Dan Murchek pleads guilty to accepting an illegal campaign contribution associated with the ex-sheriff's bribery scandal
NWI Times
May 21, 2018
http://www.nwitimes.com/news/local/crime-and-courts/dan-murchek-pleads-guilty-to-accepting-an-illegal-campaign-contribution/article_5f686f81-50a3-5a93-b7d6-8183b513b229.html
CROWN POINT — A former high-ranking Lake County police administrator pleaded guilty Monday to lying to the FBI about receiving illegal campaign contributions as part of a towing bribery scandal.
Daniel Murchek, a 24-year veteran of the Lake County police force, admitted to U.S. District Court Magistrate Judge John E. Martin he accepted a $500 check to fund his former campaign for Lake County sheriff knowing the money came from someone other than the person whose name was on the check.
Murchek said FBI agents questioned him several weeks later about whether he knew that contribution was questionable, and he falsely denied it was questionable.
His admission was part of a plea agreement Murchek made to avoid a trial on the charge and win the U.S. attorney's recommendation that Murchek receive the minimum sentence under federal guidelines and a fine of only $3,500.
Assistant U.S. Attorney Philip Benson advised Murchek and the court that Murchek was pleading guilty to a felony, which likely would disqualify him from holding a future position with any labor organization.
Murchek has been president of the Northern Indiana Area Labor Federation and the Lake County Police Association Local 72.
Paul Stracci, one of Murchek's lawyers, issued a statement after the hearing:“Today marks a day of loss."
"Dan Murchek has served our community for nearly 35 years and has received numerous commendations throughout the course of his career. He has not only saved lives but has also given his time to many local labor unions and philanthropic organizations.
"Danny’s contributions to our community cannot be overstated. He’s impacted countless lives, and I am sure Danny will continue to work to improve the lives of all Lake County residents," Stracci said.
A police veteran falls to the bribery scandal
Murchek rose in the ranks of county police to third-in-command as deputy chief of the Lake County Sheriff's Department between 2011 and last fall under former Sheriff John Buncich.
A federal grand jury indicted Murchek last month on allegations Murchek began soliciting campaign financial support in fall 2015 from Willie Szarmach, owner of CSA Towing in Lake Station, and Scott Jurgensen, owner of Samson’s Towing in Merrillville.
Unknown to Murchek or Szarmach, Jurgensen was recording their conversations. He was an undercover informant who had been helping the FBI uncover bribery among towing firms doing business with area police and politicians since 2013.
The indictment alleges Murchek again met with the two towing owners in June 2016 to explain how they could disguise campaign contributions to him in the name of other people to avoid the maximum limit for business corporations, a practice the FBI calls a structured donation.
On Sept. 23, 2016, Jurgensen gave Murchek a $1,000 contribution in the name of the towing business and a $500 check illegally structured to look like a separate contribution from one of his towing employees. Jurgensen told Murchek he was the source of the money for both checks.
Four days after the FBI raided former Sheriff John Buncich's home and office Nov. 10, 2016, for evidence of illegal contributions from towing firms, FBI agents questioned Murchek about whether he received a structured contribution from Jurgensen.
Murchek said he didn't, but now admits his denial was a lie.
The federal investigation into the Lake County Sheriff's Department has swept up a number of local government figures, including in neighboring Porter County, and is expected to claim more in the near future. Rumors abounded Thursday that other figures under Buncich's administration and municipal officials who controlled towing would be next.
Timothy Downs, who was second-in-command under Buncich, pleaded guilty Dec. 16, 2016, to cheating the public of honest government services by using his authority within the department to do political fundraising for Buncich while he was on duty and using his publicly provided police car.
Downs is still awaiting sentencing.
Portage Mayor James E. Snyder and John Cortina, owner of a Portage towing firm, are now set to stand trial June 4 in U.S. District Court — Snyder for allegedly soliciting and receiving $12,000 in exchange for a Portage towing contract, and Cortina for allegedly offering the money. They are pleading not guilty.
Tom Goralczyk, a former Merrillville town councilman, pleaded guilty in January to accepting bribes — a 2000 Jeep Grand Cherokee and a 2008 Ford Focus — in return for promises of a lucrative contract to Jurgensen, the undercover FBI informant. Goralczyk is awaiting sentencing June 5.
A U.S. District Court jury last August found Buncich guilty of soliciting and accepting campaign contributions from Szarmach and Jurgensen in return for giving them more lucrative towing work.
Buncich is serving a 188-month prison term, currently at a federal secure medical facility in Springfield, Missouri.
Dan Murchek, a former top Lake County police commander and figure in John Buncich's public corruption trial, resigns without disclosing reason
NWI Times
April 19, 2018
Updated - May 03, 2018
http://www.nwitimes.com/news/local/crime-and-courts/dan-murchek-a-former-top-lake-county-police-commander-and/article_a2509904-555e-504a-a0dd-bc205d4d4e7a.html
CROWN POINT — A high-ranking administrator under the disgraced administration of former Sheriff John Buncich abruptly left the department this week.
Dan Murchek issued a brief resignation letter late Wednesday, according to County Police Chief William Paterson, who said Murchek didn't offer any reason for his departure.
Murchek was in his 24th year as a county police officer. He rose to third in command of the county Sheriff's Department between 2011 and last fall.
He also announced last summer he would be a candidate for sheriff this year.
He abandoned that campaign earlier this year in the wake of Buncich's conviction on federal bribery and fraud charges.
Buncich is serving a 188-month prison term, currently at a federal secure medical facility in Springfield, Missouri, after a U.S. District Court jury found Buncich guilty of soliciting and accepting campaign contributions from two towing firms in return for giving them more lucrative towing work.
The federal investigation into the county Sheriff's Department also swept up Timothy Downs, who was Buncich's former second-in-command. Downs pleaded guilty to distributing Buncich's campaign fundraising tickets and collecting the contributions, all on county time and in his publicly owned vehicle. Downs is still awaiting sentencing.
Tom Goralczyk, a former Merrillville town councilman, pleaded guilty in January to accepting a bribe in the towing scandal and is awaiting sentencing.
Murchek hasn't been charged with any wrongdoing, but was the subject of testimony at Buncich's trial by Scott Jurgensen, owner of Samson’s Towing, of Merrillville, and a confidential government informant.
Jurgensen told jurors last summer that Downs and Murchek once brought him the sheriff's campaign fundraising tickets, and he bought thousands of dollars of tickets even though he never went to the fundraising events.
Jurgensen said he was prepared to support Downs for sheriff once Buncich left office because of term limits, but Downs later backed out after Murchek opened his own campaign for sheriff.
He said he gave Murchek campaign contributions, and Murchek promised him a county police towing list that would be shorter than Buncich's.
Democratic precinct committee members selected Oscar Martinez as the new sheriff Sept. 16. Martinez demoted Murchek to a deputy patrol commander.
UPDATE: Former high ranking Lake County police commander Daniel Murchek is indicted in the towing bribery scandal
NWI Times
April 20, 2018
CROWN POINT — Dan Murchek, a former high-ranking administrator, is charged and will plead guilty to lying to the FBI about his involvement in the deepening Region towing bribery scandal.
The U.S. Attorney's office made public early Friday a one-count indictment against Murchek, shortly after the 24-year veteran of the Lake County police force ended his law enforcement career with an abrupt resignation.
U.S. District Court Magistrate Judge John E. Martin arraigned Murchek, 57, of Schererville on the felony, which carries a maximum penalty of five years in prison and a $250,000 fine. He was freed on bond.
Although Murchek pleaded not guilty Friday, attorney Caitlin Padula, who represented Murchek in court, said Murchek already has signed a plea agreement admitting he lied to FBI agents Nov. 14, 2016, when he denied receiving an illegal campaign contribution from an undercover FBI informant.
The agreement, made public Friday, states Murchek has provided enough assistance to federal authorities investigating his misconduct to induce the government to recommend he receive the minimum sentence under federal guidelines and a fine of only $3,500.
His potential sentence won't be calculated until after he formally pleads guilty before U.S. District Court Judge James T. Moody. No date is set for that plea.
Murchek rose in the ranks of county police to third-in-command as deputy chief of the Lake County Sheriff's office between 2011 and last fall under former Sheriff John Buncich.
Murchek also has been president of the Northern Indiana Area Labor Federation and the Lake County Police Association Local 72.
The beginning of the end
Murchek's since abandoned plans to run for Lake County sheriff in next month's Democratic party primary election brought about his downfall.
The indictment alleges Murchek began asking for campaign financial support in the fall of 2015 from Willie Szarmach, owner of CSA Towing in Lake Station, and Scott Jurgensen, owner of Samson’s Towing in Merrillville.
Unknown to Murchek or Szarmach, Jurgensen was recording their conversations. He was an undercover informant who had been helping the FBI uncover bribery among towing firms doing business with area police and politicians since 2013.
The indictment alleges Murchek again met with the two towing owners in June 2016 to explain how they could disguise campaign contributions to him in the name of other people to avoid the maximum limit for business corporations, a practice the FBI calls a structured donation.
On Sept. 23, 2016, Jurgensen gave Murchek a $1,000 contribution in the name of the towing business and a $500 check illegally structured to look like a separate contribution from one of his towing employees. Jurgensen told Murchek he was the source of the money for both checks.
Four days after the FBI raided former Sheriff John Buncich's home and office Nov. 10, 2016, for evidence of illegal contributions from towing firms, FBI agents questioned Murchek about whether he received a structured contribution from Jurgensen.
Murchek said he didn't, but now admits his denial was a lie.
U.S. Marshals escorted Murchek into the U.S. District courtroom early Friday in civilian clothing. He answered the magistrate's questions and acknowledged he had turned over his passport and that he cannot possess any firearms in his home while free on bond.
U.S. Attorney Thomas Kirsch II issued a statement early Friday that public corruption is a priority for his office.
"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," Kirsch said.
"Mr. Murchek was a police officer, sworn to uphold the law, at the time he told the lies, making his conduct particularly egregious."
Investigation has long reach
The federal investigation into the Lake County Sheriff's Department has swept up a number of local government figures, including in neighboring Porter County, and is expected to claim more in the near future. Rumors abounded Thursday that other figures under Buncich's administration and municipal officials who controlled towing would be next.
Timothy Downs, who was second-in-command under Buncich, pleaded guilty Dec. 16, 2016, to cheating the public of honest government services by using his authority within the department to do political fundraising for Buncich while he was on duty and using his publicly provided police car.
Downs is still awaiting sentencing.
Portage Mayor James E. Snyder and John Cortina, owner of a Portage towing firm, are now set to stand trial June 4 in U.S. District Court — Snyder for allegedly soliciting and receiving $12,000 in exchange for a Portage towing contract, and Cortina for allegedly offering the money. They are pleading not guilty.
Tom Goralczyk, a former Merrillville town councilman, pleaded guilty in January to accepting bribes — a 2000 Jeep Grand Cherokee and a 2008 Ford Focus — in return for promises of a lucrative contract to Jurgensen, the undercover FBI informant. Goralczyk is awaiting sentencing May 16.
A U.S. District Court jury last August found Buncich guilty of soliciting and accepting campaign contributions from Szarmach and Jurgensen in return for giving them more lucrative towing work.
Buncich is serving a 188-month prison term, currently at a federal secure medical facility in Springfield, Missouri.
Last fall, Democratic precinct committee members selected as the new sheriff Oscar Martinez, who demoted Murchek to a deputy patrol commander.
Martinez said Friday the alleged crimes that led to Murchek's indictment occurred before his administration, but they were of great concern to him.
"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," he said.
Timeline in the Dan Murchek public corruption case
NWI Times
April 20, 2018
http://www.nwitimes.com/news/local/crime-and-courts/update-former-high-ranking-lake-county-police-commander-daniel-murchek/article_9edaee78-a6df-5c81-b949-f6f7988748ce.html
2011 – Murchek, a 24-year county police veteran, becomes third in command of the Lake County Sheriff's Department under former Sheriff John Buncich.
2013 – FBI begin investigating local public officials and towing businesses for bribe activity "among other things."
Sept. 24, 2015 – Murchek asks for campaign financial support to run for sheriff from Willie Szarmach, owner of CSA Towing in Lake Station, and Scott Jurgensen, Scott Jurgensen, owner of Samson’s Towing in Merrillville.
June 3, 2016 – Murchek tells Szarmach and Jurgensen how to disguise campaign contributions in the name of other people to avoid the maximum limit for business corporations. Jurgensen, an undercover FBI informant, records the conversation.
Sept. 23, 2016 – Jurgensen gives Murchek two checks, a $1,000 contributions in the name of the towing business and a $500 check illegally made to look like a separate contribution from one of his towing employees. Jurgensen told Murchek he was the source of the money for both.
Nov. 14, 2016 – Murchek tells FBI agents he never received an illegal campaign contribution from Jurgensen.
April 20, 2018 – Murchek is arraigned in U.S. District Court in Hammond on a charge of lying to the FBI.
Former Lake County, Ind., deputy chief indicted, accused of lying to feds during Buncich investigation
Chicago Tribune
April 20, 2018
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.”
Top Lake County Sheriff's official indicted for lying to FBI
NWI Times
Apr 21, 2018
CROWN POINT, Ind. (AP) — A former top Lake County Sheriff's Department official has been indicted for lying to the FBI during a public corruption investigation that led to the conviction of former Sheriff John Buncich.
Former Deputy Chief Dan Murchek appeared Friday in U.S. District Court. His attorney Caitlin Padula says he signed a plea agreement and is expected to plead guilty.
Murchek had planned to run for Lake County Sheriff. But authorities say he was recorded soliciting illegal campaign contributions from tow truck operators, including one who was an FBI informant.
He later denied to the FBI that he received the illegal contributions.
Buncich was found guilty last August of soliciting and accepting campaign contributions from the same tow operators in exchange for more towing work.
He is serving a 188-month prison term.
Former Lake County deputy police chief is scheduled to plead guilty May 21
NWI Times
April 23, 2018
HAMMOND — A former high-ranking Lake County police administrator is scheduled to return to U.S. District Court next month to plead guilty to making a false statement to the FBI.
A federal grand jury indicted Dan Murchek, 57, of Schererville, last week on a charge of making a false statement to FBI agents questioning him about the deepening scandal into bribery between towing firms and local government officials.
U.S. District Court Judge James T. Moody ordered Murchek to appear May 21 before Magistrate Judge John E. Martin to formally enter a guilty plea to the felony count.
Murchek already has signed an agreement with the U.S. attorney's office that he will plead guilty to making a false statement in return for leniency.
Murchek was intending two years ago to run for Lake County Sheriff this spring.
Scott Jurgensen, owner of Samson’s Towing in Merrillville, gave Murchek a $500 check in 2016 that was illegally structured to look like a campaign contribution from one of his towing employees even though Murchek knew the money actually came from Jurgensen.
Weeks later, FBI agents questioned Murchek about the two checks.
Murchek told the agents he didn't receive a structured contribution from Jurgensen. Murchek admitted in his plea agreement his denial to the agents was false.
The plea agreement states the government will recommend Murchek receive the minimum sentence under federal guidelines and only a $3,500 fine.
Murchek, a 24-year veteran of the Lake County police force, rose to third-in-command as deputy chief of the Lake County Sheriff's office between 2011 and fall 2017.
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