a Democratic rival before an election, was unheard of, Richmond said. 

"In my time as U.S. attorney, (Republicans) Dick Lugar and (Dan) Quayle were senators, and I had one conversation with each of them. All I ever heard was, 'Do the right thing,' " he said. 

DeGuilio said prosecution of drug dealers and violent offenders was the top priority of the Clinton Justice Department, and initiatives like the Gary Response Investigative Team to target drug trafficking and gangs were the premier accomplishments of his administration. 

"We were doing violent crime (indictments) in unprecedented numbers," DeGuilio said. "We may not have had as many public corruption prosecutions as Joe Van Bokkelen, but there were a number of public corruption prosecutions that we initiated." 

DeGuilio won conviction of Lake County Recorder Robert Freeland for shaking down title companies that dealt with his office. He also won less favorable headlines after two Gary City Council members indicted on bribery charges were acquitted. 

Both Richmond and Van Bokkelen, who once were partners in a Highland law firm, also have proved more media savvy in promoting their anti-corruption campaigns. 

Richmond chose a more catchy name for his corruption probe than Van Bokkelen, dubbing his initiative Operation Lights Out. 

"It was as in 'Would the last indicted politician out of Lake County please turn out the lights?' " Richmond said. "One of the FBI guys came up with the name, and it just took on a life of its own." 

Van Bokkelen's probe also got off to a fast, highly publicized start and has struck at some of the most powerful Democratic organizations in the region. 

While Sept. 11, 2001, steered Justice officials almost exclusively to anti-terrorist investigations shortly after his appointment, in 2002, he indicted Gary City Clerk Katie Hall and her daughter, Junifer, for extorting campaign contributions from her staff. 

His indictment of the "Sidewalk Six" East Chicago officials in 2003 undoubtedly helped topple the three-decade-old political machine led by Robert A. Pastrick in 2004. 

Pastrick , who lost a special mayoral election -- prompted by a state-level vote fraud lawsuit -- claimed the indictments of the Sidewalk Six, as well as his son, Kevin , for a crooked real estate deal, were timed to depress Democratic turnout in the 2004 elections. Van Bokkelen has adamantly denied any political consideration. 

As to why Republican appointees have brought charges against so many Democrats, Richmond offers a hypothesis. 



"We prosecuted Republicans, too," he notes. "It just so happens statistically in Lake County, Indiana, you don't have a lot of Republican public corruption because you don't have many Republicans." 

Saturday, March 17, 2007

03172007 - News Article - After Fromm, all eyes on Cantrell - ROBERT CANTRELL



After Fromm, all eyes on Cantrell
NWI Times
Mar 17, 2007
nwitimes.com/news/local/after-fromm-all-eyes-on-cantrell/article_0e091b80-adcd-5975-908b-16e8dcdc4245.html
With government contractor Nancy Fromm working with federal investigators, many eyes in the Northwest Indiana political world have turned to self-described "politico" Robert Cantrell.

Neither Fromm nor prosecutors have made any statements about her case since Fromm pleaded guilty Thursday to two counts of obstruction of justice and tax evasion. Under the plea agreement, Fromm could receive a more lenient sentence if she cooperates with authorities.

"Neither of these cases question the quality of the services provided by Nancy and her devoted staff to her clients," defense attorney J. Michael Katz said. "She has always demonstrated the highest level of professionalism in (how) she has counseled and assisted those clients."

Fromm, 66, has been involved in politics her whole life. Although her felony convictions will prevent her from voting, it was not clear how the convictions will affect her job as precinct committeewoman in the Hammond.

Her counseling business, Addiction and Family Care, does business with town, city and state courts across the county as one of the handful of places where criminal defendants can receive court-ordered counseling for addictions and emotional problems.

Although Fromm was the target of a sweeping pay-for-play investigation, she was not charged with influence peddling. She once admitted to being extorted by former Schererville Town Judge Deb Riga.

Fromm employed Cantrell as a consultant who would use his connections in government to generate business for the firm in exchange for per-head "referral fees."

Cantrell has said the fees were legal. His cell phone was not accepting phone calls Friday.

East Chicago City Judge Sonya Morris and Lake Superior Court Judge Jesse Villalpando have both said Cantrell pressured them to order their criminal defendants to attend Fromm's counseling services.

Villalpando said he refused, while Morris uses the company as one of several options offered to offenders.

But some political observers said they did not believe Cantrell was not likely to be indicted for anything blatant.

"The thought that everything he does is illegal, I don't think that's true, or they would have had him a long time ago.

Friday, March 16, 2007

03162007 - News Article - Fromm plea deal shifts focus to political insider - Cooperation could give more information about role of Robert Cantrell - ROBERT CANTRELL



Fromm plea deal shifts focus to political insider 
Cooperation could give more information about role of Robert Cantrell
Post-Tribune (IN)
March 16, 2007
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/11846E2D4A199DF8?p=AWNB
A plea agreement by a minor player in several political scandals has Lake County government officials buzzing about the future of political fixer Robert Cantrell.

Nancy Fromm, whose drug counseling service had contracts with more than a dozen county courts and government entities, pleaded guilty Thursday to a single count of obstruction of justice and a tax evasion charge filed by federal prosecutors Wednesday afternoon.

Court observers have said Fromm's indictment a little more than a year ago was an attempt by prosecutors to pressure her for information on Cantrell's role in her company's success in winning government business from office-holders tied to Cantrell.

In her plea agreement Fromm agreed to cooperate with federal investigations, but her attorney, J. Michael Katz, said the language is standard for deals with federal prosecutors and noted the government had not dropped or reduced any charges against his client.

"This has nothing to do with Bob Cantrell. This only has to do with what Nancy did," Katz said. "You cannot get a plea agreement out of the government without that language. There is nothing unique about it as it relates to Nancy."

Fromm's Addiction and Family Care was at the center of the federal investigation of former Schererville town judge Deborah Riga, who pleaded guilty of extorting money from court contractors. Prosecutors dropped a charge she allegedly demanded $2,000 from Fromm to steer court business to Addiction and Family Care.

The company also had contracts with Superior Court Judge Julie Cantrell, Robert Cantrell's daughter. Judge Jesse Villalpando has complained Cantrell has backed Villalpando's rivals in recent elections in part because he has refused to award contracts to Fromm.

Fromm's obstruction of justice indictment came after she did not hand over more than 10,000 handwritten index cards detailing her income from the counseling program after all documents related to her business finances were subpoenaed by prosecutors in 2005. She also pleaded guilty to stating the income from her business was $35,000 on her 2003 federal tax return, when in fact the figure was "materially greater."

Assistant U.S. Attorney Wayne Ault would not comment on any deal with Fromm. In the past, U.S. Attorneys have not reduced or dropped charges against indictees who later testify or provide information in other investigations.

However, prosecutors have agreed to delay the sentencing in plea deals, then recommend a reduction.

03162007 - News Article - Fromm pleads guilty to federal felonies - FROMM -- Head of counseling firm agrees to aid in other investigations - ROBERT CANTRELL



Fromm pleads guilty to federal felonies
FROMM -- Head of counseling firm agrees to aid in other investigations
NWI Times
Mar 16, 2007
nwitimes.com/news/local/fromm-pleads-guilty-to-federal-felonies/article_8cf8c89a-0a84-55f6-b45e-c8db3967fba2
HAMMOND | Nancy Fromm, whose addiction counseling firm has done business with courts all across Lake County, pleaded guilty Thursday to two federal felonies.

In a plea agreement, Fromm admitted to illegally hiding her business profits from a grand jury and then under-reporting her personal income in 2003. The plea sets the stage for Fromm to cooperate with other federal investigations into alleged public corruption.

Fromm faces up to 13 years in federal prison when she is sentenced in June, although prosecutors agreed to recommend a more lenient sentence in exchange for her cooperation with a continuing investigation.

Fromm's Hammond business, Addiction and Family Care, received a subpoena in July 2005 from a federal grand jury investigating allegations that businesses were paying kickbacks in exchange for government contracts.

Fromm, a politically connected Democrat, has given thousands in political donations over the years and has received business referrals from many of the judicial candidates whose campaigns she supported.

Investigators said Fromm admitted to being extorted for kickbacks by former Schererville Town Court Judge Deb Riga, who pleaded guilty to mail fraud last year and also is cooperating with investigators to receive a shorter sentence.

Fromm also employed political figure Robert Cantrell to use his connections in government to generate more business for Fromm's firm, authorities said.

Cantrell has not been charged with a crime and has insisted the fees he collected from Fromm were legitimate.

Fromm was never charged with taking part in a pay-to-play scheme. U.S. Attorney Joseph Van Bokkelen has called her a "victim" in the Riga scheme.

But she admitted to U.S. District Judge Rudy Lozano on Thursday that she deliberately withheld from the grand jury more than 10,000 "client cards" that showed exactly how much money her firm was earning from its clients.

She was indicted for obstruction of justice one year ago. A charge of tax evasion was added Wednesday, the night before she pleaded guilty to it. She said in court Thursday her personal income was higher than the $35,000 she reported.

"I deliberately withheld the client cards because I knew they would show more income than I reported," Fromm told Lozano Thursday.

Fromm, is the sole owner of Addiction and Family Care. She has said the indictment severely damaged her 10-year-old business, which gets many of its clients through court orders for counseling.