Soderquist debit card use probed by feds in trial
Chicago Tribune
September 04, 2015 - 6:42 PM
September 04, 2015 - 6:42 PM
Prosecutors delved deep into Lake Station Mayor Keith Soderquist's debit card withdrawals from the Lake Station Food Pantry and his campaign accounts during the third day of the federal corruption trial in U.S. District Court in Hammond on Friday.
The government contends Keith and Deborah Soderquist used debit card withdrawals from the food pantry and his campaign for their gambling activities at Four Winds Casino in New Buffalo, Mich., and at the Blue Chip Casino in Michigan City.
Steve Martinez, a criminal investigator for the Internal Revenue Service, testified he analyzed financial documents from banks, casinos, IRS records and Soderquist's campaign finance data. He cited gambling loses of nearly $140,000 from 2009 to 2012 at the two casinos. From 2010 to 2012, the Soderquists withdrew $35,304 from the campaign accounts. Martinez said there had been no campaign account debit card withdrawals until May 24, 2010. That same day, Martinez said, Keith Soderquist's player card was used at Four Winds.
During 2011 and 2012, he said, $5,040 was withdrawn with the food pantry debit card issued to the Soderquists.
Martinez cited several dates from 2010 to 2012 in which debit card withdrawals were followed by gambling activity within one to 24 hours.
Martinez testified the Soderquists did not list the debit card withdrawals as income on their joint IRS returns.
The couple are facing charges of conspiracy to commit wire fraud, wire fraud and filing a false income tax return.
Defense attorney Scott King will begin Tuesday's testimony with a cross examination of Martinez. King has said the couple withdrew the money for legitimate expenses.
IRS revenue agent Jerad Hatagan testified Keith Soderquist made early retirement withdrawals of nearly $100,000 between 2009 and 2012. Penalties were issued on some of those withdrawals, he said.
Meanwhile, he said, Keith Soderquist's debts of about $39,000 from banks and credit cards in 2010 and 2011 had been forgiven.
FBI special agent Donald Cooley testified he visited the ATM machine where campaign withdrawals were made on Central Avenue in Lake Station and then he drove the 36 miles to Four Winds Casino in about 38 minutes.
The government recalled James Busch, who testified Thursday, for a review of checks he wrote to the Soderquist campaign fund. Busch said he wrote a check for $1,808 in June 2010 for steaks from Strack and Van Til's for a golf outing fundraiser.
He said he gave the couple a blank check for food from Key Market in 2009 for another golf outing. "I was trying to show loyalty and that I trusted him." The check was made out for $1,171. "I was nervous about it, said Busch. "I would never do it again."
Busch also donated $900 in 2011 and $300 in 2012 but gave no direction on how the funds should be used.
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