Friday, February 29, 2008

02292008 - News Article - Cantrell denies plea rumors - Politico plans to contest fraud charges against him - ROBERT CANTRELL



Cantrell denies plea rumors
Politico plans to contest fraud charges against him
NWI Times
Feb 29, 2008
nwitimes.com/news/local/cantrell-denies-plea-rumors/article_235ad385-faf2-5d96-975e-b97b1ac74db7.html
Longtime political operative Robert Cantrell's lawyer says his client is not striking a plea deal with the feds.

A month before his federal fraud trial, the former East Chicagoan is disputing rumors that he's working out a plea deal in order to avoid trial.

"We have every intention of going to trial. Under no circumstances would there be any negotiations," Cantrell defense attorney Kevin Milner said. "This is going to trial for one reason -- to vindicate him."

Cantrell, 65, of Schererville, ran the East Chicago Republican Party on and off for several decades beginning in the 1960s. He was indicted by a federal grand jury last April on 11 counts of fraud and tax evasion.

The indictment alleges that Cantrell used political influence with his former employer, the North Township trustee's office, to enrich himself and fraudulently provide health insurance for two people, ultimately diverting about $150,000 between 1999 and 2004.

The allegations center around Cantrell's dealings with township contractor Nancy Fromm, who owned Hammond-based Addiction and Family Care and has publicly admitted to paying Cantrell a "referral fee" for township business.

Prosecutors say Cantrell failed to disclose the profitable conflict of interest on mandatory reporting forms.

Sources familiar with the investigation have said Cantrell also got Fromm to put his adult children, John and Jennifer, on her company's health insurance plan even though they were not her employees.

The indictment did not specifically identify them by name, and they have not been accused of any wrongdoing.

Fromm, 66, is expected to testify against Cantrell. She has already pleaded guilty to obstruction of justice and tax evasion, and her sentencing hearing has been rescheduled until after Cantrell's trial on March 31.

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