Saturday, August 7, 2004

08072004 - News Article - Judge Riga indicted on charges of corruption - Former E.C. official James Fife, wife also face federal charges of tax evasion



Judge Riga indicted on charges of corruption 
Former E.C. official James Fife, wife also face federal charges of tax evasion
Post-Tribune (IN)
August 7, 2004
Federal mail fraud and extortion charges were filed against former Schererville Town Judge Deborah A. Riga, U.S. Attorney Joseph Van Bokkelen announced Friday. 

And, Van Bokkelen released the indictment of James H. Fife, a former high-ranking official in East Chicago, and his wife on a tax-evasion charge. 

For Riga, the eight-count indictment paints a picture of a judge using her courtroom for her personal gain. 

Federal officials say Riga, 47, extorted payments from Nancy Fromm, owner of Crossroads, a counseling service for drug and alcohol offenders operating in her court. 

Riga was Schererville town judge until a Superior Court judge overturned her re-election in 2003, on charges of vote fraud. 

Neither Riga nor her attorney, Nick Thiros, could be reached for comment. 

According to court documents, between July 2001 and January 2002, Riga ordered Fromm to pay her father, Tony Riga, $500 a session as a consultant. He was paid at least four times but never worked for Crossroads. 

In October 2001, Riga replaced the court-ordered driving school Gibraltar with a company run by her father and secretly owned by the judge. The money for the school was funneled through an account opened by Winslo Stephic on her behalf. 

The schemes netted at least $30,000, according to Van Bokkelen. Riga moved to Sarasota, Fla., after leaving office at the end of 2003. A source close to the case said she is expected to surrender herself to federal authorities in Hammond on Monday. 

Schererville Councilman Steve Kil said he wouldn't want people to see this indictment as a blanket indictment of the town. "This was isolated to one individual. The action of an individual doesn't dictate what's happening in the community," Kil said. 

Council member Hal Slager said, "I just think it's unfortunate that our town is connected to this kind of indictment. Our constituents elect us with faith to look out for the public trust. This gives them concern about who they are electing." 

Riga's re-election, where she won by 11 votes, was overturned after her challenger Kenneth Anderson presented evidence of 22 fraudulent votes. Then, her re-election became the target of a joint task force investigation run by Attorney General Steve Carter and Lake County Prosecutor Bernard Carter. 

The two conducted a grand jury investigation into voter fraud in Lake County and indicted Robert "Bosko" Grkinich for his alleged role in soliciting those fraudulent votes. 

Van Bokkelen joined the task force in January. The indictment of Riga was the first indictment stemming from the three-pronged task force. 

"The people need to know it doesn't have to be this way," Van Bokkelen said. 

He said there could be more indictments from the Schererville court but declined to go into any detail. 

Anderson couldn't be reached for comment. 

Overall, Van Bokkelen hinted that the federal task force plans to step up its prosecution of vote fraud and public corruption cases by releasing indictments in the coming weeks. 

"This is definitely only the beginning," he said. 

Along with Riga, the U.S. attorney added to the number of East Chicago officials under indictment. Fife, a former high ranking official in the Pastrick administration, was indicted on six courts of federal income tax evasion, from incidents ranging from 1999 to 2001. 

Fife, 47, and his wife Karen L. Krahn-Fife, 36, both of Munster, were charged with misrepresenting a total of $326,000 in tax losses from four businesses, and more than $10,000 of income. 

During a news conference Friday, federal officials remained cagey about Fife's involvement, refusing even to name the four companies that reported the losses. Krahn had been listed as the incorporator on some of the businesses. 

They did receive city contracts while Fife was special assistant to East Chicago Mayor Robert Pastrick , said Assistant U.S. Attorney Tom Kirsch. 

The charges were compiled by the Internal Revenue Service, he said. 

East Chicago public information officer Myrna Maldonado said she could not comment on the indictments or name the companies. 

"Jim Fife has not worked for the city since 2002," she said. 

Earlier this week, Fife was named as one of the unindicted co-conspirators along with Pastrick , and current special assistant to the mayor Tim Raykovich in the so-called "Sidewalk Six" paving scandal. The three were named in a federal civil racketeering suit brought by the state attorney general. 

With the charges announced Friday against Fife, a total of eight current or former city officials now are under federal indictment. 

Reporter Steve Walsh can be reached at 648-3120 or swalsh@post-trib.com. 

Reporter Sharlonda Waterhouse contributed to this report. 

Riga is charged with renaming certain state traffic violations as violations of town ordinances, allowing the town to keep a larger portion of the fines and making her court appear more profitable, according to the indictment. 

USED IN PULLOUT ON FRONT. ORIGINALLY WENT IN FRONT OF GRAPH READING -- Schererville councilman Steve Kil said he wouldn't want people to see this indictment as a blanket indictment of the town. 

Deborah Riga 
Charged with renaming certain state traffic violations as violations of town ordinances, allowing the town to keep a larger portion of the fines and making her court appear more profitable, according to a federal indictment. 

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