03-12-2010 | FEC Gratified by Federal Court Findings
For Immediate Release
Contact: Russell G. Taylor
219-392-4225 telephone
Foundations Gratified that Federal Court Found City’s Claims Against
Foundations Were “Certainly Improper” and Without “Any Factual Basis”
The Foundations of East Chicago are gratified that Federal Judge Moody totally rejected the State and City’s eleventh-hour attempt to drag the Foundations into the case against former Mayor Pastrick and some of his associates. While he awarded damages against the former Mayor and other defendants, Judge Moody spent 13 pages explaining why the State and City’s last-minute claims against the Foundations were entirely unfounded.
Judge Moody said the State and City’s effort to order a forensic audit of the Foundations, and to cancel the agreements that fund the Foundations’ charitable and community grants, scholarships and other projects benefitting East Chicago citizens, “offends” due process and was “certainly improper.” He also said the State and City had not shown “any factual basis” for investigating Foundations financial records, and had not even alleged any wrongdoing by the Foundations in their complaint. Indeed, the State and City’s complaint had actually said the agreements funding the Foundations were “properly pre-approved” by the Council (Judge Moody’s emphasis), in contrast to the misuse of casino funds that went to the City itself.
Foundations Executive Director Russ Taylor stated: “This is another gratifying victory vindicating the Foundations in the long line of battles we have been forced to fight against the City’s persistent attempt to undermine our efforts to improve East Chicagoan lives, and to seize our funds for Mayor Pabey’s administration use. Our Foundation will continue to cooperate with the Attorney General’s office, the Gaming Commission and others, as we continue our good work to address the community’s needs.”
The Foundations long ago opened their books to the Attorney General’s office as part of their lengthy investigation which recommended no action against the Foundations. Since 1997, the Foundations have invested in a wide range of education, public safety, health, youth development, community economic development and family support services to improve East Chicago and benefit its citizens.
(30)
Read more in News