Trial starts Monday in Soderquist case
NWI Times
August 27, 2015
HAMMOND | The trial of Lake Station Mayor Keith Soderquist and his wife, Deborah, on federal charges of conspiracy, wire fraud and filing false tax returns is scheduled to begin in U.S. District Court on Monday.
The government contends the couple conspired to use campaign cash and food pantry donations to sponsor gambling trips that had put their finances in a tailspin. The trial is expected to last four to five days.
In court filings this week, prosecutors said one of their expert witnesses will be FBI special agent Robert Moledor, who the government said will give testimony placing the Soderquists' cellphones at or near the Four Winds Casino in the New Buffalo, Mich. area and at locations, such as at ATM machines, to these trips.
The government contends the pair improperly took money from the mayor's re-election campaign fund and the city's food pantry and spent it at local casinos from the spring of 2010 through December 2012.
In a recent motion, prosecutors said they anticipate introducing records from the campaign committee, the committee's bank account and area casinos. They contend the records will show an increasing number of ATM withdrawals from the campaign committee bank account — including about a dozen ATM withdrawals in 2010 that were made within 24 hours of trips the Soderquists made to a casino and more than 30 such withdrawals in 2011 and 2012.
In all, the government contends the pair took more than $20,000 through ATM withdrawals from the committee bank account over a period of time for gambling. Prosecutors said none of the withdrawals were listed on campaign finance disclosure forms signed by the couple.
In 2011, the couple also allegedly started withdrawing money from a bank account tied to the Lake Station Food Pantry, which was supported by private donations as well as government funds.
When presented with subpoenas related to the charges, prosecutors said the Soderquists submitted receipts "suggesting certain institutions received money from the campaign committee" Prosecutors, however, contend these were not legitimate reimbursement from the campaign fund.
"Instead, the submission of these receipts are simply further evidence of the defendants' attempt to conceal the conspiracy," prosecutors said.
Prosecutors also talked about what they characterize as the couples' financial decline and contend the couple lost more than $160,000 at the casinos from 2007 to 2013. The government contends evidence of the couple's alleged gambling and financial problems "goes directly to motive and intent."
The government contends the couple withdrew more than $45,000 from retirement accounts in 2009 and 2010 and $5,000 in 2011. After cashing out retirement savings, prosecutors say the couple's financial condition grew worse and in 2010 and 2011 they discharged over $35,000 in credit card debt because they were insolvent.
Defense attorney Scott King has said prosecutors "got in wrong" in regard to the charges against the couple. Speaking shortly after the indictments came down, King said the couple reimbursed themselves for personal expenses from the mayor's campaign funds and "never touched a penny" of money from the city's food pantry fund.
The couple are also scheduled to stand trial in November along with the mayor's stepdaugher, Miranda Brakley, on separate charges. In that case, they are accused of knowing Brakley took at least $5,000 from the Lake Station City Court and helped prevent her apprehension by police. King has denied they are committed any criminal act in this case as well.
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