04242014 - 3 years since Cynthia Cashner's murder...

Three years ago today, Portage Indiana domestic violence victim Cynthia Cashner was slaughtered by her AK-47 welding ex-husband Frederick Cashner. She had just filed for divorce and was terrified that her ex would kill her.

Cynthia's case was before Porter County Superior Court Magistrate James Johnson – who had previously been reported for his failure to protect domestic violence victims who sought divorces in his court.

Cynthia's murder may have been prevented if Porter County and Portage City officials had chosen to protect domestic violence victims, instead of protecting a Magistrate who failed to protect victims...

Domestic Violence murder of Cynthia Cashner - Portage

04212014 - News Article - Judge seals report in Soderquist case

Judge seals report in Soderquist case
NWI Times
April 21, 2014 - 8:15 pm
http://www.nwitimes.com/news/local/lake/lake-station/judge-seals-report-in-soderquist-case/article_7674fc09-d584-5a06-9719-e7b8ce363bb4.html
HAMMOND | The public will not be allowed to view the pretrial bond report on indicted Lake Station Mayor Keith Soderquist.

Soderquist, 44, his wife, Deborah Soderquist, 55, and the mayor's stepdaughter, Miranda Brakley, 33, were each released on a $20,000 unsecured bond last week after pleading not guilty to a total of 15 criminal charges spanning two public corruption indictments.

The court, however, ruled the public or other defendants would not be allowed to see Keith Soderquist's pretrial bond report, which typically contains background information in helping the judge set bail such as any past criminal history that may exist.

U.S. Magistrate Judge John E. Martin also imposed some additional conditions on the bond. The Soderquists are not allowed to travel outside the U.S. District Court of Indiana without communicating their whereabouts to federal probation officers, surrender any weapons to a third party, and not visit any casinos.

In one indictment, Keith and Deborah Soderquist each face charges of pocketing money from the city's food pantry and the mayor's re-election campaign, in part for gambling at Indiana and Michigan casinos. A second federal indictment alleges the couple knew the mayor's stepdaughter, Brakley, stole at least $5,000 from the Lake Station City Court and helped her conceal the theft.

04192014 - News Article - Shackles, high-profile raids highlight visual assault on region public corruption

Shackles, high-profile raids highlight visual assault on region public corruption

NWI Times
April 19, 2014 - 10:30 pm 

http://www.nwitimes.com/news/local/lake/gary/shackles-high-profile-raids-highlight-visual-assault-on-region-public/article_a3beebce-ad93-5197-bc8f-8481254710dd.html

HAMMOND | The clanking of shackles around wrists and ankles of elected officials charged with public corruption sends a sensory message, whether intended by law enforcement or not.

A message also comes across with the massive billboard-sized FBI logo on the sides of an evidence truck parked outside a local government building being raided.

At least one region defense attorney contends -- and some federal agents agree -- authorities here are sending a more visual, public message these days in a crack-down on alleged public corruption and other offenses.

Criminal defense attorney Scott King took note last year when his client, former Lake County Surveyor George Van Til, was led into Hammond federal court -- shackled hand and foot -- for his initial appearance on public corruption charges.

At the time, King said it was the first time he could remember seeing a client accused of nonviolent offenses marched into court in chains.

But it wouldn't be the last.

King also is representing Lake Station Mayor Keith Soderquist and the mayor's wife on charges of stealing from campaign and city food pantry funds, among other accusations. On Thursday, the U.S. Marshals Service led Soderquist, his wife and stepdaughter, who also face charges, into Hammond federal court with the defendants clad in wrist and ankle chains.

King said he vehemently disagrees with the practice of shackling defendants charged with nonviolent crimes before they've been convicted of doing anything wrong.

He said he went on record with the complaint last year, sending a formal letter of protest to Northern District of Indiana U.S. Chief Judge Philip Simon.

Simon was unavailable for comment Friday.

The U.S. Marshals Service, the agency providing federal courtroom security, would not comment on any security measures or decisions, agency spokeswoman Pamela Mozdzierz said.

But to King, the shackling practice is a visual splash that presumes guilt of nonviolent offenders before they've been tried or convicted.

"Historically, in cases of people accused of nonviolent offenses, you didn't see this practice," King said.

"It's a visual act that I don't think is justified by any real security threat. They're bringing people into the courtroom in chains at a stage where they're presumed innocent."

In the case of Van Til, he ultimately pleaded guilty to charges of using county government resources to further his campaign and then directing the destruction of evidence to cover it up.

But Van Til, who is free on bond awaiting sentencing in his case, had not yet been convicted in May 2013 when he entered a federal courtroom with shackled wrists and ankles that also were connected to a chain around his waist.

King acknowledged that since Van Til's initial appearance, he is seeing more use of shackles for all defendants during initial appearances on criminal charges in Hammond federal court.

Though the U.S. Marshals Service declined to comment on the practice of shackling inmates, another federal agency's office admits a concerted effort to become more publicly visible in some of its operations.

Last month, the 600 block of Connecticut Street in Gary was closed down, and a large white truck with a prominent FBI logo was parked outside the Calumet Township trustee's office.

FBI and IRS had closed down the office and were seen carrying boxes and at least one computer out of the trustee's facility while serving a federal search warrant.

Throughout the morning, and in spite of an intermittent cold rain, a few people living in the nearby neighborhood came out to gawk at the truck and snap its picture in front of Trustee Mary Elgin's place of business.

Though no charges or reason behind the raid have yet been made public, the FBI made no secret it was there.

And according to a local FBI supervisory agent, that's partly by design.

"We are going to be visible and active, because part of our success is our visibility in the community -- like when our personnel are actively engaged in investigations, collecting evidence and serving subpoenas," said Bob Ramsey, supervisory agent for the FBI's Merrillville office.

"It's a good indication we are out there working hard and protecting the public's interests. "There haven't been any directives specifically from Indianapolis. Just our mindset up here is that there is work to do, and we are going to be aggressive."

Ramsey acknowledged crime deterrence is one of several reasons for the agency's high-profile look.

04192014 - News Article - Shackles, high-profile raids highlight visual assault on region public corruption

Shackles, high-profile raids highlight visual assault on region public corruption
April 19, 2014 10:30 pm
Marc Chase
Bill Dolan
NWI Times
http://www.nwitimes.com/news/local/lake/gary/shackles-high-profile-raids-highlight-visual-assault-on-region-public/article_a3beebce-ad93-5197-bc8f-8481254710dd.html

HAMMOND | The clanking of shackles around wrists and ankles of elected officials charged with public corruption sends a sensory message, whether intended by law enforcement or not.

A message also comes across with the massive billboard-sized FBI logo on the sides of an evidence truck parked outside a local government building being raided.

At least one region defense attorney contends -- and some federal agents agree -- authorities here are sending a more visual, public message these days in a crack-down on alleged public corruption and other offenses.

Criminal defense attorney Scott King took note last year when his client, former Lake County Surveyor George Van Til, was led into Hammond federal court -- shackled hand and foot -- for his initial appearance on public corruption charges.

At the time, King said it was the first time he could remember seeing a client accused of nonviolent offenses marched into court in chains.

But it wouldn't be the last.

King also is representing Lake Station Mayor Keith Soderquist and the mayor's wife on charges of stealing from campaign and city food pantry funds, among other accusations. On Thursday, the U.S. Marshals Service led Soderquist, his wife and stepdaughter, who also face charges, into Hammond federal court with the defendants clad in wrist and ankle chains.

King said he vehemently disagrees with the practice of shackling defendants charged with nonviolent crimes before they've been convicted of doing anything wrong.

He said he went on record with the complaint last year, sending a formal letter of protest to Northern District of Indiana U.S. Chief Judge Philip Simon.

Simon was unavailable for comment Friday.

The U.S. Marshals Service, the agency providing federal courtroom security, would not comment on any security measures or decisions, agency spokeswoman Pamela Mozdzierz said.

But to King, the shackling practice is a visual splash that presumes guilt of nonviolent offenders before they've been tried or convicted.

"Historically, in cases of people accused of nonviolent offenses, you didn't see this practice," King said.

"It's a visual act that I don't think is justified by any real security threat. They're bringing people into the courtroom in chains at a stage where they're presumed innocent."

In the case of Van Til, he ultimately pleaded guilty to charges of using county government resources to further his campaign and then directing the destruction of evidence to cover it up.

But Van Til, who is free on bond awaiting sentencing in his case, had not yet been convicted in May 2013 when he entered a federal courtroom with shackled wrists and ankles that also were connected to a chain around his waist.

King acknowledged that since Van Til's initial appearance, he is seeing more use of shackles for all defendants during initial appearances on criminal charges in Hammond federal court.

Though the U.S. Marshals Service declined to comment on the practice of shackling inmates, another federal agency's office admits a concerted effort to become more publicly visible in some of its operations.

Last month, the 600 block of Connecticut Street in Gary was closed down, and a large white truck with a prominent FBI logo was parked outside the Calumet Township trustee's office.

FBI and IRS had closed down the office and were seen carrying boxes and at least one computer out of the trustee's facility while serving a federal search warrant.

Throughout the morning, and in spite of an intermittent cold rain, a few people living in the nearby neighborhood came out to gawk at the truck and snap its picture in front of Trustee Mary Elgin's place of business.

Though no charges or reason behind the raid have yet been made public, the FBI made no secret it was there.

And according to a local FBI supervisory agent, that's partly by design.

"We are going to be visible and active, because part of our success is our visibility in the community -- like when our personnel are actively engaged in investigations, collecting evidence and serving subpoenas," said Bob Ramsey, supervisory agent for the FBI's Merrillville office.

"It's a good indication we are out there working hard and protecting the public's interests. "There haven't been any directives specifically from Indianapolis. Just our mindset up here is that there is work to do, and we are going to be aggressive."

Ramsey acknowledged crime deterrence is one of several reasons for the agency's high-profile look.

04192014 - News Article - Indiana food bank suspends contract after charges

Indiana food bank suspends contract after charges

The Times
Associated Press State Wire: Indiana (IN) 

April 19, 2014 

HAMMOND, Ind. (AP) — A northwestern Indiana food bank has suspended its contract with another food bank following its director's indictment on federal charges. 

An 11-count indictment alleges that Lake Station Mayor Keith Soderquist and his wife, Deborah Soderquist , improperly used money from the city's food pantry and his re-election campaign at local casinos. 

Deborah Soderquist is director of the Greater Hammond-Lake Station food pantry. 

The Times of Munster reports (http://bit.ly/1hcDGbE ) that the Food Bank of Northwest Indiana suspended its contract with the Lake Station food pantry following the Soderquists' indictments. 

Defense attorney Scott King says the couple "never touched a penny" of money from the city's food pantry fund, as the government alleges. 

The Soderquists are accused of cashing a $300 check intended for the food pantry before going to a Michigan casino. 

04182014 - News Article - Lake Station food pantry contract suspended after indictment

Lake Station food pantry contract suspended after indictment
NWI Times
April 18, 2014 - 7:00 pm
http://www.nwitimes.com/news/local/lake/lake-station/lake-station-food-pantry-contract-suspended-after-indictment/article_49e8d734-da51-5172-940e-a05f0f8a252d.html

GARY | The Food Bank of Northwest Indiana has suspended its contract with the Greater Hammond - Lake Station food pantry in the wake of the federal indictment of Deborah Soderquist, the pantry director, a spokeswoman said.

Food already supplied to the Lake Station pantry will be redistributed to the Lake Station community through a mobile pantry, Food Bank spokeswoman Megan Sikes said.

An 11-count indictment filed Wednesday alleges Lake Station Mayor Keith Soderquest and Deborah Soderquist, his wife, improperly used money from the city's food pantry and his re-election campaign at local casinos.

The couple are accused of cashing a $300 check from the city intended for the food pantry, according to the indictment. About two hours after the check was cashed July 13, 2011, both were gambling at Four Winds Casino in New Buffalo, Mich., authorities said.

An ATM withdrawal from the food pantry was made July 16, 2011, but the indictment does not state how much was taken.

Defense attorney Scott King has said the Soderquists "never touched a penny" of money from the city's food pantry fund, as the government alleges. King said he believes federal prosecutors "got it wrong" on charges against his clients.

The Lake Station pantry is one of almost 100 community-based programs, pantries and soup kitchens in Lake and Porter counties to be supplied food by the Food Bank of Northwest Indiana, in Gary, Sikes said.

No money was taken from the Food Bank, Sikes said. 

The Food Bank was required by law to pick up Emergency Food Assistance Program commodities that had been supplied to the pantry when the contract was suspended, Sikes said. The food will be redistributed to the community through a mobile pantry.

"Our commitment to Lake Station and all the communities we serve has not changed," Food Bank board President Kevin DeVries said. "We know that the more than 104,000 food-insecure people we serve need our resources of food."

The Times Care and Share Food Drive planned May 1 to May 30 by the Food Bank of Northwest Indiana will dedicate 200 of an expected 1,000 boxes of donated food to Lake Station residents, Sikes said.

04182014 - News Article - Lake Station Council grilled about mayor ’s charges

Lake Station Council grilled about mayor ’s charges 
Post-Tribune (IN)
April 18, 2014
LAKE STATION — Residents and a small army of local and Chicago media packed Thursday’s city council meeting, one day after Mayor Keith Soderquist , his wife and her daughter were indicted by a federal grand jury. 

Soderquist and his wife, Deborah, face various charges for misusing campaign funds and city food pantry money for gambling and other personal uses, not filing federal income tax returns for three years and conspiring to cover up Miranda Brakley’s theft of bond money from the city court, according to two separate indictments. 

Soderquist did not attend the council meeting, but the council broke from its normal routine, amending the agenda to allow public comment. The council usually opens the floor to comments only at the first meeting of the month. 

The speakers voiced frustration, confusion and, for some, an unwillingness to believe that council members were blindsided by the charges. 

After Councilman Todd Rogers admonished the crowd to “keep it civil,” several councilmen said they were saddened by the news but did not know about the allegations prior to Wednesday’s announcement by the U.S. attorney’s office in Hammond. 

“We have questions also,” Councilman At-Large Garry Szostek said. “We’d like to get them answered.” 

Councilman John McDaniel, a police lieutenant and strong Soderquist supporter, said after the meeting that he was shocked by the indictments but “figured something would happen” in light of reports in recent months that the mayor was under federal investigation. 

Kim Frizzell, city court clerk and a vocal critic of Soderquist and most of the council, said the council members should not have been surprised by the indictments because she has sent them dozens of emails, warning of improprieties in the mayor ’s office for a year. 

Frizzell, who formerly worked in the police department, said she has been collecting for several years documents demonstrating problems with the court money that Brakley is accused of stealing. 

“This (indictment) probably would not have happened this way if (the council) had acted,” Frizzell said “Their obligation to the people was to ask questions.” 

One resident, Jim Esteph, simply asked, “What are you guys going to do to restore the public trust?” 

“Nobody can tell me you didn’t know there was something wrong going on in this city,” said Vic Vargas, who worked for the city’s emergency medical services for 45 years before losing his job when the city privatized ambulance service last month. “If you didn’t know, you’re like ostriches with your heads in the sand.” 

Amelia Lara, a resident who works for the Portage Township food pantry, offered to help in “restoring faith in the (city) food pantry,” but after the meeting she blasted Soderquist . 

“( Soderquist ’s) guilty in the eyes of the people whose food he took out of their mouths,” Lara said. “He stole money from people, from children, who were hungry.” 

Outside of the council chambers, some residents cautioned to let the legal system run its course. 

“I thought maybe ( Soderquist ) would come and explain why he ripped us off,” Ashley Latta said. “If he would’ve showed up tonight to prove he’s not guilty, I would’ve believed him.” 

04182014 - News Article - Lake Station mayor, wife plead not guilty to public corruption

Lake Station mayor, wife plead not guilty to public corruption 

Post-Tribune (IN) 

April 18, 2014 

HAMMOND — Lake Station Mayor Keith Soderquist and his wife proclaimed their innocence in federal court Thursday morning, pleading not guilty in two separate criminal cases, including one claiming they illegally used money from the Lake Station Food Pantry and the mayor ’s campaign fund to pay for numerous gambling trips. 

The mayor ’s stepdaughter, Miranda Brakley, 33, also pleaded not guilty to stealing money from the city and then not reporting it as income when she filed for bankruptcy in August 2012. 

All three were released on a $20,000 bond. 

As part of their bond, the Soderquists agreed to give up a gun they legally own, and Brakley agreed to give up her U.S. passport. 

Prosecutors also agreed that Soderquist could travel for business outside of Northern Indiana as long as he alerted his probation officer to any trips. King said Soderquist has a planned trip to Washington, D.C., coming up in May. 

All three surrendered to law enforcement Thursday morning at the U.S. District Court in Hammond and then entered Magistrate John Martin’s courtroom in handcuffs. 

Soderquist , wearing a suit and tie, spoke little during the hearing other than to answer yes and no questions from Martin about his understanding of the case and his rights. 

“Not guilty,” he answered when asked by Martin as to how he plead to all 13 counts. 

Soderquist did not comment on the case after the hearing. Scott King, the Soderquists’ attorney, said his clients are innocent in both cases. 

“Our analysis of what they’re basing this on is they’re wrong,” he said. 

The mayor and his wife, Deborah, 55, who works for the city as the mayor ’s assistant, were charged in two federal indictments Wednesday evening. The first one claimed that from 2010 to 2012, the couple improperly took money that had either been donated to the mayor ’s campaign fund or given to the food pantry, which Deborah Soderquist oversees, on gambling trips to the Four Winds Casino in New Buffalo, Mich. 

That case charges them with one count of conspiracy to commit wire fraud, seven counts of wire fraud and three counts of filing false on tax returns, in connection with not reporting the money on their federal income tax returns. 

He said that money paid to the couple from the campaign fund was reimbursement for money they had spent on behalf of the campaign and because the money was a reimbursement, it is not considered new income that has to be reported on tax returns. 

The indictment claimed that the Soderquists failed to report the money paid from their campaign to them. King said that campaign finance reports might have been improperly filled out but that it was not illegal. 

He denied that the couple took money from the food pantry for their own use, saying that all money can be accounted for. 

“Categorically, we are denying any impropriety,” King said. 

He added that numbers cited in the indictment for the Soderquists’ gambling losses — a total of $104,000 over the three-year period — are deceiving because it factors in all the losses incurred, even if those losses came after winning money. He argued the actual loss was much less. 

He also dismissed the statement in the indictment that said the couple traveled to the Four Winds Casino within three hours of taking $300 from the food pantry’s account. 

“Quite candidly, so what?” King said. “What does that prove?” 

The second indictment charges Brakley, who worked as a court clerk for the city until Judge Chris Anderson fired her in June 2012, with stealing at least $5,000 from the city from 2011 to June 2012. 

The Soderquists are charged with being an accessory after the fact by helping her avoid prosecution in December 2012 and with money structuring that same month. The indictment says someone in Kentucky gave them $15,000, which the couple instructed be written in three separate checks, which they then deposited at Chase Banks in Kentucky, Munster and Merrillville. 

An Indiana State Board of Accounts audit found that more than $16,000 in bond money was missing from the city court’s account and noted that Brakley was the main employee who oversaw the money. She returned almost all of the money in December 2012, saying she had accidentally taken it when she was clearing out her office and that the money had sat untouched with the rest of her belongings in her vehicle until she discovered it that month. 

Thomas Vanes, who is representing Brakely, said he has been working on the case for just two days and had no comment. 

King said the Soderquists were just trying to help their daughter and that the money came as a loan from Deborah Soderquist ’s uncle. 

If convicted, the Soderquists face a maximum of 20 years in prison on the wire fraud counts, five years on both the accessory-after-the-fact and money structuring counts and three years on the false tax returns counts. Brakley would face a maximum of 10 years on the theft count and five years on the bankruptcy count. 

Assistant U.S. Attorney Joshua Kolar said that the government expects the case dealing with campaign and food pantry money to take about two and a half to three weeks if it goes to trial. The case involving Brakley is expected to last about a week and a half. 

A date for the trials was not set at the arraignment hearing. 

King said that Keith Soderquist , a Democrat, plans to continue serving the city as mayor and said Soderquist had actually improved the food pantry to better serve the city. 

“He’s been a very effective mayor ,” King said. 

Hobart Mayor Brian Snedecor said Thursday he didn’t have the opportunity to work very closely with Soderquist even though the two cities are neighbors. 

“When I had the opportunity to work with him, he always presented himself well,” Snedecor said. “But I’m disappointed; your heart goes out to that community.” 

04182014 - News Article - EDITORIAL: Three lessons from corruption charges

EDITORIAL: Three lessons from corruption charges
NWI Times
April 18, 2014 - 12:00 am
http://www.nwitimes.com/news/opinion/editorial/editorial-three-lessons-from-corruption-charges/article_c55bd283-1064-5d8d-bdb4-fb954bd79f1d.html

Yet another elected official in Northwest Indiana walked into the federal courthouse in Hammond wearing shackles Thursday. It is, sadly, a familiar story.

Dozens upon dozens of people connected with local government in Northwest Indiana have walked that same sidewalk.

This time, it was Lake Station Mayor Keith Soderquist, along with his wife, Deborah, and his stepdaughter, Miranda Brakley. The Soderquists were indicted Wednesday on charges of improperly using money from his election campaign and from the city's food pantry. Brakley, a previous city employee, is accused of taking at least $5,000 in bond money from the city court. The Soderquists are also charged with knowing about that $5,000 and helping Brakley avoid apprehension.

It is up to the judge to determine whether they are guilty. All three entered not guilty pleas.

But it's up to the Lake Station City Council and others in Northwest Indiana to learn from this situation.

First, there should be a wave of anti-nepotism policies adopted across the entire region. 

Deborah Soderquist is her husband's administrative assistant. She belongs by her husband's side throughout their marriage, but not in the mayor's office.

Local government should not be a family business. There should be no instance in which an employee reports directly to a member of the immediate family. It is also worth looking at whether family members even belong in the same unit of government -- and if so, under what circumstances.

There should be checks and balances in government, and banning nepotism is one of those necessary steps.

Joining the Shared Ethics Advisory Commission is a step in the right direction.

Second, the Lake Station City Council needs to take immediate action to protect the city's finances. This is a city, remember, that had the State Board of Accounts wondering about its ability to remain a viable entity.

Third, the mayor's federal indictment has not only further eroded public trust in local government but also now will raise skepticism about any decision made in Lake Station while he remains in office.

Soderquist should now resign to restore trust in the mayor's office and focus on the legal challenges facing him and his family.

04172014 - News Article - Lake Station residents demand answers after mayor indicted

Lake Station residents demand answers after mayor indicted

NWI Times
April 17, 2014 - 9:30 pm 

http://www.nwitimes.com/lake-station-residents-demand-answers-after-mayor-indicted/article_15e966c8-737a-5898-a333-a15017ab2653.html

LAKE STATION | Residents who stormed the City Council meeting room Thursday expressed anger and disappointment and demanded answers in light of the multiple criminal charges filed against Mayor Keith Soderquist, his wife and stepdaughter.

"What will you do to restore the public trust?" one resident asked.

Soderquist did not attend the meeting, which was lead by City Council President Todd Rogers.

"The mayor will not be here tonight," Rogers said.

Rogers, prior to the meeting, declined to comment about the mayor's situation or the city's future leadership status.

"It's up to his lawyers to comment," Rogers said.

The council agreed to allow limited comments from the public with about half a dozen residents going up to the microphone.

Resident Joseph Castellanos drew a round of applause when he told council members he found it hard to believe they didn't know what was going on in the city since most of the 12,000 Lake Station residents did.

"Why don't some of you resign along with the mayor? I'll serve, and I won't take any pay," Castellanos said.

Soderquist, his wife, Deborah, and stepdaughter Miranda Brakley pleaded not guilty Thursday to a total of 15 criminal charges in Hammond federal court.

Defense attorney Scott King, who is representing Soderquist and the mayor's wife, said he believes federal prosecutors "got it wrong" on charges alleging his clients stole food pantry and campaign funds, gambled away some of the proceeds and failed to report the allegedly stolen cash as income on their tax returns.

City Court Clerk Kim Frizzell also took the council to task for not asking more questions, especially in light of City Court money that was found missing and later was turned in by Brakley, a fired city court employee. The money was found in Brakley's car.

"I'd like to know what each of you feel. You said you had no idea this was going on, but none of you asked about the money," Frizzell said.

Councilman Gary Szostek told residents they probably know as much as council members do about what is going on.

"I had no idea. It came as a shock. We have no control over the mayor's campaign fund. ... You all have questions and hopefully your questions will be answered, but not by us," Szostek said.

Resident Amelia Lara said she was especially sickened to hear the mayor was accused of stealing food pantry funds. She serves as a food pantry director in Portage.

"This is an administration that stole from hungry people. That crushes me," Lara said.

Lara said she would be willing to work with the community to restore the food pantry.

"It needs to be run by a board and the community and not by city officials," Lara said.

Councilman Rick Long, at the end of the meeting, asked the community to work together and to go forward.

"It's a sad day in the city, and I'm very disappointed. We still have a city to run, and we need to work together to get it done," Long said. "Hopefully we can get through this quickly and move forward."

04172014 - News Article - Indiana mayor, wife indicted for allegedly using public money for gambling

Indiana mayor, wife indicted for allegedly using public money for gambling

Evening News and Tribune (Jeffersonville-New Albany, IN) 

April 17, 2014 

Lake Station Mayor Keith Soderquist and his wife used money meant to feed the needy to feed their gambling habit, according to federal prosecutors. 

The U.S. attorney’s office in Hammond announced Wednesday evening two separate indictments against Soderquist , 44, and Deborah Soderquist , 55, and one of the cases accuses his stepdaughter, a former Lake Station employee, of stealing bond money posted at city court and committing bankruptcy fraud. 

Scott King, who is representing the Soderquists, said his clients have been cooperating with federal agents for more than a year. 

“We really have a very fundamental disagreement about their interpretation and our interpretation,” King said. 

The first indictment charges the Soderquists with taking money from the Lake Station Food Pantry, which receives money from city and state tax dollars and local donations, and the mayor’s campaign fund for their personal use, including dozens of trips to Four Winds Casino in New Buffalo, Mich., from 2010 to 2012. 

The indictment claims that on 67 days over the three-year period, the couple withdrew money — at least $18,500 — from the bank account of the Committee to Elect Keith Soderquist and traveled to the casino each time. 

On at least one occasion, the couple withdrew $300 from the food pantry’s bank account and were at the casino within three hours, according to the indictment. It says they are also accused of making 14 wire transfers from the two funds for personal use over the same time period. 

The indictment says they lost $45,000 to gambling in 2010, $32,000 in 2011 and $27,000 in 2012. 

The Soderquists hid their activity by not reporting the campaign fund withdrawals on election forms they must file, and Mayor Soderquist had all bank statements for the pantry, which his wife oversaw, sent directly to his office. Deborah Soderquist worked as the mayor’s administrative assistant. 

The indictment does not say exactly how much money was taken from the pantry or campaign fund. It charges the Soderquists each with one count of conspiracy to commit wire fraud, six counts of wire fraud and three counts of filing false tax returns for not reporting the diverted money as income on federal returns for 2010, 2011 and 2012. 

The second indictment says Miranda Brakley, 33, a former city court clerk, stole at least $5,000 in bond money from city court from August 2011 to July 2012 and also hid $7,000 in income she received from the city from her bankruptcy case, which she filed in August 2012. The Soderquists are also charged with helping her hide the thefts. 

Brakley’s court job became a legal issue between the city judge and the mayor after the judge fired her in June 2012. Soderquist took control of all the court clerks two weeks later and rehired Brakley, but the judge sued the mayor and city council, regaining control over the clerks. Brakley was then fired again. 

An Indiana State Board of Accounts audit released in January 2013 disclosed that $16,464 in bond money paid by defendants was missing from the court’s account, money that was mostly overseen by Brakley. She turned over $15,800 to the city in December 2012, claiming that she had accidentally taken the money while cleaning out her desk and had left the box with the money sitting untouched in her vehicle the whole time. 

The second indictment also charges the Soderquists with violating federal banking law. It says they drove to Kentucky in December 2012, where a person, not identified in the indictment, gave them $15,000. 

The couple told the person to write three checks, each totalling less than $10,000 and to write different dates on them, the indictment says, and the mayor and his wife cashed one of the checks at a Chase Bank in Bowling Green, Ky., and the other two at Chase Banks in Munster and Merrillville. Federal law requires banks to report any activity greater than $10,000. 

King said the Soderquists had not been arrested as of Wednesday evening, but he expected they would make their initial appearance at the U.S. District Court in Hammond on Thursday. 

Several Lake Station council members said Wednesday that they were surprised by the indictments. 

Councilman Rick Long said that although he knew that federal authorities had been investigating the mayor, he thought any case must have been dropped when he hadn’t heard anything in some time. 

“Sometimes we get this false impression that no news is good news,” Long said. “He had a lot of potential; you don’t want to see him get in trouble.” 

Long said Soderquist has been absent from several recent political events in the city and was not in the office Tuesday, although Long said he was told that his wife was sick and he was with her. 

He said Soderquist had worked to find the food pantry its own space several years ago, adding that he thought the Soderquists “were doing a great job with the food pantry.” 

Councilman At-Large Todd Lara said he and the Soderquists have been friends for years, and he was shocked at the news. 

“I’m definitely surprised. I didn’t see this coming,” Lara said. “I’m actually devastated because no matter what happens, even if [the mayor] is found not guilty, it tarnishes everything we’ve tried and worked so hard to get away from as far as the city’s image before.” 

04172014 - News Article - Lake Station mayor , wife face charges of public corruption

Lake Station mayor , wife face charges of public corruption 

Post-Tribune (IN)
April 17, 2014 

Lake Station Mayor Keith Soderquist and his wife used money meant to feed the needy to feed their gambling habit, according to federal prosecutors. 

The U.S. attorney’s office in Hammond announced Wednesday evening two separate indictments against Soderquist , 44, and Deborah Soderquist , 55, and one of the cases accuses his stepdaughter, a former Lake Station employee, of stealing bond money posted at city court and committing bankruptcy fraud. 

Scott King, who is representing the Soderquists, said his clients have been cooperating with federal agents for more than a year. 

“We really have a very fundamental disagreement about their interpretation and our interpretation,” King said. 

The first indictment charges the Soderquists with taking money from the Lake Station Food Pantry, which receives money from city and state tax dollars and local donations, and the mayor ’s campaign fund for their personal use, including dozens of trips to Four Winds Casino in New Buffalo, Mich., from 2010 to 2012. 

The indictment claims that on 67 days over the three-year period, the couple withdrew money — at least $18,500 — from the bank account of the Committee to Elect Keith Soderquist and traveled to the casino each time. 

On at least one occasion, the couple withdrew $300 from the food pantry’s bank account and were at the casino within three hours, according to the indictment. It says they are also accused of making 14 wire transfers from the two funds for personal use over the same time period. 

The indictment says they lost $45,000 to gambling in 2010, $32,000 in 2011 and $27,000 in 2012. 

The Soderquists hid their activity by not reporting the campaign fund withdrawals on election forms they must file, and Mayor Soderquist had all bank statements for the pantry, which his wife oversaw, sent directly to his office. Deborah Soderquist worked as the mayor ’s administrative assistant. 

The indictment does not say exactly how much money was taken from the pantry or campaign fund. It charges the Soderquists each with one count of conspiracy to commit wire fraud, six counts of wire fraud and three counts of filing false tax returns for not reporting the diverted money as income on federal returns for 2010, 2011 and 2012. 

The second indictment says Miranda Brakley, 33, a former city court clerk, stole at least $5,000 in bond money from city court from August 2011 to July 2012 and also hid $7,000 in income she received from the city from her bankruptcy case, which she filed in August 2012. The Soderquists are also charged with helping her hide the thefts. 

Brakley’s court job became a legal issue between the city judge and the mayor after the judge fired her in June 2012. Soderquist took control of all the court clerks two weeks later and rehired Brakley, but the judge sued the mayor and city council, regaining control over the clerks. Brakley was then fired again. 

An Indiana State Board of Accounts audit released in January 2013 disclosed that $16,464 in bond money paid by defendants was missing from the Whiting court’s account, money that was mostly overseen by Brakley. She turned over $15,800 to the city in December 2012, claiming that she had accidentally taken the money while cleaning out her desk and had left the box with the money sitting untouched in her vehicle the whole time. 

The second indictment also charges the Soderquists with violating federal banking law. It says they drove to Kentucky in December 2012, where a person, not identified in the indictment, gave them $15,000. 

The couple told the person to write three checks, each totalling less than $10,000 and to write different dates on them, the indictment says, and the mayor and his wife one of the checks at a Chase Bank in Bowling Green, Ky., and the other two at Chase Banks in Munster and Merrillville. Federal law requires banks to report any activity greater than $10,000. 

King said the Soderquists had not been arrested as of Wednesday evening, but he expected they would make their initial appearance at the U.S. District Court in Hammond on Thursday. 

Several Lake Station council members said Wednesday that they were surprised by the indictments. 

Councilman Rick Long said that although he knew that federal authorities had been investigating the mayor , he thought any case must have been dropped when he hadn’t heard anything in some time. 

“Sometimes we get this false impression that no news is good news,” Long said. “He had a lot of potential; you don’t want to see him get in trouble.” 

Long said Soderquist has been absent from several recent political events in the city and was not in the office Tuesday, although Long said he was told that his wife was sick and he was with her. 

He said Soderquist had worked to find the food pantry its own space several years ago, adding that he thought the Soderquists “were doing a great job with the food pantry.” 

Councilman At-Large Todd Lara said he and the Soderquists have been friends for years, and he was shocked at the news. 

“I’m definitely surprised. I didn’t see this coming,” Lara said. “I’m actually devastated because no matter what happens, even if (the mayor ) is found not guilty, it tarnishes everything we’ve tried and worked so hard to get away from as far as the city’s image before.

04172014 - News Article - NW Indiana mayor pleads not guilty to charges

NW Indiana mayor pleads not guilty to charges 

Associated Press State Wire: Indiana (IN) 

April 17, 2014 

HAMMOND, Ind. (AP) — A northwestern Indiana mayor , his wife and stepdaughter have pleaded not guilty to federal corruption charges. 

Lake Station Mayor Keith Soderquist and the others entered the pleas during a federal court hearing Thursday in Hammond, a day after prosecutors announced the grand jury indictment against them. 

Defense attorney Scott King says the Soderquists have been cooperating with federal agents for more than a year and that they disagree with investigators' interpretation of events. 

The indictment charges the couple made withdrawals totaling at least $18,500 from the mayor 's campaign account before casino trips. Another charge is that they took $300 from a city food pantry bank account. 

The couple also is charged with helping the mayor 's stepdaughter hide the theft of at least $5,000 from the city just east of Gary. 

04172014 - News Article - Indiana mayor pleads not guilty to fraud charges

Indiana mayor pleads not guilty to fraud charges 

Associated Press State Wire: Indiana (IN)

April 17, 2014

HAMMOND, Ind. (AP) — A northwestern Indiana mayor pleaded not guilty Thursday to federal charges that he and his wife took more than $18,000 from his campaign account at the same time they had big casino gambling losses. 

Lake Station Mayor Keith Soderquist , his wife Deborah Soderquist , and stepdaughter entered the pleas during a federal court hearing a day after prosecutors announced grand jury indictments charging them with wire fraud and filing false tax returns. 

Defense attorney Scott King said Soderquist might be responsible for sloppy reporting of campaign finances, but that he and his wife did nothing illegal. 

"Every penny they ever received from the campaign fund was reimbursement for expenses they had personally incurred on behalf of the campaign. Therefore, there is no act of fraud," King told reporters after Thursday's court hearing. 

The indictment charges the couple made numerous withdrawals between spring 2010 and late 2012 at the same time that they lost $104,000 at area casinos. 

Another charge is that they cashed a $300 check from the city that was intended for the Lake Station Food Pantry. About two hours after the check was cashed in July 2011, both were gambling at a New Buffalo, Mich., casino, according to the indictment. 

King, a former Gary mayor , said his client did nothing wrong, and criticized prosecutors for trying to tie bank transactions with a later trip to a casino. Keith Soderquist will continue serving as mayor while he contests the charges, King said. 

"Quite candidly, so what? What is that proving?" King said. 

Soderquist , a Democrat, was first elected mayor of the 13,000-person city just east of Gary in 2008 and was re-elected in 2012. Deborah Soderquist is her husband's mayoral administrative assistant and has been treasurer of his campaign committee. 

They are also charged with helping the mayor 's stepdaughter hide the theft of at least $5,000 from the Lake Station City Court. 

The couple surrendered to federal authorities Thursday, and appeared in handcuffs in court before being released on $40,000 bonds. 

04172014 - News Article - Lake Station mayor, wife, stepdaughter plead not guilty to corruption charges

Lake Station mayor, wife, stepdaughter plead not guilty to corruption charges

NWI Times
April 17, 2014 - 10:54 am  

http://www.nwitimes.com/lake-station-mayor-wife-stepdaughter-plead-not-guilty-to-corruption/image_553f01ed-0ed0-5c1c-8bce-e3394d209591.html

HAMMOND | Lake Station's mayor, his wife and his stepdaughter entered a Hammond federal courtroom in shackles Thursday, all three pleading not guilty to a total of 15 criminal charges spanning two public corruption indictments.

Defense attorney Scott King, who is representing Mayor Keith Soderquist, 44, and the mayor's wife, Deborah Soderquist, 55, said he believes federal prosecutors "got it wrong" on charges alleging his clients stole food pantry and campaign funds, gambled away some of the proceeds and failed to report the allegedly stolen cash as income on their tax returns.

Speaking after a plea hearing, King said the Soderquists reimbursed themselves for "personal expenses" from the mayor's campaign fund. He said they "never touched a penny" of money from the city's food pantry fund, as the government also alleges.

And he denies they committed any criminal acts in assisting the mayor's stepdaughter, Miranda Brakley, 33, who is charged along with the Soderquists in a separate indictment.

King said Soderquist, a Democrat first elected to the mayor's office in 2008, would continue on as Lake Station mayor and fight the charges.

"He's got a city to run, and he's been real effective at it," King said.

"The mayor and Mrs. Soderquist have completely cooperated with this ongoing investigation even before retaining counsel," King said in a news conference outside the Hammond Federal Courthouse.

"I urge a lot of restraint when considering these charges."

As part of the terms of their release on bond Thursday, the Soderquists will not be allowed to travel outside the U.S. District of Northern Indiana without communicating whereabouts to federal probation officers. A pistol the Soderquists own also will have to be turned over to Lake Station police, pending trial.

Federal prosecutors said Thursday they plan to handle the charges in two separate trials, one that could last between two and three weeks and another estimated to last two weeks. No trial dates had been set as of Thursday.

Following Thursday's plea hearing, all three defendants walked in a tight grouping from the courthouse without answering questions about the federal allegations. They each were released on a $20,000 unsecured bond.

In one indictment, Keith and Deborah Soderquist each face charges of pocketing money from the city's food pantry and the mayor's re-election campaign, in part for gambling at Indiana and Michigan casinos.

A second federal indictment filed Wednesday in U.S. District Court alleges the couple knew the mayor's stepdaughter, Brakley, stole at least $5,000 from the Lake Station City Court and helped her conceal the theft.

Defense attorney Thomas Vanes, who is representing Brakley in the criminal case, declined any specific comment Thursday, noting he only had been retained within the past 48 hours.

"All I would offer on the matter is that nothing is as it seems in Lake Station," Vanes said.

The indictments follow the fall 2013 execution of search warrants by federal agents at Lake Station City Hall. The city's clerk-treasurer previously said she had received 10 subpoenas asking for records and information about Brakley's employment with the city.

Deborah Soderquist works for the city as the mayor's administrative assistant. She also serves as treasurer of her husband's election campaign committee. Brakley previously worked as a city employee. 

One indictment alleges between spring 2010 and December 2012, the Soderquists were improperly pocketing funds at the same time they lost $104,000 at region casinos.

The couple face charges of conspiracy to commit wire fraud, seven counts of wire fraud and three counts of false tax filings. The wire fraud charges each carries penalties of up to 20 years in prison on conviction and fines of up to $250,000.

In a three-year span, the couple took $18,500 from the election campaign's account, according to the indictment.

The couple also are accused of cashing a $300 check from the city that was intended for the Lake Station Food Pantry, according to the indictment. About two hours after the check was cashed July 13, 2011, both were gambling at the Four Winds Casino in New Buffalo, Mich., authorities said.

The indictment alleges that in 2010, $3,500 was withdrawn during 12 different days from Soderquist's election campaign committee account. The money was withdrawn within one day from when the couple traveled to the Four Winds Casino in New Buffalo.

In 2011, the couple withdrew on 30 different days more than $10,000 from the campaign account, according to the indictment. Again, the couple traveled to the Four Winds Casino after the money was taken, the indictment states.

The next year, more than $5,000 was withdrawn from the campaign account, according to the indictment, and the couple traveled to casinos after the withdrawals were made. 

From 2010 to 2012, the couple is accused of filing false or misleading Indiana Elections Commission forms and filing false tax returns.

In a separate indictment, Brakley is accused from 2011 to 2012 of taking at least $5,000 in bond money from the Lake Station City Court. She also is accused of making a false bankruptcy declaration by failing to disclose more than $7,000 in payments from the city of Lake Station. 

The Soderquists are charged in the second indictment with being an accessory after the fact by helping prevent Brakley's apprehension. 

The Soderquists also are charged in the second indictment with structuring financial transactions to avoid federal scrutiny. According to the indictment, in December 2012 the couple drove to Kentucky to obtain $15,000 from an unidentified person.

The couple told the unidentified person to write three checks with three different dates that totaled less than $10,000, according to the indictment. Banks are required to file a report involving transactions of more than $10,000. 

The checks later were cashed in Bowling Green, Ky., Munster and Merrillville, the indictment states.

King represented Brakley after a State Board of Accounts audit concluded she owed the city $37,182 in unapproved leave payments. King said last year Brakley didn't owe the money, had done nothing wrong and was wrongfully terminated as a city employee.

On her last day as a city employee, $15,880 in missing city bond collections was found in Brakley's car. King previously said that money was returned to the city and was among boxes city employees moved to Brakley's car. King is continuing to represent Brakley in a civil lawsuit she has filed against the Lake Station City Court, alleging wrongful termination. However, attorney Vanes will represent Brakley in the federal criminal case.

04162014 - News Article - EDITORIAL: Lake County needs to join era of ethics

EDITORIAL: 

Lake County needs to join era of ethics

Doug Ross 

Times of Northwest Indiana Editorial Page Editor

4/16/2014 - 7:25:00 PM

http://indianaeconomicdigest.com/main.asp?SectionID=31&SubSectionID=79&ArticleID=74307

Lake County government is now alone in declining to pay for ethics training for employees. That's shameful. Porter and LaPorte counties have already committed to joining the Shared Ethics Advisory Commission. [ http://www.sharedethics.com/index.htm ]

At the commission's invitation, a majority of Lake County Council members signed a pledge presented to all Northwest Indiana candidates for municipal and county offices.

"If elected to the office I seek, I commit myself to being an advocate for ethical practices within my realm of responsibility," the 2014 candidate ethics action pledge says.

The pledge further commits the candidate to making formal training available to employees, adopting an ethics code and protecting whistleblowers.

That ought to be an easy pledge, especially after dozens of area public officials have been prosecuted on public corruption charges.

FBI raids in Porter County and Calumet Township offices add to the urgency to sign this pledge.

At least five of the Lake County Council members — Ted Bilski, D-Hobart; Dan Dernulc, R-Highland; David Hamm; D-Hammond; Jerome Prince, D-Gary; and Eldon Strong, R-Crown Point — have signed the pledge. Prince is seeking the county assessor position but sits on the council now.

Yet every time Shared Ethics Advisory Commission President Calvin Bellamy has asked the County Council to appropriate money for the commission to pay for training, he has come away empty-handed.

Lake County citizens and taxpayers should be furious.

How can public trust in county government — which is already at a low level — be rebuilt when the County Council refuses to pay a paltry sum for ethics training?

The Shared Ethics Advisory Commission has no paid staff and no office to maintain. All the dues go toward training materials.

The $5,000 entry fee and an even lower annual fee are a bargain in a county where there have been many ethical lapses — and not just the criminal ones that have led to high-profile prosecutions.

Officials note that Lake County offers in-house ethics training, provided by a consultant, but joining the ethics commission and fully participating would send a stronger signal of the commitment to ethical behavior in county government.

Hamm said he would like joining the commission to be considered by the council "And I'll carry the matter," he said.

Councilmen who signed that pledge should support Hamm on this. Lake County residents should demand it.

04162014 - News Article - Feds: Lake Station mayor gambled away campaign, food pantry cash

Feds: Lake Station mayor gambled away campaign, food pantry cash

NWI Times
April 16, 2014 - 9:00 pm 

http://www.nwitimes.com/news/local/lake/lake-station/feds-lake-station-mayor-gambled-away-campaign-food-pantry-cash/article_1aad4499-5694-5712-aff1-a712b6da2f4a.html

LAKE STATION | An 11-count federal indictment filed Wednesday alleges Mayor Keith Soderquist and his wife, Deborah Soderquist, improperly used money from the city's food pantry and his re-election campaign at local casinos. 

A second federal indictment filed Wednesday in U.S. District Court alleges the couple knew the mayor's stepdaughter, Miranda Brakley, 33, pocketed at least $5,000 from the Lake Station City Court and helped her prevent apprehension.

Wednesday's indictments come after the fall 2013 execution of search warrants at Lake Station City Hall. The city's clerk-treasurer previously said she had received 10 subpoenas asking for records and information about Brakley's employment with the city.

Deborah Soderquist works for the city as the mayor's administrative assistant. She is also the treasurer of her husband's election campaign committee. Brakley previously worked as a city employee. 

Attorney Scott King, who is representing Soderquists, said both will enter a not guilty plea in federal court Thursday.

"They have been cooperating for more than a year," King said late Wednesday. "We will be there (Thursday)." 

One indictment alleges between spring 2010 and December 2012 Keith Soderquist, 44, and Deborah Soderquist, 55, were improperly pocketing funds at the same time that they lost $104,000 at local casinos.

The couple face charges of conspiracy to commit wire fraud, seven counts of wire fraud and three counts of false filing.

In a three-year span the couple took $18,500 from the election campaign's account, according to the indictment.

The couple also are accused of cashing a $300 check from the city that was intended for the Lake Station Food Pantry, according to the indictment. About two hours after the check was cashed July 13, 2011, both were gambling at the Four Winds Casino in New Buffalo, Mich, authorities said.

An ATM withdrawal from the food pantry was made July 16, 2011, but the indictment does not state how much was taken.

According to the indictment, in 2010 $3,500 was withdrawn during 12 different days from Soderquist's election campaign committee account. The money was withdrawn within one day from when the couple traveled to the Four Winds Casino in New Buffalo.

In 2011, the couple withdrew on 30 different days more than $10,000 from the campaign account, according to the indictment. Again, the couple traveled to the Four Winds Casino after the money was taken, the indictment states.

The next year, more than $5,000 was withdrawn from the campaign account, according to the indictment. The couple traveled to casinos after the withdrawals were made. 

From 2010 to 2012, the couple are accused of filing false or misleading Indiana Elections Commission CFA-4 forms and filing false tax returns.

In a separate indictment, Brakley is accused from 2011 to 2012 of taking at least $5,000 in bond money from the Lake Station City Court. She also is accused of making a false bankruptcy declaration by failing to disclose payments from the city of Lake Station that totaled more than $7,000, according to the indictment. 

Deborah Soderquist and Keith Soderquist are charged in the second indictment with being an accessory after the fact by preventing Brakley's apprehension. 

The Soderquists also are charged in the second indictment with structuring of financial transactions. According to the indictment, in December 2012 the couple drove to Kentucky to get $15,000 from an unidentified person. The indictment does not explicitly state the origin of the $15,000. 

The couple told the unidentified person to write three checks with three different dates that totaled less than $10,000, according to the indictment. Banks are required to file a report involving transactions of more than $10,000. 

The checks later were cashed in Bowling Green, Ky., Munster and Merrillville, the indictment states.

Clerk-Treasurer Brenda Samuels said last year she had received 10 subpoenas asking for records or information about the city. A number of the subpoenas involved the employment of Miranda Brakley, a former city employee and the mayor's stepdaughter.

King represented Brakley after a State Board of Accounts audit concluded she owed the city $37,182 in unapproved leave payments.

King said last year Brakley didn't owe the money, had done nothing wrong and was wrongfully terminated as a city employee.

On her last day as a city employee, $15,880 in missing city bond collections was found in Brakley's car. King previously said that money was returned to the city and was among boxes city employees moved to Brakley's car.

Earlier Wednesday, King denied his client had been asked to turn himself in to federal authorities. 

King's past federal criminal court clientele have included convicted former East Chicago Mayor George Pabey, disgraced former Lake County Surveyor George Van Til and convicted former Calumet Township Trustee Dozier Allen, all of whom pleaded guilty to or were convicted of public corruption charges.

Keith Soderquist was first elected as Lake Station mayor in 2008 and was re-elected in 2012.