09102015 - News Article - Mayor Soderquist continues defense on stand

Mayor Soderquist continues defense on stand

NWI Times
September 10, 2015 - 1:00 PM

http://www.nwitimes.com/news/local/lake/mayor-soderquist-continues-defense-on-stand/article_246ddba9-0f85-5c76-85f4-53c5f743a14a.html

HAMMOND | Lake Station Mayor Keith Soderquist explained discrepancies in his campaign reports by telling jurors Thursday that he didn't make them a priority.

He described for a U.S. District Court jury how he and his wife, Deborah, would typically start working on the reports the day before they were due, and would turn them in minutes before the deadline.

"We just didn't have the time to complete the form completely," he said.

Soderquist took the stand in his defense Wednesday and continued testifying Thursday morning.

The government's indictment against Keith and Deborah Soderquist alleges that between spring 2010 and December 2012, the couple improperly took money from the campaign fund and food pantry at the same time they were losing more than $100,000 at area casinos. They face charges of conspiracy to commit wire fraud, seven counts of wire fraud, and three counts of false filing.

Assistant U.S. Attorney Philip Benson questioned if Soderquist was lying when he signed the campaign expense reports indicating the documents were accurate. Soderquist repeatedly said it was an error on his part.

Soderquist conceded under questioning by Benson that he could have worked on the reports instead of making numerous trips to the casino.

Benson walked Soderquist line by line through ATM withdrawals from the food pantry account compared with records from Four Winds Casino in New Buffalo, Mich.

For example, records show $400 was withdrawn Jan. 29, 2011, from an ATM using the food pantry card on the same day that the couple's casino player cards were used.

Soderquist said he didn't dispute the records, but under questioning by defense attorney Scott King he maintained that the cash withdrawals were reimbursement for expenses related to the pantry. He said the reimbursements were for mileage and food purchases.

Benson questioned why the pantry's debit card was not used directly at the grocery store to pay for the food. Soderquist explained that the card had his wife's name on it, and the store wouldn't have allowed him to make the transaction.

Soderquist has served as mayor since 2008 and prior to that served on the city council. Soderquist ran for a third term as mayor this year but was defeated in the Democratic primary.

His wife served as his administrative assistant and was also allegedly involved in the operation of the food pantry. She also served as treasurer of her husband's election campaign committee.