04202018 - News Article - Former Lake County, Ind., deputy chief indicted, accused of lying to feds during Buncich investigation

Former Lake County, Ind., deputy chief indicted, accused of lying to feds during Buncich investigation
Chicago Tribune
April 20, 2018
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-lake-murchek-indictment-st-0421-story.html

A former Lake County Sheriff’s Department deputy chief was indicted Friday for allegedly lying to the FBI during an investigation into pay-to-play towing that led to the conviction of former Sheriff John Buncich.

Dan Murchek, 57, of Schererville, was indicted for allegedly making false statements to the FBI, according to court documents unsealed Friday morning, and reportedly lied to investigators during an interview about towing operations under Buncich when the former deputy chief was asked about campaign contributions he received from a tow operator.

Murchek, who was escorted by U.S. marshals into a federal courtroom Friday, pleaded not guilty during a hearing but filed paperwork after the case was unsealed stating his intentions to plead guilty at a later date.

“Mr. Murchek lied to FBI agents who sought truthful information from him in connection with what was then an ongoing public corruption investigation of which he was aware. Mr. Murchek did so purely to protect his self-interest and conceal his criminal conduct from the FBI,” U.S. Attorney Thomas Kirsch II said in a statement. “Mr. Murchek was a police officer, sworn to uphold the law, at the time he told the lies, making his conduct particularly egregious.”

During the fall of 2016, Murchek had announced he planned to run for sheriff during the 2018 election, as Buncich had served two consecutive terms and was prohibited by term limits from running again.

On Sept. 23, 2016, Murchek met with “Person A,” who was recording the meeting in cooperation with the FBI, and discussed how to structure a campaign donation to avoid Indiana’s limitation on business contributions, according to court documents.

The indictment said “Person A” allegedly gave Murchek a $1,000 donation from his business, which was a towing firm that did work for the Sheriff’s Department, and a personal check for $500 from one of the business’ employees. “Person A” had given an employee $500, according to the U.S. Attorney’s Office, and the employee then wrote a check to Murchek’s campaign.

During a November 2016 interview with the FBI, agents asked Murchek about contributions from “Person A,” according to the indictment, but he denied structuring the donation to skirt Indiana campaign donation limits.

Murchek declined to comment on the charges Friday morning as he left the courthouse.

“I knew structuring occurred when a donation appeared to be made by one person, but in reality, a different person provided the money,” Murchek said in the plea agreement. “I willfully and knowingly made a materially false statement and representation when I denied receiving a structured campaign donation from the owner of one of the towing firms.”

“In fact, I knew ‘Person A’ had provided the money for his employee’s donation,” Murchek added.

Assistant U.S. Attorney Philip Benson said the maximum penalty is five years in prison and a $250,000 fine.

“This indictment is unfortunate,” defense attorney Caitlin Padula said.

But, Padula said, people should remember Murchek’s past public service.

Murchek had been with the Lake County Sheriff’s Department for 24 years, and previously worked for police departments in Dyer and Hebron.

After Buncich’s conviction, Murchek ran in the Democratic caucus to replace the convicted sheriff but lost after the second ballot. Oscar Martinez Jr. ultimately won during the caucus and assumed the sheriff’s office in September.

Once Martinez took office, the new sheriff removed Murchek as deputy chief and made him deputy commander of the department’s uniform division. The Sheriff’s Department said Murchek resigned Wednesday.

In a statement Friday, Martinez said the alleged crimes occurred before his administration, but noted the allegations are “of great concern.”

“Since becoming Lake County sheriff, I have done my best to set a high bar and a good example for the men and women of this department,” Martinez said. “There are many good officers who serve, I hope that the residents and visitors continue to see and appreciate the good work and service that is provided every day by the men and women of the Lake County Sheriff’s Department.”

Murchek served on several community boards and was the president of the Northern Indiana Area Labor Federation. Representatives from the organization could not be reached for comment Friday.

Magistrate Judge Jonathan Martin set Murchek’s bail at $20,000 unsecured bond.

“Good luck to you, Mr. Murchek,” Martin said.

Murchek is the latest official whose charges stem from an investigation into towing operations in Northwest Indiana that began in 2012.

Buncich, 72, was convicted for using his office to solicit bribes from tow operators, according to court records, and in January was taken into federal custody after being sentenced to more than 15 years in prison.

Buncich, former Chief Timothy Downs and William Szarmach, of C.S.A. Towing, were named in a multicount indictment in November 2016 alleging a towing scheme where the sheriff accepted bribes in the form of thousands of dollars in cash and donations to his campaign fund, Buncich Boosters, according to court records.

Murchek’s name was mentioned during Buncich’s 14-day trial, but he never attended any court sessions.

Federal prosecutors played recordings made by “Individual A” that documents meetings that on some dates involved Murchek where campaign donations and towing operations were discussed. Emails about towing areas and what firms would be used came and went from Murchek were shown to jurors.

Downs pleaded guilty in December 2016, according to court documents, and Szarmach pleaded guilty in July 2017.

In November 2017, Tom Goralczyk, a former Merrillville town councilman, was indicted for allegedly taking a 2000 Jeep Grand Cherokee; a 2008 Ford Focus; four new camper tires; and free storage for a motorcycle from “Individual A” in return for a towing contract from Merrillville, according to court documents.

Goralczyk presented false bills of sale to the Indiana Bureau of Motor Vehicles for the Jeep Grand Cherokee, which he obtained for $400 though the value was in excess of $2,500, and for the Ford Focus, which he accepted for free though it was valued in excess of $5,000, according to court documents.

Goralczyk pleaded guilty in January, according to court documents, and is tentatively set to be sentenced in May.

Portage Mayor James Snyder was indicted the same day as Buncich, Downs and Szarmach for allegedly violating a federal bribery statue. Federal prosecutors said the mayor allegedly solicited money from Cortina and “Individual A” and gave them a towing contract for the city. Snyder pleaded not guilty to the charges.

“Public corruption is a priority of my office. Along with our law enforcement partners, we will continue to investigate and prosecute public corruption across the Northern District of Indiana,” Kirsch said in a statement. “Citizens demand, and in fact deserve, honest public service from their elected and appointed officials.”