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Friday, June 13, 2008
Ind. Gov't. - More on "Dem AG candidate questions hired gun in E.C. RICO case"
Updating this ILB entry from June 6th, quoting from a story by Patrick Guinane of the NWI Times, Guinane has a follow-up story today headed "Pence worked other side of E.C. corruption case." From the story:
INDIANAPOLIS | When Democrat Linda Pence announced her candidacy for state attorney general last week, she said she would need to undertake an extensive review before committing to continuing the civil racketeering case against former East Chicago Mayor Robert Pastrick.Pence, an Indianapolis attorney, didn't mention that she already is familiar with the other side of the corruption case. Federal court records show Pence represented Rieth-Riley, a paving company that paid $625,000 to settle claims it helped city officials conspire to divert more than $24 million in public money to a 1999 sidewalks-for-votes scheme. * * *
Pence said she would be willing to entrust the East Chicago case to subordinates or outside counsel if her review identified a potential conflict of interest.
Although Rieth-Riley admitted no wrongdoing in its 2006 settlement, the state had accused the company of playing a central role in a scheme to help East Chicago officials legitimize the paving bonanza that preceded Pastrick's 1999 re-election. The original civil lawsuit said the company signed off on a phony contract after other contractors already had helped pour free driveways, patios and sidewalks for city voters.
In 2005, Pence filed a countersuit in the case, contending that Rieth-Riley's contract with the city contained a clause protecting the company from liability if any part of the pact was deemed "contrary to the law." A year later the company forged a settlement that included a pledge to cooperate with investigators.
"Of the $1.3 million recovered in the RICO case, Rieth-Riley paid a significant settlement of $625,000, which is the largest to date and represents twice the amount paid to outside counsel," Carter spokeswoman Staci Schneider said Thursday.
More than a dozen of the 27 former city officials and contractors originally named as defendants in civil suit have reached similar settlements.
Posted by Marcia Oddi on June 13, 2008 08:15 AM
Posted to Indiana Government