The Department of Justice announced on Monday, April 18, that a former gaming executive once connected to Terre Haute's casino aspirations pleaded guilty to federal offenses in connection with illicit campaign contributions.
Former Executive of an Indiana Casino Tried to Cheat IRS
According to Tribune-Star, former vice president and general counsel of gaming company New Centaur LLC, John Keeler 72, of Indianapolis, pled guilty to defrauding the casino firm by misrepresenting payments to a political party as deductible business costs on its federal tax return.
Prosecutors say Keeler paid $41,000 in New Centaur company to a middleman, Maryland-based political consultant Kelley Rogers, and told him to send $25,000 to a local political party committee in Marion County to help it with its efforts.
The idea, as per Daily Journal, was to transfer thousands of dollars from New Centaur's accounts to Rogers, who would then send the funds to a 2016 congressional candidate's campaign.
Rogers is accused of fabricating invoices and agreements to make it look as though he was delivering services for New Centaur, as well as recruiting straw donors to contribute $2,700 each to Waltz's campaign.
To hide the true nature of the transaction, Keeler had the $41,000 payment to Rogers included as a deductible business cost on New Centaur's federal tax return submitted with the Internal Revenue Service.
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The plea was announced by U.S. Attorney Zachary A. Myers for the Southern District of Indiana, who was joined by officials from the Justice Department, FBI, and IRS.
Prosecutors agreed to drop five other charges against him as part of the plea arrangement.
Daily Journal reported that Keeler was charged with one count of making illegal corporate contributions, one count of obstruction of justice; one count of conspiracy to make illegal corporate contributions, false statements and to obstruct justice and one count of making false statements related to the scheme.
Former Congressional Candidate Brent Waltz Pleaded Guilty Last Week
Brent Waltz, 48, of Greenwood pleaded guilty on April 11 to felony counts of making and receiving conduit contributions, as well as making false statements to the FBI.
The former Indiana State Senator and 2016 candidate for U.S. Congress was arrested and charged with one count of obstruction of justice; one count of conspiracy to make conduit contributions, false statements and to obstruct justice; one count of making and receiving conduit contributions; and two counts of making false statements related to the scheme.
According to the plea agreement filed in court, Waltz's remaining charges will be dismissed as part of his plea agreement.
Keeler might be sentenced to three years in prison, while Waltz could be sentenced to ten years. The majority of sentences are shorter than the maximums.
The Department of Justice said that both defendants will face sentencing at a later date.
