Thursday, January 28, 2016

01282016 - Portage Mayor James Snyder received $10,000 loan from John Cortina/Kustom Auto Towing











MONEY WAS LOAN, SPANN CO-DEFENDANT TOLD FBI
Post-Tribune (IN)
January 12, 1988
http://infoweb.newsbank.com
Rudy Byron, who goes on trial with former Lake County Commissioner Atterson Spann next week, told the FBI the money he was paid by a janitorial firm was to be considered a loan.

FBI summaries of its 1986 and 1987 conversations with Byron were filed in U.S. District Court here Friday.

Byron, who worked as a consultant for General Maintenance Co. of Highland, and PBM (Professional Building Maintenance) Inc. of Gary, is charged with extorting money from the janitorial firms and filing false tax returns for 1983 through 1985. Spann faces the same charges and an additional charge of racketeering. The two firms had contracts with county government.

Byron worked for the Lake County Commissioners as a building inspector while he was on the General Maintenance payroll.

Gary attorney Hamilton Carmouche, who represents Byron, is seeking to have Byron's statements to the FBI suppressed, alleging his client wasn't advised of his rights or that he was a target of investigation.

In its written response, the U.S. attorney's office said the government complied with federal law in its dealings with Byron.

In the summary, Byron told the FBI and the Internal Revenue Service that Larry Crowel, one of the owners of General Maintenance, told him the money he received from General Maintenance should be considered a loan.

Byron, 50, of Gary, said there were no discussions as to when the loans were to be repaid.

Crowel is expected to be one of three key government witnesses against Byron and Spann. The others are former County Commissioner and Sheriff Rudy Bartolomei, who is an unindicted co-conspirator, and Johnny Garmon, vice president of PBM.

Byron, who worked for General Maintenance from 1983 to 1985, said he made one $350 payment back to the company during his three years there.

Byron told the agents Crowel told him later that he was unaware Byron had made the loan payment. Byron said he was paid about $18,000 during the period he worked for Crowel.

The summaries indicate that Byron said he was paid by both cash and check. Byron said he never received a W-2 Form, upon which wages are listed, from Crowel.

Byron said, however, that in March 1986 he received a Form 1099, upon which supplemental income is listed, from Crowel, who told him it represented the commissions General Maintenance had paid him in 1985. Byron said Crowel couldn't explain why he hadn't received a Form 1099 for 1983 and 1984.

Spann is accused of extorting $30,000 from the two janitorial firms that had contracts with the County Commissioners. The money allegedly received by Byron is not spelled out in the indictment.

Byron said Crowel hired him away from PBM because Crowel wanted him to get the contract with Lake County government.

Byron, according to the summary, told Crowel he had a lot of experience and knew a lot of people and could be helpful in getting the contract with the county.

Byron added that he accepted cash from Crowel for political fund-raising tickets.

Byron filed amended tax returns for 1983 and 1984 after he was contacted in mid-1986 by federal agents, the summaries state.

Spann and Byron have been friends for 40 years and frequently traveled together to Las Vegas and to New Orleans for Mardi Gras, the summaries explain.










SPANN ADMITS ACCEPTING BRIBES
Post-Tribune (IN)
January 20, 1988
http://infoweb.newsbank.com
Thirty minutes before he was to go on trial here Tuesday, former Lake County Commissioner Atterson Spann pleaded guilty to racketeering in connection with accepting bribes from two janitorial firms.

Also pleading guilty at the last moment was Rudy Byron Sr., Spann's longtime associate and co-defendant. Byron pleaded guilty to three counts of filing a false tax return.

"We were notified by defense counsel Mr. (J. Michael) Katz at 12:30 p.m. that his client wanted to plead guilty to Count 1," said U.S. Attorney James G. Richmond. Katz represents Spann.

U.S. District Judge James T. Moody accepted the guilty pleas and will sentence both men on March 25.

Spann, 49, of East Chicago, faces up to 20 years in prison, a fine of up to $25,000 and forfeiture of $29,615 he admitted accepting from the janitorial firms.

Byron, 51, of Gary, faces up to nine years in prison, a fine of $505,000 and paying taxes on the income he failed to report.

Of the government's decision to drop five other counts against Spann, Richmond said, "The interest of justice would not be served by going to trial on the other counts."

Katz, who said the government didn't try to strike a plea agreement Tuesday, added, "The action today was appropriate under the circumstances."

Both Richmond and Katz said there were no negotiations about a plea agreement Tuesday.

"We don't enter into plea agreements on public corruption cases without cooperation," said Richmond.

Spann faces two more years in prison than he would have under a plea agreement proposed by the government last fall but rejected by Spann. Under that proposal, Spann would have pleaded guilty to three counts and faced up to 18 years' incarceration.

The proposed plea, however, would also have required Spann to cooperate with the government in its Operation Lights Out investigation into corruption in Lake County government.

Sources said Spann probably would have entered the federal witness protection program if he had decided to tell the government what he knows about corruption in the county.

Although he admitted his guilt, Spann said he didn't solicit the money in exchange for cleaning contracts at the Lake County Government Center.

"I accepted the money with the intent of them having the contract," Spann said in reference to General Maintenance Co. of Highland and PBM (Professional Building Maintenance) Inc. of Gary. "I didn't solicit. They gave me the money and I accepted."

Spann disagreed with Assistant U.S. Attorney David Capp's contention that Spann inflated the janitorial contracts to allow the bidders to recover the money they paid in kickbacks.

Byron pleaded guilty to failing to report $63,199 in income he received from General Maintenance and Kleen Maintenance Inc. between 1983 and 1985. Byron owned Kleen Maintenance.

The pleas preclude the need for a trial that would have included the testimony of former Lake County Sheriff and Commissioner Rudy Bartolomei.

It is Bartolomei's cooperation that launched the Lights Out investigation. Bartolomei entered the federal witness protection program shortly after being sentenced on an extortion conviction.











SPANN GETS 20 YEARS FOR TAKING BRIBES
Post-Tribune (IN) 
March 25, 1988
U.S. District Court Judge James T. Moody sentenced former Lake County Commissioner Atterson Spann to 20 years in prison Thursday - the maximum he could have received after pleading guilty to accepting bribes.

Because he pleaded guilty to racketeering, Spann is expected to serve as much as two-thirds of the sentence. Moody also fined Spann $25,000 and ordered him to forfeit $29,615 he received in kickbacks from two janitorial firms that had contracts to clean the Lake County Government Center in Crown Point.

It is the stiffest sentence in a public corruption case since former Lake County Court bailiff John Marine was given a 20-year term by Moody in 1985.

Moody also sentenced Rudy Byron, Spann's lifelong friend and accomplice, to a maximum term of nine years in prison on three counts of filing false tax returns. Byron also was fined $15,000.

Moody, who has a reputation for tough sentences in public corruption cases, ordered the two into custody immediately. They were transferred to the Metropolitan Correctional Center in Chicago, where they will be held until assignment to a prison.

Spann, 49, of East Chicago, waved to a couple of the 50 friends in attendance as he was whisked from the courtroom immediately after the hearing. Byron, 51, of Gary, hugged tearful relatives before being led away.

U.S. Attorney James G. Richmond said after the hearing that the government may not be finished with Spann.

"There are other investigations Mr. Spann may have knowledge of," Richmond said, adding that plans are indefinite on whether Spann will be called before a grand jury.

"I would like to humbly apologize to the court for my behavior," Spann said before sentencing. "There were many people who supported me over the years and I let them down. I hope my family at some point will forgive me."

Richmond had no comment on the sentence although he had called for a substantial period of incarceration.

Merrillville lawyer J. Michael Katz, Spann's attorney, said , "Today Ivan Boesky commenced serving a three-year sentence for defrauding people out of hundreds of millions of dollars. Today Atterson Spann commenced a 20-year sentence for taking $29,000."

Katz acknowledged Spann's wrongdoing but attempted to minimize it. He said Spann didn't solicit any money and blamed former Lake County sheriff and commissioner Rudy Bartolomei.

Bartolomei is in the federal witness protection program after pleading guilty to extortion. He would have been the government's key witness against Spann.

Katz said he has evidence that Bartolomei withdrew $550,000 from his accounts in Lake County financial institutions just before pleading guilty.

"Public corruption will continue until those who offer bribes realize they can't walk away scot-free," Katz said.

Richmond responded, "As long as there are public officials who take bribes and sell their offices, nothing will change."

Both Spann and Byron turned down plea agreements. Spann was offered an 18- year maximum prison term but would have had to cooperate with federal authorities in its Operation Lights Out investigation into corruption in county government.

Byron turned down a three-year maximum sentence that also required cooperation.

Spann advanced quickly to become one of the most powerful politicians in county government. He was selling men's clothing in an Indiana Harbor store when he went to work for East Chicago Mayor Robert A. Pastrick in the early 1970s. He was elected to the first of three terms as commissioner in 1974. He lost his bid for a fourth term in the 1986 Democratic primary.

Byron, who was Spann's campaign manager, worked for the commissioners and also owned Kleen Maintenance Co. Inc. Earlier this week Byron lost a suit against county commissioners alleging he was fired in January 1987 for political reasons.

Byron pleaded guilty to failing to report $63,199 in income he received from General Maintenance Co. of Highland and Kleen Maintenance between 1983 and 1985.

Spann took money from Johnny Garmon, vice president of Professional Building Maintenance Inc. of Gary, and from Larry Crowel, co-owner of General Maintenace, the government said. Garmon and Crowel are unindicted co- conspirators.

01282016 - Portage Mayor James Snyder received $2,000 contribution from John Cortina/Kustom Auto Towing












MONEY WAS LOAN, SPANN CO-DEFENDANT TOLD FBI
Post-Tribune (IN)
January 12, 1988
http://infoweb.newsbank.com
Rudy Byron, who goes on trial with former Lake County Commissioner Atterson Spann next week, told the FBI the money he was paid by a janitorial firm was to be considered a loan.

FBI summaries of its 1986 and 1987 conversations with Byron were filed in U.S. District Court here Friday.

Byron, who worked as a consultant for General Maintenance Co. of Highland, and PBM (Professional Building Maintenance) Inc. of Gary, is charged with extorting money from the janitorial firms and filing false tax returns for 1983 through 1985. Spann faces the same charges and an additional charge of racketeering. The two firms had contracts with county government.

Byron worked for the Lake County Commissioners as a building inspector while he was on the General Maintenance payroll.

Gary attorney Hamilton Carmouche, who represents Byron, is seeking to have Byron's statements to the FBI suppressed, alleging his client wasn't advised of his rights or that he was a target of investigation.

In its written response, the U.S. attorney's office said the government complied with federal law in its dealings with Byron.

In the summary, Byron told the FBI and the Internal Revenue Service that Larry Crowel, one of the owners of General Maintenance, told him the money he received from General Maintenance should be considered a loan.

Byron, 50, of Gary, said there were no discussions as to when the loans were to be repaid.

Crowel is expected to be one of three key government witnesses against Byron and Spann. The others are former County Commissioner and Sheriff Rudy Bartolomei, who is an unindicted co-conspirator, and Johnny Garmon, vice president of PBM.

Byron, who worked for General Maintenance from 1983 to 1985, said he made one $350 payment back to the company during his three years there.

Byron told the agents Crowel told him later that he was unaware Byron had made the loan payment. Byron said he was paid about $18,000 during the period he worked for Crowel.

The summaries indicate that Byron said he was paid by both cash and check. Byron said he never received a W-2 Form, upon which wages are listed, from Crowel.

Byron said, however, that in March 1986 he received a Form 1099, upon which supplemental income is listed, from Crowel, who told him it represented the commissions General Maintenance had paid him in 1985. Byron said Crowel couldn't explain why he hadn't received a Form 1099 for 1983 and 1984.

Spann is accused of extorting $30,000 from the two janitorial firms that had contracts with the County Commissioners. The money allegedly received by Byron is not spelled out in the indictment.

Byron said Crowel hired him away from PBM because Crowel wanted him to get the contract with Lake County government.

Byron, according to the summary, told Crowel he had a lot of experience and knew a lot of people and could be helpful in getting the contract with the county.

Byron added that he accepted cash from Crowel for political fund-raising tickets.

Byron filed amended tax returns for 1983 and 1984 after he was contacted in mid-1986 by federal agents, the summaries state.

Spann and Byron have been friends for 40 years and frequently traveled together to Las Vegas and to New Orleans for Mardi Gras, the summaries explain.










SPANN ADMITS ACCEPTING BRIBES
Post-Tribune (IN)
January 20, 1988
http://infoweb.newsbank.com
Thirty minutes before he was to go on trial here Tuesday, former Lake County Commissioner Atterson Spann pleaded guilty to racketeering in connection with accepting bribes from two janitorial firms.

Also pleading guilty at the last moment was Rudy Byron Sr., Spann's longtime associate and co-defendant. Byron pleaded guilty to three counts of filing a false tax return.

"We were notified by defense counsel Mr. (J. Michael) Katz at 12:30 p.m. that his client wanted to plead guilty to Count 1," said U.S. Attorney James G. Richmond. Katz represents Spann.

U.S. District Judge James T. Moody accepted the guilty pleas and will sentence both men on March 25.

Spann, 49, of East Chicago, faces up to 20 years in prison, a fine of up to $25,000 and forfeiture of $29,615 he admitted accepting from the janitorial firms.

Byron, 51, of Gary, faces up to nine years in prison, a fine of $505,000 and paying taxes on the income he failed to report.

Of the government's decision to drop five other counts against Spann, Richmond said, "The interest of justice would not be served by going to trial on the other counts."

Katz, who said the government didn't try to strike a plea agreement Tuesday, added, "The action today was appropriate under the circumstances."

Both Richmond and Katz said there were no negotiations about a plea agreement Tuesday.

"We don't enter into plea agreements on public corruption cases without cooperation," said Richmond.

Spann faces two more years in prison than he would have under a plea agreement proposed by the government last fall but rejected by Spann. Under that proposal, Spann would have pleaded guilty to three counts and faced up to 18 years' incarceration.

The proposed plea, however, would also have required Spann to cooperate with the government in its Operation Lights Out investigation into corruption in Lake County government.

Sources said Spann probably would have entered the federal witness protection program if he had decided to tell the government what he knows about corruption in the county.

Although he admitted his guilt, Spann said he didn't solicit the money in exchange for cleaning contracts at the Lake County Government Center.

"I accepted the money with the intent of them having the contract," Spann said in reference to General Maintenance Co. of Highland and PBM (Professional Building Maintenance) Inc. of Gary. "I didn't solicit. They gave me the money and I accepted."

Spann disagreed with Assistant U.S. Attorney David Capp's contention that Spann inflated the janitorial contracts to allow the bidders to recover the money they paid in kickbacks.

Byron pleaded guilty to failing to report $63,199 in income he received from General Maintenance and Kleen Maintenance Inc. between 1983 and 1985. Byron owned Kleen Maintenance.

The pleas preclude the need for a trial that would have included the testimony of former Lake County Sheriff and Commissioner Rudy Bartolomei.

It is Bartolomei's cooperation that launched the Lights Out investigation. Bartolomei entered the federal witness protection program shortly after being sentenced on an extortion conviction.












SPANN GETS 20 YEARS FOR TAKING BRIBES
Post-Tribune (IN) 
March 25, 1988
U.S. District Court Judge James T. Moody sentenced former Lake County Commissioner Atterson Spann to 20 years in prison Thursday - the maximum he could have received after pleading guilty to accepting bribes.

Because he pleaded guilty to racketeering, Spann is expected to serve as much as two-thirds of the sentence. Moody also fined Spann $25,000 and ordered him to forfeit $29,615 he received in kickbacks from two janitorial firms that had contracts to clean the Lake County Government Center in Crown Point.

It is the stiffest sentence in a public corruption case since former Lake County Court bailiff John Marine was given a 20-year term by Moody in 1985.

Moody also sentenced Rudy Byron, Spann's lifelong friend and accomplice, to a maximum term of nine years in prison on three counts of filing false tax returns. Byron also was fined $15,000.

Moody, who has a reputation for tough sentences in public corruption cases, ordered the two into custody immediately. They were transferred to the Metropolitan Correctional Center in Chicago, where they will be held until assignment to a prison.

Spann, 49, of East Chicago, waved to a couple of the 50 friends in attendance as he was whisked from the courtroom immediately after the hearing. Byron, 51, of Gary, hugged tearful relatives before being led away.

U.S. Attorney James G. Richmond said after the hearing that the government may not be finished with Spann.

"There are other investigations Mr. Spann may have knowledge of," Richmond said, adding that plans are indefinite on whether Spann will be called before a grand jury.

"I would like to humbly apologize to the court for my behavior," Spann said before sentencing. "There were many people who supported me over the years and I let them down. I hope my family at some point will forgive me."

Richmond had no comment on the sentence although he had called for a substantial period of incarceration.

Merrillville lawyer J. Michael Katz, Spann's attorney, said , "Today Ivan Boesky commenced serving a three-year sentence for defrauding people out of hundreds of millions of dollars. Today Atterson Spann commenced a 20-year sentence for taking $29,000."

Katz acknowledged Spann's wrongdoing but attempted to minimize it. He said Spann didn't solicit any money and blamed former Lake County sheriff and commissioner Rudy Bartolomei.

Bartolomei is in the federal witness protection program after pleading guilty to extortion. He would have been the government's key witness against Spann.

Katz said he has evidence that Bartolomei withdrew $550,000 from his accounts in Lake County financial institutions just before pleading guilty.

"Public corruption will continue until those who offer bribes realize they can't walk away scot-free," Katz said.

Richmond responded, "As long as there are public officials who take bribes and sell their offices, nothing will change."

Both Spann and Byron turned down plea agreements. Spann was offered an 18- year maximum prison term but would have had to cooperate with federal authorities in its Operation Lights Out investigation into corruption in county government.

Byron turned down a three-year maximum sentence that also required cooperation.

Spann advanced quickly to become one of the most powerful politicians in county government. He was selling men's clothing in an Indiana Harbor store when he went to work for East Chicago Mayor Robert A. Pastrick in the early 1970s. He was elected to the first of three terms as commissioner in 1974. He lost his bid for a fourth term in the 1986 Democratic primary.

Byron, who was Spann's campaign manager, worked for the commissioners and also owned Kleen Maintenance Co. Inc. Earlier this week Byron lost a suit against county commissioners alleging he was fired in January 1987 for political reasons.

Byron pleaded guilty to failing to report $63,199 in income he received from General Maintenance Co. of Highland and Kleen Maintenance between 1983 and 1985.

Spann took money from Johnny Garmon, vice president of Professional Building Maintenance Inc. of Gary, and from Larry Crowel, co-owner of General Maintenace, the government said. Garmon and Crowel are unindicted co- conspirators.

Tuesday, January 26, 2016

01262016 - News Article - Another judicial hopeful makes an appearance - ROBERT CANTRELL



Another judicial hopeful makes an appearance
NWI Times
Jan 26, 2016
nwitimes.com/news/local/govt-and-politics/elections/another-judicial-hopeful-makes-an-appearance/article_60212fc4-b0fb-599a-93a3-9fb07aa3de2b.html
CROWN POINT | A Hammond lawyer is exploring whether to run for Lake Circuit Court judge this spring.

Eduardo Fontanez Jr. said this week he is thinking about challenging Judge George C. Paras in the May 3 Democratic primary.

He has had a private practice since 2002. He served as an interim East Chicago city judge for nine months in 2003.

Paras is running for a second six-year term on the bench and currently is the only registered candidate.

Two others attorneys, Marissa McDermott and Roy Dominguez, have expressed interest in the job. Marissa McDermott is the wife of the Hammond mayor. Dominguez served two terms as county sheriff.

Dominguez said this week he believes Fontanez is being encouraged to run by political kingpin Robert "Bobby" Cantrell to split the Hispanic vote. "It's my understanding Eddie is considering running at the request of Bob Cantrell, in the event I run for judge."

Fontanez denied his possible candidacy is being influenced anything other than his desire to follow in the footsteps of former Circuit Court Judge Lorenzo Arredondo. "He was like a mentor to me. I hope I can do well as he did."

Fontanez faced and denied a similar allegation when he ran against Lake Superior Court Judge Jesse Villalpando in 2006.

Villalpando claimed then that Fontanez's candidacy that year was inspired by Robert Cantrell in retaliation for Villalpando refusing to send more convicted traffic offenders to a consulting firm with ties to Cantrell.

A federal jury convicted Cantrell in 2008 of taking kickbacks between 2000 and 2004 from contracts between his then-employer, the North Township trustee's office, and the same counseling service. Cantrell finished serving his 78-month federal prison term a year ago.

Fontanez said Dominguez is only trying to smear his possible candidacy. Fontanez said he has rarely seen Robert Cantrell since Cantrell's return from prison.

Monday, January 25, 2016

01252016 - News Article - Judge recommends acceptance of deal for Soderquist's wife



Judge recommends acceptance of deal for Soderquist's wife
Chicago Tribune
January 25, 2016 - 5:17 PM


A federal magistrate judge said Monday he would recommend acceptance of an agreement between federal attorneys and former Lake Station Mayor Keith Soderquist's wife to end two criminal cases against her.

According to the agreement, the government will drop charges against Deborah Soderquist of helping her daughter try to hide that she stole about $16,000 from the city of Lake Station in return for Soderquist to not fight her conviction of using money from her husband's campaign fund and the city's food pantry to pay for gambling trips.

U.S. Magistrate Judge Paul Cherry quizzed Deborah Soderquist Monday afternoon at a hearing at the U.S. District Court in Hammond, asking her if she signed the agreement voluntarily and knew all of the rights she was giving up.

Deborah Soderquist and her husband were both convicted in the gambling case in September after a two-week trial. The two, who have not been sentenced, filed a motion for a new trial.

That motion will be dropped as part of her agreement with federal attorneys. The deal also means she will no longer go on trial in the second case.

The agreement is part of plea deals that the government also worked out with her husband and her daughter, Miranda Brakley. Brakley pled guilty last week to stealing from the city, and the former mayor pled guilty to helping Brakley try to hide the theft by arranging a loan from another party so she could return the money and say she had simply misplaced it.

As part of the mayor's plea agreement, he will also drop all of his acquittal rights and motions in the gambling case.

The deals are all contingent on the others, meaning if one of the defendants does not fully comply, the government can withdraw their part of the agreement for all three.

Deborah Soderquist's deal must still be accepted by U.S. District Judge Rudy Lozano. No sentencing dates for the Soderquists or Brakley had been set as of Monday evening.


Friday, January 22, 2016

01222016 - News Article - Portage considers county option for animal control





Portage considers county option for animal control 
Post-Tribune
January 22, 2016 - 2:00PM

As plans for a new Porter County Animal Shelter move forward with a groundbreaking tentatively scheduled for May, Portage officials are in talks with the county about bringing their animals there instead of taking them to the Hobart Humane Society.

The discussion comes as the humane society was going to force Portage to make other arrangements for its animals come March 1 but, with the shelter in the works and Portage possibly included, director Brenda Slavik said the Hobart facility will continue to take Portage's animals through the end of the year or until the new shelter is ready.

"We're just trying to get something under them to get them going. We've been doing this for 11 years. We didn't want to do this that long," she said. The shelter accepts intakes from animal control in Portage, Hobart and Lake Station.

Portage is the only municipality in Porter County that does not rely on the county for animal control and shelter services. County officials have long considered the existing shelter, at 2056 Heavilin Road, outdated and too small to handle the number of animals the no-kill shelter receives, and it is not large enough to handle an influx of animals from Portage if that city's agreement with the Hobart Humane Society were to break down before a new shelter was ready.

Many details remain to be worked out, but Portage City Councilwoman Sue Lynch, D-at-large, said the city would like to maintain its own animal control officers and provide a temporary holding area for the animals brought in by animal control.

That would make it more convenient for residents to reclaim their lost pets without having to go to the shelter, which will be located on Indiana 49 between the Porter County Sheriff's Department and the Expo Center, and any animals that aren't claimed by the end of each week could be transported to the county shelter.

"It would reduce the numbers we take to Valparaiso," Lynch said, and the city would no longer be using the humane society, which is not a no-kill shelter.

Taxpayers are already contributing to the county shelter, she said, and while the city would have to pay for the shelter's services once its animals go there, if Portage uses its own animal control officers, it won't have to pay the county for that service.

"The cost can't be the same to Portage as it is for the other communities because we have been maintaining our animal control," she said, adding Portage and county officials have several months to work out the details while design and construction of the shelter move forward.

In September, county officials were surprised to learn the high percentage of animals that were brought to the Hobart shelter from Portage and euthanized, which was almost 60 percent, according to numbers provided by Portage Clerk-Treasurer Chris Stidham. Portage Mayor James Snyder said at the time the number was being driven up by the number of feral cats brought in from mobile homes and euthanized.

Lynch is serving on a committee spearheaded by Porter County Commissioner Laura Blaney, D-South, which is working out what services the new shelter will provide.

The county's hope is that Portage will want to be included in the new shelter, Blaney said.

"Obviously, it does make a difference in the size," she said, adding the facility will be designed for future expansion, or for an addition if the county and Portage can't come to an agreement before the shelter is constructed. "It would make more sense to work it out now, and I think both parties are at the table."

Portage would have to pay for shelter services even if the city maintains its own animal control, which is only fair, she said.

"Our goal is to bring them in. We want to bring them in, and it's a better deal for their animals," she said.

County Commissioner Jeff Good, R-Center, said at a recent commissioners meeting that the county would like to keep the cost of the building under $2 million; cost estimates are expected to be available in April when three companies and groups of companies offer up proposals for a new facility.

An anonymous donor has offered a significant donation toward the cost of the shelter and Blaney said that offer still stands.

"Generally speaking, we want to build a animal shelter that is something that Porter County can be proud of, so we don't want to shortchange it," said Council President Dan Whitten, D-at-large, adding the facility should be state-of-the art and a benefit to animals in the county.

He agreed with Blaney that Portage can maintain its own animal control "but they still have to have some buy-in."

The county doesn't want to build a facility too small to accommodate all the municipalities that want to take their animals there, nor do officials want a municipality to use the services and not pay for them.

"That cuts down on our ability to build something nicer," he said. "Everybody should come to the table because it's better. If you're at all an animal lover, you have to be excited about the prospect."

Wednesday, January 20, 2016

01202016 - News Article - Ex-Lake Station mayor pleads guilty to cover-up





HAMMOND — Former Lake Station Mayor Keith Soderquist and his stepdaughter remain free on bond after admitting in U.S. District Court she embezzled City Court funds and he tried to cover it up.

The 46-year-old now bearded former municipal executive told Magistrate Judge Paul Cherry on Wednesday he voluntarily has given up his rights to a second jury trial and to appeal his earlier conviction for public corruption.

He told the court he learned in 2012 his stepdaughter, Miranda Brakley, embezzled about $16,000 from Lake Station City Court while she was employed there as a clerk.

He borrowed money from an unidentified person to replace the missing money as part of a cover-up story that Brakley had only misplaced, not stolen the amount.

Brakley, 35, who also lives in Lake Station, pleaded guilty to the theft Wednesday.

They and the former mayor's wife, Deborah Soderquist, remain free while awaiting sentencing. No date has been set and the range of their potential sentences isn't known presently. The magistrate said there is a possibility Brakley could receive home detention.

The former mayor and his stepdaughter were scheduled to go to trial next month, but signed plea agreements Tuesday in return for possible leniency. They and the former mayor's wife also gave up all future appeals, including their previous effort to win a new trial on their earlier wire fraud convictions.

A jury found the former mayor and his wife guilty Sept. 11 of improperly taking thousands of dollars from Keith Soderquist's re-election campaign fund and the city's food pantry account to gamble at nearby casinos. They previously sought a new trial on grounds U.S. District Judge Rudy Lozano fell asleep while presiding over their trial.

The former mayor, who had served nearly eight years, came under state and federal scrutiny four years ago after former Lake Station City Judge Christopher A. Anderson discovered Brakley stole bond money those arrested in Lake Station posted to get out of jail.

Anderson left the bench last year, ran for Lake Station mayor and defeated Soderquist and a Republican opponent.

Merrillville defense attorney Scott King said the plea deal represents the former mayor's effort to spare the health of his family from the stress of another trial and lengthy appeal.

01202016 - News Article - Former Indiana mayor pleads guilty in embezzlement case



Former Indiana mayor pleads guilty in embezzlement case
Associated Press State Wire: Indiana (IN)
January 20, 2016
http://infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/15A801B12B930780?p=AWNB
HAMMOND, Ind. (AP) — A former northwestern Indiana mayor has pleaded guilty to helping his stepdaughter cover up her embezzlement of funds from a court.

The (Munster) Times reports (http://bit.ly/1RAakvb ) former Lake Station Mayor Keith Soderquist pleaded guilty Wednesday to being an accessory after the fact by obtaining a $15,000 loan to conceal his stepdaughter's actions. His daughter, Miranda Brakley, pleaded guilty to one count of theft over allegations she embezzled more than $16,000 from Lake Station's City Court, where she was a clerk.

The former mayor and his wife, Deborah Soderquist, also have agreed to waive their right to appeal their September convictions of improperly using campaign funds and money from the city's food pantry to gamble.

They had alleged U.S. District Judge Rudy Lozano fell asleep at least twice during their trial.

01202016 - News Article - Soderquist reaches deal, to plead guilty - Former Lake Station mayor will drop motion for new trial



Soderquist reaches deal, to plead guilty 
Former Lake Station mayor will drop motion for new trial
Post-Tribune (IN) 
January 20, 2016
Former Lake Station Mayor Keith Soderquist has reached a deal with federal attorneys to plead guilty in one criminal case and to stop fighting his conviction in another.

According to a plea agreement filed Tuesday in the U.S. District Court in Hammond, Soderquist admits he helped his stepdaughter, Miranda Brakley, hide that she stole more than $5,000 in court bond money from the city by helping her get a $15,000 loan from someone else. He faces up to five years in prison for pleading guilty to one count of acting as an accessory after the fact.

As part of the deal, Soderquist will drop his fight in a separate criminal case in which a federal jury convicted him in September of using money from his campaign fund and Lake Station's food pantry on dozens of gambling trips to Michigan.

Soderquist and his wife, Deborah Soderquist, who also was convicted, had filed a motion for a new trial, arguing that U.S. District Judge Rudy Lozano fell asleep at least twice during the two-week trial.

Both Soderquists have agreed to drop that motion and waive all their appeal rights in that case. In return, federal attorneys are dropping all charges against Deborah Soderquist in the case involving her daughter, and they will recommend that Keith Soderquist serve his sentences in both cases concurrently. They also will recommend he serve the minimum of the recommended federal sentencing guideline range in the case involving Brakley and that he serve within the guideline range for the other case. The guideline range will be determined at the sentencing hearing.

Brakley also has agreed to plead guilty to one count of theft from a program receiving federal funds. She faces up to 10 years in prison, although she could avoid jail time entirely. In return, the government will drop a second count of lying on her bankruptcy filing.

The agreements for both Soderquists stipulate that all three defendants must abide by their agreement for the mayor and his wife to receive the benefits of their own agreements.

Scott King, attorney for the Soderquists, said that the plea agreements came after concerns about the health of both Deborah Soderquist and Brakley.

"We thought there was an opportunity at trial here," he said. "But both have health issues."

The mayor was concerned and protective of them, King said.

"Frankly I've got a great deal of respect for him," he said.

Thomas Vanes, attorney for Brakley, declined to comment on the agreement.

A change of plea hearing is scheduled for Wednesday.

The agreements appear to end the legal saga of the Soderquists. Trouble first became public when then-Mayor Soderquist and then-Lake Station City Judge Chris Anderson got into a public fight over Brakley in June 2012 after Anderson fired her from her job as a court clerk.

Soderquist and the Lake Station City Council wrested control of all the court clerks from Anderson, placing them under the clerk-treasurer, but a Lake County judge later reversed the move after Anderson filed a lawsuit.

The Indiana State Board of Accounts later reported Brakley never deposited about $16,000 of bond money into the court's bank account. She returned the money by December 2012, claiming she had mistakenly taken it with her other belongings when she was fired and that it had sat in her vehicle ever since.

FBI agents would then raid City Hall in 2013, and federal attorneys filed charges against the Soderquists and Brakley in the spring of 2014.




01202016 - News Article - Soderquist admits helping stepdaughter try to hide theft



Soderquist admits helping stepdaughter try to hide theft
Chicago Tribune
January 20, 2016 - 2:36 PM

Former Lake Station Mayor Keith Soderquist pled guilty Wednesday morning to helping his stepdaughter try to hide that she stole $16,000 from the city.

In a short statement to U.S. Magistrate Judge Paul Cherry, Soderquist explained that he learned in December 2012 that Miranda Brakley, who had worked for the city as a court clerk, had stolen the money.

He then helped arrange a loan of $15,000 from a third party in order to help Brakley "in an effort to help cover up the crime," Soderquist said.

"Guilty," Soderquist said when asked how he pled.

The former mayor, who wore a brown suit jacket with a yellow button-down shirt, otherwise spoke little during the hearing, answering Cherry's questions with a "yes" or "no."

Brakley also pled guilty Wednesday morning to one count of stealing from the city. She admitted that it was her responsibility to deposit bond payments from court defendants but that from August 2011 until July 2012, she instead embezzled the money for her own use.

"I took $16,000 in bond money without any permission," she said.

She then tried to claim that she had mistakenly taken the money but had never used it, using the loan Soderquist arranged for her to help cover up the crime.

Scott King, attorney for Soderquist, praised his client after the hearing, saying that the main reason he decided to take the deal was to help protect Brakley and his wife from further prosecution.

"I have a lot of respect for that," King said.

Soderquist's guilty plea was part of a deal with federal attorneys that also helps end a separate criminal case against him and his wife, Deborah Soderquist. A federal jury convicted both of them in September of using money from his campaign fund and the city's food pantry to pay for dozens of gambling trips. The two had filed a motion for a new trial, arguing that the judge fell asleep at least twice during the trial.

However, they now agree to drop the motion and waive their appellate rights in that case. In return, federal attorneys will drop charges against Deborah Soderquist in her daughter's case and recommend that Keith Soderquist's sentences in both cases run concurrently.

The deals for all three are contingent on the others also abiding by their deals, so if one violates the terms, the other two lose their benefits.

A sentencing date has not been set for either case.

Tuesday, January 19, 2016

01192016 - News Article - Former mayor Soderquist to plead guilty, drop motion for new trial



Former mayor Soderquist to plead guilty, drop motion for new trial
Chicago Tribune
January 19, 2016 - 6:00 PM


Former Lake Station Mayor Keith Soderquist has reached a deal with federal attorneys to plead guilty in one criminal case and to stop fighting his conviction in another.

According to a plea agreement filed Tuesday in the U.S. District Court in Hammond, Soderquist admits he helped his stepdaughter, Miranda Brakley, hide that she stole more than $5,000 in court bond money from the city by helping her get a $15,000 loan from someone else. He faces up to five years in prison for pleading guilty to one count of acting as an accessory after the fact.

As part of the deal, Soderquist will drop his fight in a separate criminal case in which a federal jury convicted him in September of using money from his campaign fund and Lake Station's food pantry on dozens of gambling trips to Michigan.

Soderquist and his wife, Deborah Soderquist, who was also convicted, had filed a motion for a new trial, arguing that U.S. District Judge Rudy Lozano fell asleep at least twice during the two-week long trial.

Both Soderquists have agreed to drop that motion and waive all their appeal rights in that case. In return, federal attorneys are dropping all charges against Deborah Soderquist in the case involving her daughter, and they will recommend that Keith Soderquist serve his sentences in both cases concurrently. They will also recommend he serve the minimum of the recommended federal sentencing guideline range in the case involving Brakley and that he serve within the guideline range for the other case. The guideline range will be determined at the sentencing hearing.

Brakley has also agreed to plead guilty to one count of theft from a program receiving federal funds. She faces up to 10 years in prison, although she could avoid jail time entirely. In return, the government will drop a second count of lying on her bankruptcy filing.

The agreements for both Soderquists stipulate that all three defendants must abide by their agreement for the mayor and his wife to receive the benefits of their own agreements.

Scott King, attorney for the Soderquists, said that the plea agreements came after concerns about the health of both Deborah Soderquist and Brakley.

"We thought there was an opportunity at trial here," he said. "But both have health issues."

The mayor was concerned and protective of them, King said.

"Frankly I've got a great deal of respect for him," he said.

Thomas Vanes, attorney for Brakley, declined to comment on the agreement.

A change of plea hearing is scheduled for Wednesday.

The agreements appear to end the legal saga of the Soderquists. Trouble first became public when then-Mayor Soderquist and then-Lake Station City Judge Chris Anderson got into a public fight over Brakley in June 2012 after Anderson fired her from her job as a court clerk.

Soderquist and the Lake Station City Council wrested control of all the court clerks from Anderson, placing them under the clerk-treasurer, but a Lake County judge later reversed the move after Anderson filed a lawsuit.

The Indiana State Board of Accounts later reported Brakley never deposited about $16,000 of bond money into the court's bank account. She returned the money by December 2012, claiming she had mistakenly taken it with her other belongings when she was fired and that it had sat in her vehicle ever since.

FBI agents would then raid City Hall in 2013, and federal attorneys filed charges against the Soderquists and Brakley in the spring of 2014. Keith Soderquist ended up losing to Anderson in the May 2015 Democratic mayoral primary.

01192016 - News Article - Companies pitch plans for animal shelter



Companies pitch plans for animal shelter
Post-Tribune
January 19, 2016
Three companies or groups of companies have thrown their hats in the ring to build a new animal shelter for Porter County.

Porter County Commissioner Jeff Good, R-Center, said during a Tuesday meeting the technical service committee for the project received three responses to submit requests for proposals for the shelter, which will be constructed on county-owned Indiana 49, north of the Porter County Expo Center.

The committee reviewed the responses and ranked Larson Danielson Construction Company first, Gariup Construction and M2Ke Design second and Core, Epoch, Millies and Abonmarche third.

"We feel we have really good players who want to put an animal shelter together," Good said, adding the committee consists of himself and an engineer and construction company representative from within the county.

County officials long have said the current shelter, 2056 Heavilin Road, is outdated and too small for the number of animals it serves.

The technical service committee will put together what it wants to see in a new shelter for a request for proposals and that will go out Feb. 17, he said. The companies' proposals will be due April 7, with estimated costs. He expects a tentative groundbreaking in May.

At the same time, Commissioner Laura Blaney, D-South, is working with an advisory committee composed of representatives from the county council, a rescue group, the Expo Center, the animal shelter, the fair board and a veterinarian.

Their goal is to come up with what services the shelter will provide and what the facility will need.

"They're there to give input so we don't step on toes or duplicate (services)," she said.

Good said he didn't have any idea on what the facility would cost, but officials are trying to keep the building portion of the project under $2 million. A feasibility study a few ago by Shelter Planners of America suggested a new shelter would cost approximately $2.6 million.

The competitive nature of the design/build process, Good said, helps keep the price in check.

"For a specialty-type building, this is the way to go. You can control the design and any time you control the design, you control the costs," he said.

In related business, commissioners approved a contract for animal control and animal shelter services between the county and Beverly Shores, part of an update started in June for contracts between the county and its communities for those services.

The city of Portage has its own animal control officer and takes its animals to the Hobart Humane Society, but Board of Commissioners President John Evans, R-North, asked county attorney Scott McClure to work up the costs for Portage as plans for the shelter move forward.

"We can say we offered (the contracts) to everyone now," Evans said.

01192016 - News Article - Former Lake Station mayor, stepdaughter to plead guilty





HAMMOND — Former Lake Station Mayor Keith Soderquist plans to plead guilty Wednesday to allegations he helped his stepdaughter cover up her embezzlement from City Court and waive his rights to appeal his earlier conviction on wire fraud charges, court records show.

In a plea agreement filed Tuesday, Soderquist admitted he learned in December 2012 that Miranda Brakley had embezzled more than $5,000 in bond money from the court while she was working there.

After learning of the embezzlement, Soderquist helped Brakley obtain a $15,000 loan from a third party to cover up her crime, the plea agreement says. Soderquist will plead guilty to one count of accessory after the fact, U.S. District Court records say.

Brakley plans to plea guilty Wednesday to one count of theft from a government entity, according to court records.

Soderquist and his wife, Deborah, further agreed to withdraw all pending motions, refrain from filing any additional motions for a new trial and waive their right to appeal their convictions in the wire fraud case.

The couple were convicted Sept. 11 of improperly using money from Keith Soderquist's campaign fund and the city's food pantry account to gamble. Keith Soderquist was removed from office upon his conviction.

The Soderquists were seeking a new trial and moved to disqualify U.S. District Judge Rudy Lozano in the wire fraud case based on claims the judge fell asleep at least two times during their trial.

If a judge accepts the plea agreements, any sentence Keith Soderquist receives in the case involving Brakley will run concurrently with his sentence in the wire fraud case, court records say.

Lozano in December granted the Soderquists' motion to delay their sentencing in the wire fraud case, but a new date has not yet been scheduled.

01192016 - News Article - Soderquist and Step-Daughter Agree to Plead Guilty



Soderquist and Step-Daughter Agree to Plead Guilty
The Northwest Indiana Gazette
January 19, 2016

According to court documents filed today, Keith Soderquist and his stepdaughter Miranda Brakley have agreed to plead guilty in US Discrict Court in Hammond. The former Mayor and his wife were convicted after a trial in September 2015 and still face sentencing in that case. Those charges related to the misuse of campaign finance accounts and the theft of funds from the Lake Station Food Pantry. The Government laid out a pattern of travelling to a casino in Michigan where the Soderquists lost large sums of money.

These guilty pleas stem from the theft of to one count of theft from a program receiving federal funds. Under $10,000 by Miranda Brakley and the actions of Keith and Deborah Soderquist in covering up that theft.

Charges against Deborah Soderquist will be dismissed according to the Court documents. Keith Soderquist will plea guilty to one count of accessory after the fact which carries a prison term of up to 5 years. Soderquist’s sentence will be imposed consecutively, meaning any time he actually is required to serve in this case will be after the first sentence is completed. Although there is a possibility of up to 5 years in prison, it seems likely that he will see a matter of months added on to his sentence under the plea agreement.

Under the terms of Brakley’s the plea agreement, Brakley faces up to ten years in prison. That is not likely either, however, as the plea agreement specifically refers to a sentence of home detention:
” if my sentence falls into Zone C on the U.S.S.G. sentencing table, the government’s recommendation will be to the minimum under that section, a sentence of imprisonment that includes a term of supervised release with a condition that substitutes community confinement or home detention for one-half of the minimum term of imprisonment;”

Under Federal Law, all factors to be included in the sentencing cannot be fully determined until a pre-sentence investigation is completed. Depending on those factors, the Government could ask for a sentence of imprisonment followed by a period of home detention or solely home detention. See the full plea agreement below.