Company Lost Casino Subsidy Last Week
Indiana Attorney General Steve Carter last week made his strongest case yet that those connected with a lucrative casino side deal brokered by former East Chicago Mayor Robert Pastrick repeatedly misled state gambling regulators. Today, Resorts East Chicago, the present casino owners, will present the Indiana Gaming Commission with a plan to reallocate the more than $2 million a year that had flowed to East Chicago Second Century Inc., a for-profit development company run by Pastrick allies Thomas Cappas and Michael Pannos.
Second Century was promised a three-quarter of 1 percent stake of East Chicago riverboat revenues as early as 1994, when Pastrick agreed to support Showboat Casino's plan to locate in his city. Carter's office asserts that the alleged deception dates back just as far. "This commission has had some conflicting statements presented to it over the years," Chuck Todd, one of Carter's chief deputies, told commissioners last week. "In 1994, when you were first considering the Showboat license, Showboat represented that Showboat had formed East Chicago Second Century Inc., a for-profit corporation, even though it was formed by Mr. Pannos."
June 15, 2006
Posted By Bob Hartman
Staff Editor, CasinoGamblingWeb.com
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