03312009 - News Article - Cantrell sentenced to prison, restitution - ROBERT CANTRELL

Cantrell sentenced to prison, restitution
NWI Times
Mar 31, 2009
nwitimes.com/news/local/cantrell-sentenced-to-prison-restitution/article_511ffe51-89bc-53cc-94bc-02167420d5f4.html
HAMMOND | U.S District Judge Rudy Lozano sentenced former Democratic power broker Robert Cantrell on Tuesday to 6 and 1/2 years in federal prison.

Finishing Cantrell's long-delayed sentencing in Hammond federal court, Lozano seemed unconvinced by defense attorney Kevin Milner's portrayal of the 67-year-old Cantrell as a benevolent patriarch, good samaritan and patriot who deserved no prison time for his 11 fraud convictions.

Milner argued Cantrell's crimes were "victimless," because Cantrell, a former political fixer based in East Chicago, can pay back the $68,000 he took from North Township through contract fraud.

Lozano disagreed. He blasted Cantrell - a Schererville resident -- as a "blessed" man who used his talent to steal from taxpayers.

"You were ahead of what most people had," Lozano told Cantrell. "But from the evidence in this case, it also appears that you fell into that ditch called politics."

Lozano sentenced Cantrell to 78 months in prison to be followed by three years of supervised release. Lozano ordered Cantrell to repay $68,000 to North Township. Cantrell must report for prison May 13.

Milner said outside court that he planned to file appeals to Cantrell's conviction and sentence Tuesday afternoon.

Cantrell was convicted June 6 of four counts of depriving the public of honest services, three counts of insurance fraud using the U.S. mail and four counts of filing false income tax returns between 2000 and 2003. The indictment accused him of taking cash kickbacks from a contract between his then-employer, the North Township trustee's office, and a political ally's company.

North Township Trustee Greg Cvitkovich's office paid the company to run adult education classes that were "seemingly useless," Lozano said.

The sentencing was delayed almost ten months, most recently so that Lozano could review trial transcripts for evidence relevant to Milner's objections to sentence enhancements proposed in a presentence report prepared by probation agents.

03302009 - News Article - Dozier Allen corruption trial to begin

Dozier Allen corruption trial to begin

Post-Tribune (IN)
March 30, 2009

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HAMMOND -- The trial of former Calumet Township Trustee Dozier T. Allen Jr. begins today, the last of the pending cases in Operation Restore Public Integrity, the U.S. attorney's long-running federal probe of public corruption in Northwest Indiana. 

During 32 years as head of the poor relief office serving Gary, Griffith and surrounding unincorporated areas, Allen's name became synonymous 

But during his final years in office, federal prosecutors allege that Allen and three of his top deputies paid themselves $140,000 to administer $170,000 in government grants intended to pay for job training for the needy. 

Allen was indicted in 2007, less than a year after he made an unsuccessful run for Gary mayor in a special election following Scott L. King's resignation. King, one of the region's top criminal defense attorneys before becoming mayor, will represent Allen at trial. 

Other prominent political figures will join Allen in the courtroom. Co-defendant Anne Marie Karras is married to former Township Board member Ted Karras and is the sister in-law of Lake County Assessor Paul Karras, and co-defendant Wanda Joshua is the mother of current Gary City Councilwoman Kim Robinson, and Joshua's attorney is former Indiana Attorney General and two-time Gary mayoral candidate Karen Freeman-Wilson. Albert Young, named as a co-defendant in the indictment, will be tried separately because his attorney was ill and would not be able to participate in the trial as scheduled. 

Assistant U.S. Attorney Gary Bell has had a hand in several high-profile Restore Public Integrity prosecutions, including East Chicago sidewalk-for-votes scheme, the investigation of the Gary Urban Enterprise Association, and former Lake County Council President Will Smith and political fixer Willie Harris. 

Under former U.S. Attorney Joseph Van Bokkelen and his successor, current U.S. Attorney David Capp, more than 40 public-corruption defendants have been convicted or entered guilty pleas. No defendant has been acquitted. 

Allen's son, Kyle Allen Sr., is an at-large city councilman , and ran for trustee himself in 2007 against Mary Elgin, who defeated Allen in the 2002 Democratic primary. Dozier Allen at the time faced criticism following a series of Post-Tribune articles that showed the township payroll was heavy with Allen's relatives and political allies. 

* All-star cast expected to join former township trustee in courtroom. 

Dozier Allen and three of his top deputies accused of paying themselves $140,000 to administer $170,000 in government grants intended to pay for job training for the needy. 

03062009 - News Article - Investigation ongoing into title insurance company - Gary official denies role in missing money

Investigation ongoing into title insurance company 
Gary official denies role in missing money

Post-Tribune (IN)
March 6, 2009 

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A case of lost cash. 

"I was the one that shut the company down." 

-- Jacquelyn Drago - Hunter ,  Gary's director of community development 

*Gorman Ginn thought the first mortgage on his Miller home had been paid off in 2006. So when a collection agent called two years later to ask why he'd stopped making his payments, Ginn was more than a little surprised. "What payment?" Ginn asked. 

A title insurance company ended up paying the mortgage off. Then it asked the Indiana Department of Insurance to file a cease and desist order against Gary-based Maximilian Title Corp., claiming as much as $400,000 meant to pay off mortgages for clients like Ginn went missing there. 

Jacquelyn Drago - Hunter , Gary's director of Community Development, is a former board member at Maximilian Title. She denies any connection to the lost cash, explaining that a pair of employees who are now deceased absconded with it. 

Last month an attorney for the Indiana Department of Insurance wrote a letter to Ginn. She said his case is part of a litigation file being prepared for Maximilian, and he might be called as a witness. 

Caption: Norman and Willena Ginn thought they had paid the debt on their Gary home to their mortgage company until a collector called and asked them to resume making payments. This is the home owned by Norman Ginn and his wife, Willena Ginn, in Gary's Miller section. photos by Scott M. Bort/Post-Tribune 

03062009 - News Article - City worker tied to bad loans

City worker tied to bad loans

Post-Tribune (IN)
March 6, 2009 

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GARY -- Gary's director of Community Development helped run a now-defunct title company where as much as $400,000 meant to pay off clients' mortgages went missing, records show. 

Jacquelyn Drago - Hunter , who now oversees millions in federal dollars in her position with the city, denies playing any role in the scheme at Maximilian Title Corp. 

State filings list Drago - Hunter as Maximilian's secretary and one of its principals. Elsward Hunter , her husband and president of the company, died in 2007. 

Indiana Commissioner of Insurance James Atterholt ordered Maximilian to cease and desist all business in June after its underwriter accused it of "improperly withholding, misappropriating, or converting monies received in the course of doing insurance business." 

Drago - Hunter was the settlement agent in at least two documented cases. A letter written by an attorney for the Indiana Department of Insurance to one victim last month suggests the issue could spill back into court. 

"Your presence as a witness may be requested," attorney Kathy Hulbert told Miller resident Norman Ginn Jr. 

Drago - Hunter said the missing money was taken by two employees she wouldn't name and who she said are now deceased. She said she isn't aware if a police report was ever filed against the thieves, but she said she is the person who uncovered the discrepancies and told the underwriter. 

"I was the one that shut the company down," Drago - Hunter said. 

'What payment?' 

Norman Ginn and his wife, Willena Ginn, visited Maximilian's offices at 5th Avenue and Broadway in 2006 when they decided to refinance the mortgage on their Miller home. Wells Fargo, the bank doing the refinancing, referred them to Maximilian. 

The meeting was cordial. Drago - Hunter notarized the new $73,000 mortgage for the Ginns and the Ginns considered their first mortgage debt satisfied. 

Two years later, the Ginns' phone rang. It was a collection agent, wondering why the couple stopped making payments on that debt. 

Norman Ginn's response: "What payment?" 

"After two years, you know, I had totally forgotten about it," Norman Ginn said. 

According to court records filed in July, the Ginns still owed $51,792 in principal on their 2001 mortgage. Collectors came down hard on the couple, Norman Ginn said, threatening to kick them out of their home. 

"They were real nasty," Norman Ginn said. "They wouldn't listen to a word I had to say." 

Maximilian dissolves 

The Ginns were forced to hire an attorney to help them clean up the mess. United General Title Insurance Co. wrote a check for $59,047 to pay off the original loan with interest, documents show, terminated its contract as Maximilian's underwriter and called the Indiana Department of Insurance. 

Hulbert, an attorney in the department's title division, petitioned for a cease and desist order against Maximilian on June 5. 

According to that petition, United General said Maximilian continued making monthly payments on clients' mortgages instead of paying them off. Mike Trimble, a title division investigator, filed an affidavit confirming that claim. 

"United General has reported that the missing funds total between $300,000-$400,000," Hulbert wrote in her petition. 

Commissioner Atterholt granted the order the next day. By then, however, state records show Maximilian had voluntarily dissolved. The case appeared to be dormant until last month, when Hulbert mailed Ginn a letter. 

"I am pleased that there was a successful resolution of your title insurance issue, and I am closing your file," Hulbert wrote. "It will become a part of the litigation file that I am preparing for Maximilian Title." 

Stephen Robertson, director of the Indiana Department of Insurance's title division, declined to comment this week on the specifics in the Maximilian case beyond the public record. He said his office has no law enforcement authority, but it can take several regulatory actions against an agency. 

Robertson also said his office could refer a situation to state or local law enforcement agencies. 

"We want to make sure that we have a basis to do so," Robertson said. 

A United General representative said the company doesn't comment on pending litigation. Frank Jury, Drago - Hunter 's attorney, declined comment as well. 

Drago - Hunter , meanwhile, said she's received no correspondence from United General or the Indiana Department 

"Obviously, I'm not a part of it because I don't have a letter from them," Drago - Hunter said. "I'm sure that if I were guilty of anything I'd be getting some letters." 

Lake-front property 

The Ginns weren't the first homeowners to have trouble with Maximilian Title. A similar problem nearly scuttled the sale of a house on County Line Road overlooking Lake Michigan, according to court documents. 

Anna Panagiotaros refinanced that home in 2003, records show, closing the deal in the same office as the Ginns and working with the same closing agent: Drago - Hunter . 

Drago - Hunter denied ever being a co-owner of the company, despite her identification as such in Panagiotaros' complaint. She said she was merely a board member. 

Panagiotaros expected $254,104 owed to Washington Mutual Home Loans for the mortgage on that property to be paid off, but Washington Mutual said it was still receiving monthly payments on the mortgage one year later, court records show. 

Meanwhile, a buyer had committed to purchasing the home from Panagiotaros, according to one filing, but the sale couldn't go through until Washington Mutual released the mortgage. 

The case was eventually dismissed with prejudice after Maximilian wired $254,212 to Washington Mutual to pay off the mortgage, records show, and Panagiotaros transferred the property to a new owner through a warranty deed in July 2004. 

The title division of the Indiana Department of Insurance didn't exist until 2006, Robertson said, and the Panagiotaros case doesn't appear to be a part of Hulbert's file. Panagiotaros declined to comment for this story. 

Drago - Hunter pointed to her dismissal from that case as proof of her innocence. She again insisted that the employee who took the money died before the scam was uncovered. 

"There was nothing you can do about that," Drago - Hunter said. "What are you going to recover?" 

* Drago - Hunter worked at company that didn't pay off mortgages.

Caption: Jacquelyn Drago - Hunter (right), Gary's director of community development, mingles before the State of the City address at the Genesis Convention Center in Gary on Feb. 24. Stephanie Dowell/Post-Tribune 

03062009 - News Article - Political power broker Robert Cantrell's sentencing on federal corruption charges will be delayed again - ROBERT CANTRELL

Political power broker Robert Cantrell's sentencing on federal corruption charges will be delayed again
Post-Tribune (IN)
March 6, 2009
HAMMOND -- Political power broker Robert Cantrell's sentencing on federal corruption charges will be delayed again, but it looks like federal prosecutors plan to push for a harsh sentence.

After hearing more than two hours of arguments from attorneys Thursday, U.S. Judge Rudy Lozano delayed his ruling on how long Cantrell should serve in prison. After a lengthy sidebar, Lozano set a March 31 date for Cantrell's sentencing to allow attorneys to review testimony from Cantrell's June 2008 trial.

Found guilty of seven counts of honest services fraud and four tax counts, Cantrell has won several delays while trying to appeal the verdict. He faces a maximum of 20 years in prison on each of the fraud counts and up to three years for each of the tax charges.

Cantrell's attorney, Kevin Milner, had objected to a potential sentence that included more than $68,000 in restitution and additional jail time because Cantrell committed crimes as a high-ranking public official.

Cantrell, a longtime East Chicago schools official and political operative with ties to dozens of Lake County politicians, failed to disclose fees he collected from a counseling service he helped win lucrative contracts with local courts and government agencies -- including a deal between the firm and the North Township Trustee's Office, where he held various positions.

U.S. Attorneys Orsest Scziciw and Wayne Ault maintained Cantrell owed the township his share of the money paid to Addiction and Family Care because Trustee Greg Cvitkovich wouldn't have hired the firm without Cantrell's influence. They also argued that Cantrell should get a harsher sentence because he led his business partner in AFC, Nancy Fromm, to commit a criminal act by continuing the deal and by having her add his two adult children to AFC's insurance plan, although neither did any work for the company.

Milner argued that township employees testified Cantrell was seldom at work and seemed to have no job responsibilities

"If I understand (their) evidence, Mr. Cantrell's position at North Township was a sham, and he's just there to enrich himself," Milner said. "Now they're saying he's in a position of authority and deserves to be jacked up (for additional jail time) four levels."

The argument didn't seem to play well with Lozano, who took the statement as an admission that Cantrell essentially was a ghost-payroll employee.

"He may have been a bad employee," Lozano said. "But that doesn't mean he didn't have authority."

Sentencing in federal corruption case
Caption: Robert Cantrell (left) arrives with his son John Cantrell (center) and attorney Kevin Milner on Thursday at the Federal Courthouse in Hammond. Cantrell's sentencing hearing was delayed until March 31.Judge delays Cantrell sentencingStephanie Dowell/Post-Tribune

03062009 - News Article - Lawyer: Cantrell not cooperating with feds - Sentencing delayed to end of the month - ROBERT CANTRELL

Lawyer: Cantrell not cooperating with feds
Sentencing delayed to end of the month
NWI Times
Mar 6, 2009
nwitimes.com/news/local/lawyer-cantrell-not-cooperating-with-feds/article_e4c047d7-46e4-511f-abaf-cd753afeba30.html

HAMMOND | Former Democratic powerbroker Robert Cantrell is "absolutely not" cooperating with state or federal investigations in hopes of reducing his federal fraud sentence, Cantrell's defense attorney said Thursday.

"He is not cooperating in any federal investigations of any kind, nor state, nor has he ever," attorney Kevin Milner said in response to a question from The Times.

The comments came as Milner and Cantrell exited the Hammond federal courthouse following a hearing in Cantrell's criminal case.

Cantrell's sentencing was delayed again Thursday, adding to a nine-month run of postponements. Cantrell, 67, of Schererville, was convicted June 6 of 11 federal counts involving kickbacks, fraud and false income tax returns. U.S. District Court Judge Rudy Lozano continued the hearing until March 31 so Lozano can review trial transcripts for evidence that might factor into Cantrell's sentence.

In a courtroom packed with Cantrell's family and interested onlookers, the prosecution, defense and Lozano sparred over the sentence Cantrell deserves under federal sentencing guidelines.

Thursday's hearing, like the trial, focused on Cantrell's employment with the North Township trustee's office and his connection to Addiction and Family Care Inc. The counseling service paid Cantrell to connect the business to government clients, one of which was North Township.

Milner objected to several sentencing enhancements proposed in the confidential pre-sentence report by probation authorities. Milner argued Cantrell does not deserve a sentence enhancement for being a high authority in the North Township office because Cantrell was not the "big boss man." Milner said this seemed to contradict the prosecution's trial argument that Cantrell worked infrequently at a "sham" job in the township office.

"And now they're saying he's a heavy duty guy?" Milner said outside court.

Assistant U.S. Attorney Orest Szewciw disagreed on Cantrell's authority in the office of North Township Trustee Greg Cvitkovich. Cantrell had authority in the office even before he was hired to work there, Szewciw said. The prosecution showed "plenty of evidence" of Cantrell's influence, Szewciw said. Szewciw also noted that Milner appeared to be saying Cantrell got paid for not showing up.

"Your honor, I think Mr. Milner just admitted that his client was a ghost pay-roller for five years at the North Township office," Szewciw said.

Milner also argued against Cantrell having to pay restitution and face sentencing enhancements related to the counseling contract. Szewciw insisted the enhancements are appropriate, although most discussion Thursday was between Milner and Lozano, who fired rigorous, sometimes wry questions at Milner over his contention that Cantrell had little official authority at North Township.

"That doesn't mean he didn't have the authority to do certain things," Lozano said.

Lozano decided, after more than 90 minutes of arguments, that he needs to review the trial transcripts for testimony about Cantrell's work at the township. The hearing is scheduled to resume March 31, but Lozano said he could move up the date.

It is unclear how much prison time Cantrell might face.

Cantrell offered no comment as he walked out of court. His daughter, Lake Superior Court Judge Julie Cantrell, said the family also did not want to comment.

03052009 - News Article - Cantrell sentence delivered today - ROBERT CANTRELL

Cantrell sentence delivered today
Post-Tribune (IN)
March 5, 2009
HAMMOND -- Political insider Robert J. Cantrell, friend, confidante and adviser to Lake County politicians for decades, will be sentenced to prison time today.

Cantrell, who made his name as the sharpshooting star of East Chicago Washington High School's 1960 state championship team, has spent four decades as one of the most influential political players in Northwest Indiana.

His downfall came last spring, when he was convicted on seven counts of fraud and four counts of tax evasion for reportedly collecting hundreds of thousands of dollars from a counseling company that he helped win lucrative contracts with government agencies.

Cantrell, 66, faces a maximum sentence of 20 years on each fraud count and up to three years on each tax count.

The potential for a lengthy jail term, and the long delay between Cantrell's trial and his sentencing date, have led some to speculate that the master deal maker was trying to cut a bargain with prosecutors.

Prosecutors have protested Cantrell's requests for new sentencing dates, meaning he likely is not cooperating with other investigations. And those who know Cantrell well say he is a product of a rougher era of politics, a time in which, paradoxically, the players were both more deceitful and more honorable.

"Bobby won't talk. That's not how he is," said Byron "Duke" Florence, a longtime political operative who worked with, and sometimes against, Cantrell.

What Cantrell might have to talk about, Florence and other politicians can only guess.

"He touched every elected official in the county in one way or another, negative or positive," Florence said. "He knows everyone."

Cantrell's reputation was laid out during his trial, with former-business-partner-turned-prosecution-witness Nancy Fromm testifying that Cantrell provided her Addiction and Family Care counseling service with numerous contracts in exchange for half the company's income. Prosecutors alleged Cantrell did not report more than $100,000 in income he earned from AFC. 

Fromm and Cantrell also committed insurance fraud by putting Cantrell's daughter and son on the insurance plan for full-time employees of AFC.

By the time Fromm was indicted for fraud, AFC had contracts with courts in East Chicago, Schererville, Hammond and even the Lake County court run by Cantrell's daughter, Judge Julie Cantrell. Prosecutors made no allegations of impropriety regarding those contracts and Cantrell claimed he was neither paid nor lobbied for his daughter's business.

Fromm's contract with the North Township trustee, where Robert Cantrell worked as manager of the trustee's Indiana Harbor office, formed the heart of the prosecution's case. Under state law, Cantrell should have disclosed his financial stake in AFC to township officials. 

Cantrell said he never lobbied former Trustee Greg Cvitkovich for business while he was an employee, but AFC offered a series of classes to township employees on such topics as "How to Stop Procrastinating." 

None of Cantrell's political allies have mailed letters to Judge Rudy Lozano asking for leniency or testifying to the decorated Army veteran's good works. And it is unclear if Cantrell's attorneys will call character witnesses.

"That's a shame," said Florence. "I doubt if Bobby is surprised by it, because he knows the game. But I'd be surprised if he wasn't hurt."

03052009 - News Article - Attorney: Cantrell not cooperating with authorities - ROBERT CANTRELL

Attorney: Cantrell not cooperating with authorities
NWI Times
Mar 5, 2009
nwitimes.com/news/local/attorney-cantrell-not-cooperating-with-authorities/article_5d6836da-61f8-554e-a3de-c5e18d5fa5d0.html

Hammond - Moments after a Hammond federal judge delayed the sentencing of Robert Cantrell, an attorney for the convicted political powerbroker said his client is "absolutely not" cooperating with any federal investigations.

"He is not cooperating with in any federal investigations of any kind, nor state, nor has he ever," defense attorney Kevin Milner said in response to a question from The Times.

Milner answered the question while leaving the Hammond federal courthouse with his client following Thursday's hearing. After hearing arguments from attorneys, U.S. District Court Judge Rudy Lozano decided he needs until March 31 before imposing a sentence.

Cantrell, a former Democratic operative, was convicted on June 6 of 11 federal counts involving kickbacks and fraud. Cantrell, 66, of Schererville, was charged with four counts of depriving the public of honest services, three counts of insurance fraud using the U.S. mail and four counts of filing false income tax returns between 2000 and 2003.

Federal authorities have said Cantrell took kickbacks linked to a contract between his then-employer, the North Township trustee's office, and his political ally, Nancy Fromm, who ran an addiction counseling service.

Cantrell did not take the stand in his own defense.

Before Thursday's hearing, attorneys for Cantrell had filed six motions that pushed back court proceedings after June 6, the day a jury convicted the East Chicago-based Democratic operative of 11 counts involving kickbacks and fraud. No new motions were filed this week in the federal courts online database.

Between June and October, Milner filed four successful motions for more time to seek a new trial. Milner moved for a new trial in October, claiming no witness ever formally identified Cantrell during his trial. Judge Rudy Lozano rejected that argument.

It is unclear how much prison time Cantrell might face. His sentence will depend on sentencing guidelines, arguments by the prosecution and defense and a pre-sentence report from probation officials. That report remained confidential before the hearing.

03052009 - News Article - Stage appears set for Cantrell sentencing - ROBERT CANTRELL

Stage appears set for Cantrell sentencing
NWI Times
Mar 5, 2009
nwitimes.com/news/local/stage-appears-set-for-cantrell-sentencing/article_c2e67fa2-355e-51c5-a4ba-ec48150098cb.html
Former political fixer Robert Cantrell is due in Hammond federal court Thursday morning for his long-delayed sentencing on federal corruption charges.

Attorneys for Cantrell, 66, of Schererville, filed six motions that pushed back court proceedings after June 6, the day a jury convicted the East Chicago-based Democratic operative of 11 counts involving kickbacks and fraud. No new motions were filed this week, according to the federal courts online database.

Between June and October, defense attorney Kevin Milner filed four successful motions for more time to seek a new trial. Milner moved for a new trial in October, claiming no witness ever formally identified Cantrell during his trial. Judge Rudy Lozano rejected that argument.

It is unclear how much prison time Cantrell might face. His sentence will depend on sentencing guidelines, arguments by the prosecution and defense and a pre-sentence report from probation officials.

That report remained confidential before Thursday's hearing.

03032009 - News Article - After long delay, Cantrell set for sentencing - No motions filed to further delay decision - ROBERT CANTRELL

After long delay, Cantrell set for sentencing
No motions filed to further delay decision
NWI Times
Mar 3, 2009
nwitimes.com/news/local/after-long-delay-cantrell-set-for-sentencing/article_c201b919-57da-5f93-a3a9-6ae955e8db96.html
After eight months of delays, backroom political fixer Robert Cantrell faces a possible federal prison sentence Thursday.

Cantrell's defense has filed six motions that pushed back court proceedings since June 6, the day a Hammond federal court jury convicted the East Chicago Democratic operative of 11 counts involving kickbacks and fraud. As of Monday, no new motions were filed that would further delay sentencing.

"We're prepared to proceed on Thursday," said acting U.S. Attorney David Capp.

Defense attorney Kevin Milner did not return calls for comment.

Between June and October, Milner filed four successful motions for more time to seek a new trial. Milner moved for a new trial in October, claiming no witness ever formally identified Cantrell during his trial. Judge Rudy Lozano rejected that argument.

It is unclear how much prison time Cantrell, 66, of Schererville, might face. Theoretically, Lozano could sentence Cantrell to time that would long exceed his life span, but his actual sentence will depend on sentencing guidelines, arguments by the prosecution and defense and a pre-sentence report from probation officials. That report remains confidential.

Neither Capp nor assistant U.S. attorneys Orest Szewciw and Wayne Ault would say Monday what type of sentence they will seek Thursday.

Capp, Szewciw and Ault also would not say whether Cantrell's sentence could be mitigated by potential cooperation with other federal investigations.

Hammond Mayor Thomas McDermott Jr., a Cantrell family friend and Democratic insider, said that if other Democrats think Cantrell is talking to the feds, those politicos aren't discussing the issue.

"Nobody's even really talking about the Cantrell sentencing," McDermott said.

Cantrell's legacy in Lake County politics is complicated, said Dan Lowery, a political commentator and vice president for academic affairs at Calumet College of St. Joseph. Cantrell's "egregiously awful" reputation makes him seem unique in local politics, Lowery said.

But even if Cantrell is unusual, corrupt politicians remain, Lowery said. Lowery doubts corrupt officials have been chastened by the "phenomenal" anti-corruption work of Capp and former U.S. Attorney Joseph Van Bokkelen.

"Bobby Cantrell is kind of a poster child for Lake County politics, the worst kind of Lake County politics," Lowery said. "This is a guy who made it into a sport."

03022009 - News Article - Dalton Arms project languishes

Dalton Arms project languishes

Post-Tribune (IN)
March 2, 2009

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GARY -- Millions of tax dollars and more than a decade after talk of restoring the dormant downtown structure began, little information seems to be available about the status of repairs at the Dalton Apartments building. 

Shawn Loyden, managing member of Florida-based Gary Progress Development LP, hasn't returned several phone calls about his work at the building in the 100 block of East 5th Avenue, despite signs of new construction. 

Mayor Rudy Clay referred questions about the project to Gary-East Chicago-Hammond Empowerment Zone Director Scott Upshaw. 

"The project was moving along as far as I knew," Upshaw said. 

Upshaw and Jacquelyn Drago - Hunter , director of Gary's Community Development department, said their offices have invested a combined $5.4 million in federal funds into the project. 

The developers are expected to pay back the $2.5 million Empowerment Zone loan in July, Upshaw said. Drago - Hunter , however, said payments on her office's $2.9 million loan will be made secondary to a private bank's investment. 

Payment will also depend, Drago - Hunter said, on completion of construction. Viewings of the building's units were supposed to begin as early as this month, Upshaw said. He and Drago - Hunter estimated work there to be 50 percent to 65 percent complete. 

No definite completion date was given, though. 

"You probably should talk to Shawn Loyden," Drago - Hunter said. 

For more than 10 years, various developers talked about renovating the empty building. Several bonds and loans have been issued, but it still stands empty. Loyden took over the project in 2003. 

In 2005, Loyden said he would restore the 1928 Art Deco building to serve as a 57-unit apartment building with restaurants and businesses on the ground floor. He said he hoped to finish the work as early as 2007. 

"As of right now, because of the Wall Street cave-in, we can ask for an extension if a project needs additional time," Drago - Hunter said. 

* Renovation moves slowly despite infusion of  federal funds over the years. 

Caption: Construction continues on the former Dalton Arms building on 5th Avenue in Gary. Up to $5.4 million in federal funding has gone into the project. Hopes of completing restoration of the 1928 Art Deco building as early as 2007 have been dashed. Scott M. Bort/Post-Tribune