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Wednesday, June 03, 2009

Ind. Decisions - "Attorney fees, treble damages to be sought by state in sidewalk case"

Updating this ILB entry from May 22nd, which quoted a report that "U.S. District Court Judge James Moody entered a default judgment in the civil case against Pastrick and former aide James Fife III," today Andy Grimm of the Gary Post-Tribune continues his reporting on Pastrick:

HAMMOND -- Former East Chicago Mayor Robert A. Pastrick could be required to pay the city and the state three times the $24 million that was spent 10 years ago on a sidewalks-for-votes scheme and pay for lawyers hired by the state to bring a civil racketeering lawsuit against him and top administration officials.

State Attorney General Greg Zoeller on Tuesday filed a brief outlining the case against Pastrick and former aide James H. Fife III. On Monday, U.S. District Judge James Moody entered a default judgment against the pair. * * *

"This case is about more than just collecting monetary damages that may or may not be paid. It is about rehabilitating the city government of East Chicago of the historic legacy of corruption from the Pastrick era," Zoeller said in a statement Tuesday.

Moody will determine the amount of damages to award after a hearing June 6 and the state is entitled to "treble damages" and attorney fees under racketeering statutes. The state hired former federal prosecutor Patrick Collins to lead their legal team, and Collins' firm so far has billed the state more than $373,000.

Twenty-five defendants were named in the lawsuit, and all but Pastrick, Fife and former city councilman Frank Kollintzas reached settlements. Kollintzas fled to Greece to avoid prison on a federal criminal conviction tied to the sidewalk scheme.

The state has collected more than $1.2 million from other defendants and have claims pending for $17 million more, Zoeller's office said. A massive judgment against Pastrick likely won't mean a significant payday for the city.

The octogenarian likely will file for bankruptcy protection, and likely has few assets the state could recover.

Posted by Marcia Oddi on June 3, 2009 01:23 PM
Posted to Ind Fed D.Ct. Decisions