Krieg Calls for Feds to Investigate McDermott Campaign Finance Issues

by Ken Davidson

In the wake of recent FBI activity in Lake Station, political activist and former county surveyor candidate Eric Krieg planned to call on the Lake County Board of Elections to refer Mayor Thomas McDermott’s campaign finance reports to the office of United States Attorney David Capp. Krieg will have to wait until the Board meets in December to present his allegations as this month’s meeting was cancelled.  In a statement provided to the press prior to the planned meeting, Krieg compared McDermott’s payments to his wife with the recent conviction of Former Congressman Jesse Jackson, Jr. He outlines several allegations of impropriety in the reports including:

-Payments to Kelly Consulting, Inc. of over $300,000.  The payments ranging from $3,000-$4,000 per month span a period of over ten years. Krieg alleges that Kelly Consulting, Inc. is owned by Marissa McDermott and that Indiana law requires a written contract on file with the election board in order to pay family members for campaign services;

-a one time consulting fee paid to David Woerpel. This payment is alleged to have been in the amount of $6,000 and paid around the time that Woerpel was charged with a crime in Lake Superior Court;

-A single payment of rent for McDermott for Mayor Headquarters in the amount of $1,000. Krieg alleges that free rent should be reported as an in-kind donation on the finance report.

Krieg explained that the contributions to Kelly Consulting, Inc continue in non-election years. The address for Kelly Consulting is listed as 7134 Knickerbocker, Hammond, IN 46323. Documentation was provided from the office of the Indiana Secretary of State showing that Marissa McDermott is listed as President of Kelly Consulting, Inc. Total payments to Kelly Consulting from the McDermott campaign for the years 2005 to present totalled just over $330,000.

The lack of payment to Kaplan controlled Pyramid Development may be the most damaging allegation. As reported previously, Pyramid Development is owned by McDermott friend and contributor Greg “Krazy” Kaplan. Kaplan later sold the building to the Purdue University Foundation for a reported $1M. Politically connected WJOB radio has announced that they will move into the building sometime next year. So far, they are the only announced tenant.  While not illegal on its face, the entire transaction certainly seems to require some explanation. To date, we have heard none.

You can see Mayor McDermott’s 2011 campaign report here:  http://lwvcalumet.org/files/cfb.mcdermott_jr_thomas_m_2011_annual_rpt.pdf

Johnson Sentencing Delayed Again

by Ken Davidson

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Amid reports of uncharacteristic confidence on the part of the Defendant, the sentencing of David Johnson of A-1 Dave’s Tree Service has been continued again.  The official reason given was “a dispute of guideline applications in this matter.”  Sources familiar with the process continue to stress that this is an unusual number of delays in the matter.  Such delays usually indicate cooperation with the Government-not good news for Lake County Democrats.  The Motion indicates that Assistant United States Attorney Gary Bell had no objection to the continuance.  The hearing will be held on February 6, 2014 absent any further delay.

Johnson pled guilty to bribery involving federal programs in October 25, 2012.  Co-Defendant Alfonso Salinas subseqently pled guilty on May 13, 2013.  Salinas was sentenced on August 13 and reported to the Bureau of Prisons on October 1 to serve his 42 month sentence.

Johnson previously had been sued for racketeering by the Attorney General of Indiana in the “Sidewalks for Votes” scheme in East Chicago.  Despite the fact that he settled that case, Dave’s Tree Service continued to receive local government contracts.  This was particularly the case in Hammond where Johnson was the preferred contractor for tree services.  Dave’s Tree still does work in the City of Hammond but it is not clear at this time if any of those jobs are a result of City contracts.  

 

2 Men Arrested for Shooting Deer Decoy

Covington, IN – Indiana Conservation Officers arrested Charles D. Hayes II, 21, of Danville, IL and Brandon L. Gates, 21, of Perrysville, IN after they shot a deer decoy and led officers on a pursuit that crossed state lines late Saturday night. After receiving several complaints of shots fired from the roadway in rural Fountain County, Indiana Conservation Officers placed a deer decoy at the location. Shortly after 10:00 p.m., a black Dodge pickup pulled up and shined the decoy. A few seconds later a single gunshot rang out from the vehicle. Officers attempted to initiate a traffic stop on the vehicle. The vehicle failed to stop and led officers on a pursuit that crossed into Vermillion County, Illinois before the vehicle enter back into Indiana on US136 and pulled over. Both occupants of the vehicle were taken into custody and transported to the Fountain County Jail without incident.
Hayes II and Gates are facing multiple misdemeanor fish and wildlife violations along with felony fleeing in a motor vehicle.

Former EC Library Director Gets 4 Months Home Detention in Tax Fraud Case

Gazette Staff

Manuel Montalvo, 39, of East Chicago, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 24 months of probation, with home detention of 4 months, and a $1000.00 fine after pleading guilty to the felony offense of filing a false tax return for the tax year 2009. According to documents filed in this case, Montalvo admitted that he provided false information about deductions including that he had $23,382 in business expenses and $17,063 in medical expenses. In fact, both figures were made up. Montalvo filed the false returns while employed as the Director of East Chicago Public Library. This case was the result of an investigation by the Internal Revenue Service and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Gary Bell.

Two Sentenced, One Pleads Guilty in Unrelated Firearms Cases

Gazette Staff

The office of United States Attorney David Capp has announced that two individuals have been sentenced in unrelated firearms charges this week.

George Black, 53, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 120 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a stolen firearm. According to documents filed in this case, Black has 3 prior felony convictions for burglaries in Wisconsin and was on probation for the most recent conviction at the time of his arrest. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Indiana State Police. This case was prosecuted by Assistant United States Attorney Nicholas Padilla.

Brittini Anderson, 27, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 24 months of supervised release after pleading guilty to the felony offense of making false statements in the acquisition of a firearm. According to documents filed in this case, Anderson straw purchased a firearm that has not been recovered by law enforcement. Based on her interview with ATF agents, Anderson admitted that she purchased a 9mm pistol for a person she knew could not buy a gun. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Nicholas Padilla.

Additionally, Shamekka Thomas, 29, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of making false statements in the acquisition of a firearm. Sentencing has been set for 1/30/14. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Hobart Police Arrest Lowell Burglary Suspect

Gazette Staff

During the early morning hours of November 18th, 2013, the Hobart Police Department arrested John Earl Lucas, Jr, formerly a resident of Lowell, IN, outside of the Dollar Inn, located at 1855 Mississippi Steet, Hobart, IN, on an arrest warrant. The arrest warrant was filed by the Lowell Police Department October 24th, for Receiving Stolen Property and False Informing, related to a burglary reported in the 200 block of Oakley Avenue on October 6th, 2013. The investigation regarding other burglaries reported October 21st-22nd continues and we anticipate additional charges against Lucas, Jr. in the near future. We would like to thank the Hobart Police Department and the Great Lakes Regional Fugitive Task Force of the U.S. Marshal’s Service for their assistance in apprehending Lucas, Jr.

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Hobart Police Arrest Lowell Burglary Suspect

Gazette Staff

During the early morning hours of November 18th, 2013, the Hobart Police Department arrested John Earl Lucas, Jr, formerly a resident of Lowell, IN, outside of the Dollar Inn, located at 1855 Mississippi Steet, Hobart, IN, on an arrest warrant. The arrest warrant was filed by the Lowell Police Department October 24th, for Receiving Stolen Property and False Informing, related to a burglary reported in the 200 block of Oakley Avenue on October 6th, 2013. The investigation regarding other burglaries reported October 21st-22nd continues and we anticipate additional charges against Lucas, Jr. in the near future. We would like to thank the Hobart Police Department and the Great Lakes Regional Fugitive Task Force of the U.S. Marshal’s Service for their assistance in apprehending Lucas, Jr.

Sources Say LS Mayor, Wife Targets of FBI Probe

by Ken Davidson

 

On Friday FBI agents walked into the offices of Lake Station, Indiana at 1969 Central Avenue and ordered all employees to step away from their computers according to sources close to the investigation.  Although the Gazette has confirmed no computers were seized, the FBI reportedly got all the information it needed by using high tech equipment to download from the City servers.  This represents a significant step in an ongoing investigation.  You will recall that the indictment and arrest of George VanTil, the most recent indicted politician in Lake County, was preceded by a similar public FBI raid.  Not only is judicial review in the form of  a warrant required before FBI agents can take such action, the US Department of Justice has strict guidelines dealing with public corruption cases.

Sources say that the crux of the investigation centers around two incidents.   The first relates to using campaign funds for personal use.  Sources tell me this aspect of the case is unclear.  Several point to various expenses which appear to be personal but there is none that stands out when viewing reports of similar local politicians.

The second investigation is related to an “add-on” charge by a street contractor.  According to a source close to the investigation, the Mayor suggested he would get an additional charge approved on a construction project that was in progress.  In exchange, the contractor would pay the Mayor’s wife a sum of money.  Such charges are often scrutinized by the State Board of Accounts as well as Federal Prosecutors because they can be used to award bids to friendly contractors.  In many cases, the bid comes in low and the contractor then submits additional charges which are approved by the municipality.  Other contractors have no opportunity to compete because they are not assured of having additional charges approved later.  In this case, however, sources say the contract was awarded prior to the time of Soderquist’s election.

Soderquist is also on the governing board of the Lake County Democratic Organization.  If indicted, Soderquist would be the second current sitting member who is under federal indictment.

A Lake Station construction contract appears to be at the center of a recent FBI raid on city offices.

$14M in LG G2 Phones Stolen In Gary, Could Delay Launch

by Ken Davidson

Gary, Indiana is once again making national news. A truck containing 22,500 yet to be released LG G2 for Sprint. The phones were worth an estimated $14M at retail price. As reported by CNET, the truck was stolen at 6:30 p.m. on October 24. The Indiana and Illinois State Police as well as the FBI were notified. The thief was eventually caught in Louisville, Kentucky after he crashed the truck. Kentucky State Police report that they arrested 40 year old Juan Perez-Gonzalez after being contacted by the FBI about the heist. The FBI is now investigating and believes the theft may be a part of a theft ring.

The theft could delay the launch of the popular smartphone on the Sprint network. Other carriers have already launched the phone, but this shipment was destined to be a part of Sprint’s nationwide launch this month.

Man who stole $14M worth of LG G2 phones crashed in Kentucky

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St. John Man Charged with 10 Felonies in Schererville Case

Gazette Staff

On November 6th, 2013 Detective Patrick Rosado filed 10 Felony Counts against Terry Wayne Kilburn, age 31 of St. John, In.. The charges consist of Fraud, Forgery, Identity Deception and Theft.

The charges are a result of an investigation where Kilburn used the debit card of a person that had lost their wallet while at Low Bob’s Discount Tobacco in Schererville. Charges were made on the victims account at Speedway Gas in Dyer, IN. , Walmart in Schererville, IN, Best Buy in Highland, IN, and Speedway Gas in Schererville, IN..
Video surveillance of these locations positively identified Kilburn as the person using the debit card at these locations.

Terry Wayne Kilburn is currently at large and wanted through Lake County on warrants.

Brian Neyhart
Patrol Commander
Schererville Police Department
25 E. Joliet St.
Schererville, IN 46375