Friday, August 6, 2004

08062004 - News Article - More officials in federal cross hairs - PUBLIC CORRUPTION: U.S. attorney's office plans to announce at least two indictments today in corruption probe - ROBERT CANTRELL



More officials in federal cross hairs
PUBLIC CORRUPTION: U.S. attorney's office plans to announce at least two indictments today in corruption probe
NWI Times
Aug 6, 2004
nwitimes.com/news/state-and-regional/more-officials-in-federal-cross-hairs/article_878733a2-a308-5598-9bc4-fe4d88d6fbb4.html
HAMMOND -- Northwest Indiana's political community was bracing today for another body blow.

U.S. Attorney Joseph Van Bokkelen announced Thursday he will hold a press conference this morning to announce at least two new indictments in connection with his continuing investigation into public corruption -- Operation Restore Public Integrity.

His office declined comment Thursday on speculation the indictments could be aimed at East Chicago, Gary or Schererville.

Investigators for Operation Restore Public integrity have been conducting extensive probes of financial impropriety, vote stealing and fraud in those communities.

The announcement comes on the heels of Indiana Attorney General Steve Carter's racketeering lawsuit aimed at removing East Chicago Mayor Robert Pastrick and his administration from office and recovering millions of public dollars allegedly spent in 1999 in an illegal scheme to win re-election for Pastrick.

There has been speculation, denied by both Carter and the U.S. attorney's office, that the lawsuit and the upcoming indictments were part of a package aimed at Pastrick.

Pastrick isn't charged with any criminal wrongdoing, but seven of his allies are awaiting trial on criminal conspiracy charges arising from the alleged sidewalks-for-votes scandal. They have pleaded not guilty and are awaiting trial.

Federal grand juries have indicted more than two dozen elected officials and political figures on a variety of fraud-related charges since Van Bokkelen took office three years ago.

He has won the convictions of about half, including former Indiana Democratic Party Chairman Peter Manous; Kevin Pastrick, son of East Chicago Mayor Robert Pastrick; Peter Benjamin, a former county auditor and assessor; Troy Montgomery, a former Lake County Council president; former Gary City Clerk Katie Hall; and Junifer Hall, a former deputy clerk in her mother Katie Hall's office.

Federal authorities also have spent months investigating allegations of ghost employment -- paying for work not performed -- and manipulation of tax records in North Township.

They also have investigated allegations of political favoritism by the city of Gary in the awarding of waste hauling contracts.

Federal grand juries have charged three Gary city hall executives and a businessman, Otho Lyles III, on charges of lying to FBI agents about the contracts. Lyles has pleaded guilty to the charge and is cooperating with authorities. The other three are pleading not guilty.

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