Indiana Lawmaker to Plead Guilty in Casino Fraud Scandal

Article by : Erik Gibbs Nov 13, 2023

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Former Indiana legislator Sean Eberhart, age 57, has agreed to plead guilty to a federal charge of conspiring to commit honest services fraud. Prosecutors assert that Eberhart accepted promises of lucrative employment from a gaming company during his tenure in public office.

In the event of a conviction, he could face a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine.

Eberhart, a former Republican state representative with 16 years of service in central Indiana’s House District 57, stands accused of accepting compensation and future employment in exchange for favorable actions in the General Assembly.

The case revolves around Spectacle Entertainment’s 2018 attempt to purchase and relocate two Indiana casinos, requiring legislative and gubernatorial approval.

As of Friday, Spectacle’s listed phone numbers were disconnected. Eberhart’s plea hearing had not been scheduled as of Friday afternoon.

In 2019, a bill related to casino relocation was introduced and considered by the Indiana House Committee on Public Policy, which oversaw casinos and gaming.

Committee member Sean Eberhart purportedly leveraged his position to support and vote for the bill’s approval in favor of Spectacle Entertainment.

The bill included a proposed “transfer fee,” and Eberhart is accused of influencing terms favorable to Spectacle, such as reducing the transfer fee from $100 million to $20 million and enacting tax incentives.

In exchange, it’s alleged that Eberhart accepted a promise of future employment at Spectacle with an annual compensation of at least $350,000.

Evidence includes Eberhart’s text messages discussing efforts to secure legislation for Spectacle, with statements like “make it right for” the company’s founder (referred to as “Individual A” in court documents).

The US Attorney’s Office has not provided clarity on whether Individual A is also under investigation or will face charges.

Additional evidence encompasses call records, digital images of documents, covert recordings of conversations involving Eberhart, as well as audio and video recordings of statements and actions within the Indiana legislature.

Republican Speaker of the House Todd Huston expressed significant disappointment and frustration, underscoring that such behavior contradicts the core values of the assembly.

Spectacle had been subject to federal investigations before, leading to the sentencing of casino executive John Keeler and former state senator Brent Waltz in 2022. They were convicted for the illegal funneling of gambling funds into Waltz’s 2016 congressional campaign.

John Keeler, a former Republican legislator with 16 years of service in the 1980s and 1990s, received a two-month federal prison sentence and a $55,000 fine.

Spectacle Entertainment, formed by a group led by Keeler and another casino executive, faced consequences from the Indiana Gaming Commission, losing ownership of two casino projects following the indictments of Keeler and another individual in 2020.

Brent Waltz, a Republican hailing from Greenwood, received a 10-month federal prison sentence. He faced charges related to orchestrating approximately $40,000 in illicit contributions to his campaign and providing false statements to the FBI.