Loading ...It’s Not Watergate, But…
Indianapolis City-County Council Republicans are introducing an ordinance that would call for a special committee to be formed to investigate Council President Monroe Gray. Both state and local laws allow for the creation of a panel with appropriate subpoena power. Republicans say recent actions and alleged indiscrepancies on the part of Gray make the formal investigation necessary.
They cite Gray’s reported failure to disclose his business connections with a city contractor as well as his being less than forthcoming regarding his wife’s involvement in the 300 East Bar-Restaurant.
And if Gray did not have enough trouble it is also being reported that he is connected with a fire fighter’s charity that had a city bank account to write checks, however City-Comptroller Bob Clifford, who has oversight authority, was not aware of this.
Democrats will accuse Republicans of playing politics, but with the recent pea shake busts, something much bigger is taking place in the Circle City. It’s not Watergate, but something is definitely not right in the State of Marion County.
March 17th, 2007 at 12:32 pm
Do the Republicans even have anybody filed to run against Monroe Gray in that District or will they have to scrounge up a sacrificial lamb appointed by the GOP County Chair? The voters sure do like Monroe Gray - bigtime!
March 17th, 2007 at 12:44 pm
The second bust of the illegal numbers operation on Roache Street case is going to the US District Attorney’s office. Violation of the RICO Statute is a Federal case. How did those people running the numbers operation on Roache Street think they could get by reopening at the same location. I’d say Sen. Howard annd wife are looking at a date in Federal Court.
Your right Abdu, there’s a lot more coming down real soon.
I’m surprised the national media hasn’t got a hold of the story yet. BTW, where IS the Mayor and the Sheriff?
March 17th, 2007 at 12:47 pm
Don’t the Republicans have any confidence at all in Carl Brizzi? After all, he’s their newly re-elected County Prosecutor. Isn’t he supposed to be the “go-to guy” for those kind of allegations?
Why do we need more government bureaucracy to deal with the whims of a disgruntled minority on the Council?
March 17th, 2007 at 1:21 pm
Wilson46201,
I don’t think you understand. Brizzi’s office does not prosecute RICO cases. They go the U.S. District Attorney. Who knows, even Brizzi may end up caught in the web too.
The scale and depth of all this corruption crosses party lines and has been going on for years. It’s now come to a head and is taking on a life of it’s own. If the CCC Repubs do as it is stated and open an investigation I hope they don’t live in glass houses.
Perhaps the best thing for Monroe to do would be to step down from his council seat and let the Dem Precinct Com’s elect someone in his place. Of course that call is up to Mike O’Connor though. Interesting isn’t it?
March 17th, 2007 at 3:30 pm
RICO - money laundering, racketeering, influence peddling, fraud, tax evasion, and multiple related crimes are ALL on the table in the case of the peashakes.
I suspect that the recent busts are a panic response in an attempt to cover before cutting and running, but only time will tell.
Also, somebody (JJ) mentioned national media attention. It seems to me that it would probably be a good thing in this case and will force authorities to bring some justice into play.
March 17th, 2007 at 4:14 pm
…Wilson’s natural answer is to obfuscate the real issue, and try to deflect criticism of Prez Gray.
Who is, by all natural definitions, a politcal thug.
Whether they’ve found someone to run agains him is immaterial. He scares off anyone who “dares” to question him. He has allegedly used city property improperly (his IFD car). He opened a construction business to capitalize on his presidency. He bounced checks on that company’s account. And now he’s a signatory on a city fire department account? And where’d he get the money for his wife to invest in 300 East, if they’re in bankruptcy, he’s had his city salary garnished, and he’s bouncing checks? Why doesn’t ANYone see the problems here? Why would he even open that Pandora’s box?
This man has no shame. And, apparently, no moral compass.
March 17th, 2007 at 6:10 pm
This is not a political matter as stupid Wilson would have you think. It is time to clean up the corruption in ctiy-county and township government. We the people want government cleaned up from the top to the bottom regardless to who’s ox will get gored. Bring on the investigations.
March 17th, 2007 at 8:00 pm
On the Internet nobody knows you’re a dog.
March 17th, 2007 at 10:01 pm
JJ, the national media is pre-occupied with other things in the news than the punk happenings of Indy. If the National Democratic Party had any sense they would bitch slap everyone around the country and tell them to get their houses cleaned up NOW, before the big push for the White House. Don’t want any dumb ass Democrats out there doing anything to ‘dirty’ the name.
Gray is a disgrace and an embarassment. Ba-bye!
March 18th, 2007 at 12:32 pm
If Gray had an ounce of common sense, not to mention perspective, he would resign his Presidency, if not his seat. However, much like Ron Gibson, and on a bigger scale Bill Clinton, rather than realize that the job, one of public trust and confidence is bigger than himself, Gray believes that HE is the job..his self identity, if you will.
Of course, this behavior is atypical of the Democratic majority of the Council the last 4 years. Given greater responsibility and power than ever before previously, the Party, and its leadership, have treated the task similarly to a small child who wields Daddy’s gun, which is to say, carelessly, recklessly, with end results not pleasant, and inevitably tragic.
Marion County- You have no one to blame for this ongoing debacle but Yourself.
March 19th, 2007 at 8:26 am
Alot of People Looking for Legal Help
After recent arrests, their appears to be a more urgent effort to legalize pea shakes, poker houses, cherry masters along with getting slots at the horse tracks and selling off the lottery.
Bar Owners to Meet With Lawmakers on Electronic Gaming
http://www.insideindianabusiness.com/newsitem.asp?ID=22348
March 19th, 2007 at 8:28 am
Follow the money.
March 19th, 2007 at 2:47 pm
It’s about time. There should be enough tangible evidence to boot this thief out of office for good. He’s an embarassment to our district. I know many people in my neighborhood had no idea what he was really about. Fortunately Abdul’s coverage of Monroe Gray’s work and ethics have shed light for many of us who reside in this thief’s district.
March 19th, 2007 at 10:34 pm
If Councilor Gray is as awful as some of you allege, one would think there’d be a spirited Republican primary battle in that District since defeating Monroe would be a shoo-in, right? It should be a guaranteed win for the GOP candidate if Gray is as bad as some folk imagine!
Or is all this flim-flammery against Gray just smoke and blather and huff-and-puff?
March 20th, 2007 at 7:02 am
Small fact gets in the way of your theory, Wilson:
The district is over 60% Democratic.
Next point?
Look, the man has no scrupples. He set up a construction business solely to benefit from his presidency, and that business has failed. So much so that his city paycheck(s?) is/are being garnished to pay for bounced checks and judgments.
He put up his wife’s name, and then dodged questions about it, as an investor in 300 East. With what money, if he’s bankrupt?
He travelled to the Super Bowl using Colts-provided (face value) tickets. Where’d he get the money?
He parkled and sat in a city-provided car in front of a known peashake house, and then denied knowing it was a peashake.
Has this man no moral compass? Does he foolishly think others aren’t asking these same questions, including some in his own caucus?
Maybe, just maybe…the mayor’s and sheriff’s sudden belief in gambling law enforcement, is the beginning of the end for this “public servant”.
We can only hope.
March 20th, 2007 at 7:31 am
Finally! Peace and quiet on Roache Street in the morning. Use to be that the Pea Shakers would arrive about 5:30 and Pea’ers arrived at 5:31. But now…I can enjoy my mornings on my front porch…at least until the Ritz folks arrive. They’re not happy either. The neighbors went after the Ritz ATC Permit. We waiting for the conclusion of law from Hearing Judge Choe. Watch for this place to get busted again since their last bust was for 14 minors in the place. Then there are two more places to go. Word on the street is that Frenchie’s is drug and theft infested. And nobody ever sees a customer leave Butler’s Pizza…with a pizza. Hummmm!
March 20th, 2007 at 9:31 am
Abdul has just reported that the Dems on the CCC are going to pursue a bi-partison investigation into Gray’s abuses.
My take on the Dems action following th Repubs is damage control. Gray will take the fall for the higher ups that are really running the gambling operations.
Brizzi needs to back off and call the US District Attorney in on this. This thing runs a lot deeper than just Gray and can’t help but smell a coverup in the making.
March 20th, 2007 at 10:06 am
Abdul has just reported that the Dems on the CCC are going to pursue a bi-partison investigation into Gray’s abuses.
My take on the Dems action following th Repubs is damage control. Gray will take the fall for the higher ups that are really running the gambling operations.
Brizzi needs to back off and call the US District Attorney in on this. This thing runs a lot deeper than just Gray and can’t help but smell a coverup in the making.
Posted by Anonymous at March 20, 2007 09:31 AM
You’re not the only one. Have you noticed that none of the other peashakes are being busted? At this point I can only consider the recent busts a small part of a larger PR effort to take the heat off of the peashakes. Gray stuck his neck out in other ventures and he’s gonna take the fall because of it. And he knows it, too.
I won’t be surprised if at least one more lackey - like Senator Howard - is handed over if things get any hotter. The folks running the peashakes are struggling to keep their operation going and they’ll sacrifice all loyalty to their supporters for the sake of keeping the profits moving.
If I were a Howard or a Gray I’d be making a few quiet phone calls to authorities - from my attorney’s office. From what I’m seeing, these two are gonna go down anyways. They may as well take the initiative and quietly get involved in the process, to make it easier on themselves. They may even salvage some semblance of honor in the process.
March 20th, 2007 at 10:44 am
Abdul, Vic, LEO’s:
Here’s a basic primer from a good source on laundering. It’s the first of a two-part series. I’ll post part two next. If you follow the link to the story you can click on “Printable Format” to see the whole piece:
http://www.moneylaundering.com/ArticleDisplay.aspx?ID=1638
Expert gives pointers to state, local agencies on laundering probes
Dear MLA,
I am a police chief of a medium-sized city in the Midwest. As you know, the new U.S. National Money Laundering Strategy promotes improved cooperation among local, state and federal agencies in money laundering control efforts. I want my department to be involved in these new initiatives but we have very little experience in money laundering enforcement. What are the basic elements of a money laundering investigation?
Learning the ropes
Dear Learning:
Considering the federal grant money that the new U.S. money laundering strategy will facilitate to state and local agencies that have active laundering enforcement programs, we’re sure you’re not the only local official with a new-found interest in these matters.
To answer your question, we turned to James Richards, author of the book “Transnational Criminal Organizations, Cybercrime, and Money Laundering: A Handbook for Law Enforcement Officers, Auditors, and Financial Investigators.” Richards, who is now director of FleetBoston Financial Group’s newly-created Financial Intelligence Unit, previously directed the Asset Forfeiture Group of the Middlesex District Attorney’s Office in Cambridge, Massachusetts. The following guidance, extracted from his book, discusses the first two steps that a laundering investigation should take. Next month, Dear MLA will report on steps three and four.
Step One: Identify the unlawful activity
Most local laundering investigations begin as an investigation into a target’s unlawful activity, whether it be drug dealing, gambling, smuggling, or something else. It is imperative that investigators ensure that this unlawful activity is one of the “specified unlawful activities” that give rise to a laundering or forfeiture case under the appropriate statute. All known money laundering and forfeiture statutes in the U.S. require that, in order to prove a laundering offense, the target must have engaged in a financial transaction using the proceeds of an “unlawful activity.” Under the federal laundering statutes (Title 18, USC Secs. 1956 and 1957), the government must prove that the funds were derived from at least one of about 175 “specified unlawful activities” that cover a wide range of crimes including drug trafficking, fraud, banking violations and racketeering.
Step Two: Identify and track the financial transactions
This is the “show me the money” part of the investigation. Most local laundering investigations arise from a narcotics arrest or investigation. Typically, a street-level dealer’s arrest leads to an investigation of his supplier’s drug activities. Investigators should identify and track the target’s financial trail using:
Documents seized during execution of search warrants. Look for money exchange receipts, brokerage statements (often the target will retain only envelopes with the broker’s return address, which is enough to start investigation of accounts the target might hold), wire transfer and postal money order receipts, safety deposit box records, automobile records, credit card statements, casino membership cards and documents relating to travel agents (who present laundering opportunities by allowing targets to purchase open return tickets and sell the tickets later).
Law enforcement databases. The database of the U.S. Treasury Department’s Financial Crimes Enforcement Network, which can be accessed by state and local agencies through FinCEN’s Gateway system, should be the starting point for all financial investigations.
Commercial databases. Credit bureau reports and legal or court dockets, which may lead to witnesses who have been sued or who sued the target, may provide a wealth of information about the target.
Public records. Corporate records, social security, bankruptcy court files, divorce and probate court records, and real estate public records also can produce great dividends.
Licensing bureaus. Motor vehicle records, marriage licenses, liquor licenses, and notary public records may also yield good results.
Often the target will launder dirty money through a storefront business, such as a pizza parlor, towing business, money transmitting business or any other cash-intensive business. Investigators should be alert to money transmitters that also sell pagers, beepers, and cellular phones because they are often a “one-stop” shop for drug dealers. If the target has some connection to a small business, the investigator should consider reviewing the business’s books to see if legal revenues are being commingled with illicit money and to compare sales and profit ratios with other similar businesses, determine the volume of business by observing traffic patterns, checking with suppliers and wholesalers to see if the products purchased are consistent with the reported sales, analyzing bank records and deposit patterns, and comparing deposits with sales. Good luck.
March 20th, 2007 at 10:49 am
Abdul, Vic, LEO’s:
Here’s part two of the laundering primer. Again, you can see the original if you follow the link and click on “Printable Format”:
http://www.moneylaundering.com/ArticleDisplay.aspx?ID=1651
Step Three: Perform a Financial Analysis of the Target
There are two main tools used to determine if the target of a money laundering investigation exhibits spending habits that reflect an “honest living.” Both will determine if a target has acquired assets that exceed his “legitimate” income in order to determine if his income came from “illegitimate” sources.
The first is known as a “net worth method,” for which the IRS has become famous and whose most celebrated application was against the famed late mobster, Al Capone. The net worth method is generally used where the target has conspicuous assets. It is useful when his spending patterns reflect acquisition and disposal of tangible assets.
In United States v. Sorrentino, the U.S. Supreme Court described the method: “The government makes out a prima facie case… if it establishes the defendant’s opening net worth… with reasonable certainty and then shows increases in his net worth for each year in question which, added to his non-deductible expenditures and excluding his known not-taxable receipts for the year, exceed his reported taxable income by a substantial amount…. The jury may infer that [increases in his] excess net worth… represent unreported taxable income if the government either shows a likely source… or negates all possible non-taxable sources.”
If the target has conspicuous spending habits, investigators should conduct a “source and application of funds analysis.” That is useful when spending patterns are of a transient nature. The formula for an S&A analysis is simple: unidentified cash equals total cash expenditures less total cash income.
Step Four: Freeze and Confiscate Assets
The key to any successful seizure is timing, as most launderers – particularly those who are intermediaries in the laundering cycle – will accumulate funds over a period of time, then disperse them in blocks at the end of that period. It would not be fruitful to seize a business or other bank account, under pertinent asset forfeiture laws, immediately after large withdrawals. Good luck.
March 20th, 2007 at 12:14 pm
Is there any particular reason that racketeering charges have not been filed with the US District Attorney against those who were busted at the Roache Street numbers operation. One arrest is a class c. The second arrest for the same falls under RICO. If Brizzi holds on to the Roache Street cases then he’s up to his nuts in this mess too.
Somebody reading the RICO differently that I am on this thing on Roache Street?
March 20th, 2007 at 2:19 pm
Shorebreak,
Everywhere I look on illegal gambling and other forms of racketeering in Indianapolis the names Frank E. McKinney,Sr, and Frank E. McKinney, Jr. keep coming up. Again, we are back to the Fletcher American Bank (early) then Fidelity (later) and American Fletcher National Bank (the old AFNB now Chase).
Mckinney,Sr. died in 1974 and McKinney,Jr. who died in midair plane collision in 1992. Who is still around that was close to McKinney, Jr.?
McKinney,Sr. had dealings with Jimmy Hoffa and there was a local attorney named David Probstein that was involved back in the late 50’s. Probstein had a law firm in Indy until he left the state after testifying against Hoffa.
Somehow the numbers operation is being ran by very prominant local white businessmen. The operation somehow was passed at some point to someone Frank McKinney,Jr.knew and did banking business with. Had Democrat and Republican ties as money knew no party in a close group. I believe a new generation of Indianapolis power brokers are running the operation. Names of Board members who sold to AFNB to Bank One would be a start. Who was their legal team? I’m trying to be objective on this thing but it’s starting to involve some of the old money of Indianapolis. Need more information.
March 20th, 2007 at 4:02 pm
On The Green In Two:
Frank McKinney is definitely a good lead into the possible beneficiaries in Peashakes. He was chairman of the DNC for several years. Like the RNC, that kind of appointment doesn’t happen unless you’re a willing participant in the use of laundered funds.
Additionally, the teamsters have a long history of working out backdoor deals with the DNC in contribution swapping and other election issues. The profits from illegal enterprise have often been at the heart of this funding.
Of course, that adds another possible dimension to the longevity of peashakes in Indianapolis. If they are indeed tied directly to DNC funding - which could easily extend to funding of candidates on a national level - then it also makes sense that they’re not being operated by the DNC, but by other enterprises who use them to fund DNC campaign efforts.
Something else to consider is that these activities have remain uninterrupted for years by the GOP as well as by the Dems. Why? Because they have similar fund raising activities in other locales. “You keep your hands off my stack and I’ll keep my hands off yours”.
Why else would this activity, laundering, fraud, racketeering, etc. be allowed to continue? It reaches up to some very high places at the national level in government.
Which makes me wonder once again why the DoJ has failed to move after three years and close to $100 million in laundered funds has passed through the city. This ain’t no small time racket.
March 22nd, 2007 at 4:47 am
Shorebreak:
If your scenario is true, this explains why the game are not legal. The operators would have to report all income to IRS. Illegal gambling and narcotics sales is big business in this country to the tune of trillions of dollars. Untaxed revenue in whose pockets?
March 22nd, 2007 at 8:21 am
Anon 4:47,
As you stated, this is only a scenario. But it’s based on fact (DNC/teamsters/election funding/McKinney illegal gambling).
That includes numerous legal records - many from Congressional hearings - documenting DoJ interference in similar investigations. That’s a tough nut to swallow, but to deny the fact that it’s occured in the past and to omit the possibility that it’s taking place in Indy would be tantamount to sticking one’s head in the sand. Based upon precedence, it simply cannot be ruled out.
It seems to me that in light of current circumstances, in light of past history tied directly to Indy via McKinney, the DNC, illegal gambling, teamsters, and election fraud, and in light of documented DoJ involvement in similar matters, it would be a miscarriage of justice not to seriously consider this as one of several possible scenarious that is behind the continued operation of peashake houses.
Even after the recent busts and media attention, they are continuing to operate. The pot’s been stirred but it’s gonna take much more than a few blogs and posts on Indystar to see some real results.
March 22nd, 2007 at 1:22 pm
Some of the shake houses are indeed up and operating again, at least those that were not hit in the recent busts. Generally those that get busted simply move to a new location. I have my eye on the operation at Sherman and Mass Avenue since it’s right in the Martindale-Brightwood Revitalization area.
I’m not such a fan of the O’Rielly Factor on Fox but could you imagine if he or even rabble rouser Nacy Grace of CNN were to get undercover video and recordings of what’s going on with number racketeering in Indianapolis and gave their critique as to why ANY major city, especially like Indianapolis (home of the reigning Super Bowl) allow organized crome to operate in broad daylight? It’s a disgrace what’s going on and it may do the city good to have it’s dark underbelly exposed.
Hope Abdul reads this. If he can get the inroad to Fox or CNN I think the video can be obtained.
October 27th, 2007 at 11:02 am
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