Abdul Hakim-Shabazz is reporting today that federal law enforcement is investigating potential ties between Indianapolis' pea shake houses and organized crime. "Sources say the Government has identified nearly a dozen pea shake houses with net profits of more than $29 million, after payouts," he writes. "And that is a conservative estimate," he adds. "There is also reason for the federal government to believe that in addition to those profits, millions more have been funneled into financing drugs, prostitution and loan sharking." "Money may have also been funneled into financing legitimate businesses in Indianapolis."
The investigation, which the Justice Department would neither confirm nor deny to Abdul, has been going on for several years according to Abdul's sources. According to Abdul, "Sources say this investigation has been taking place for the past three years and has managed to gather extensive information from video surveillance, wire taps, e-mail, cell phone conversations and bank records." "It is not clear if the investigation includes any elected or appointed officials in Marion County," he said. "What is clear is that things in this county could get real interesting, real soon," he concluded.
Rumors have been circulating of an ongoing federal investigation of local politicians, although I've been told that at least one rumored investigation had nothing to do with the pea shake houses. Assuming a federal investigation exists, why is someone leaking information about it before any formal announcements are made, and why are they leaking it to Abdul? It always bothers me when information drips out in this manner. Don't get me wrong. I'm pleased to hear somebody may actually be looking out for the public interest. However, someone could actually be using Abdul and others to tip off those being investigated to disrupt the investigation itself. Or someone could have a political motivation, such as influencing the outcome of Indianapolis' municipal election this year. Candidates are after all now pondering whether to run for mayor or a city-county council race. Is this leak intended to influence a prominent Republican to enter the race for mayor?
It should be noted that Abdul has a professional relationship with the law firm which employs newly-elected Marion Co. GOP Chairman Tom John. If and when any official announcement is made, I'm sure the Democrats will be screaming partisan motivations on the part of the Bush Justice Department to bring down local Democrats. Using Abdul to get the word out will only feed those claims. Kudos to Abdul for breaking this story. For whoever leaked the information, though, I think I would have chosen a more independent source starting with the state's newspaper of record, the Indianapolis Star. Or perhaps they did and nobody at the Star was taking the bait.
43 comments:
I had to delete the original post and clean up my language just a bit. First, Gary, thanks for the mention. I appreciate it. Second, it's no big secret of my relationship with John, Lewis and Wilkins. I've been there since June of 2006. Anyone who's ever checked the website or seen one of my legal business cards knows that. I've never hid the info or denied it when it came up.
I have close friends on both sides of the aisle. As a matter of fact three of my closest friends in this town are a D, R and an L and all heavily involved in their parties. And our relationship is simple, friendship is friendship but business is business.
And for the record, I also teach at Ivy Tech and have joined the faculty at the University of Indianapolis School of Business.
As far as this being something that was pitched by the GOP, sorry they're not that smart. I found out about this the old-fashioned way, I worked my nuts off and got lucky.
People will make their own decisions about the value of what I put out and whether they want to believe it. I am well aware of the fact that people will go after me because of my relationships with other folks in this town. I expect that and am cool with it. But if that's their only weapon in their arsenal, I feel for them because they can only attack the messenger when they know the information is correct.
Thanks again for the plug on Advance Indiana.
How long will it take Republican County Prosecutor Carl Brizzi to slap on some makeup and lunge for the TV cameras to make an impassioned statement about how his office has been on the case for years? You'd think something like this could have been handled locally. Why has Brizzi been snoozing?
If I were one of the usual anonymous nobodies here, I'd be screaming about corruption, payoffs and incompetence by the Prosecutor...
I appreciate your comments, Abdul. I should be clear that I'm not faulting your work in the least bit. This is a great catch on your part. But whenever someone decides to leak information about a story this big, there is a reason for it. I obviously don't know who your source, but there's something that can be read between the lines. I think it's fair to speculate on that.
Gary,
No offense taken. No one has ever given me anything without a motivation and I always take that into account. Thanks again for the mention.
Wilson, changing the subejct isn't going to change the facts.
I'm not sure you'll ever understand that.
Pea-shakes are illegal. They exist in former homes that are not suited, licensed or zoned for this kind of activity. Neighbors are scared to death to say anything.
That kind of money does shock me. No wonder they're defending it so jealously.
AI, you're going way too soft on Abdul. Let's take a look at his relationship with Lewis & Wilkins. It's biggest client is the Indiana Attorney General's office ($1 million plus contract) where the two principal partners formally worked. It's second biggest client is the Indiana Secretary of State ($100K plus). Tom John formerly served as Rokita's campaign manager and was the GOP appointee on the State Election Board. Abdul claims to be an objective journalist. Let's see, he works every morning at WXNT. He teaches class in the afternoon at Ivy Tech. And he teaches class at night at the University of Indianapolis. What exactly does he do to earn a paycheck from Lewis & Wilkins? Who helped him get on Ivy Tech's payroll ala Pat Bauer, Craig Fry, Bill Crawford and Bob Garton? Anyone who listens to his morning program will begin connecting the dots to the topics and guests he spends so much time covering on his morning radio program. The conflicts of interest are too numerous to count. There, Abdul is stripped naked as he should be.
Abdul for mayor!
Thanks again for talking about me, but Anon 3:43 you may want to check a couple of your facts. First, my association with Lewis & Wilkins is an of counsel capacity, you may want to go look that up and see what it means.
Second, I was hired at Ivy Tech about the same time I was hired at WXNT. They looked at my previous teaching record and thought I'd be a good addition to the faculty. I'm actually a pretty good teacher and my students love me. You should see my evaluations. You can also see my schedule on the Internet. I didn't know Bill, Bob or Pat when I got here.
And I'll be the first to tell you I'm not an objective journalist. I have an opinion and that's what I give. It's more informed than 99% of the people who live in this state, but it's still an opinion.
So anon 343, you're great at stating the obvious. Congratulations.
Abdul, help me out here. Why does your "of counsel" status remove the conflict of interest? Does Lewis & Wilkins sign your paycheck. That's all I want to know.
I hate to rush to the defense of a radio host, but:
Abdul is the first, underline FIRST, journalist/columnist in this town to spend more than a fleeting moment on serious subjects, in ten years. Or more.
I am a little concerned about some of his morning lineup of guests, from time to time. Abdul, enough with the Libertarian folks and Ike Randolph already. And enough with the gratuitous "say hello to your lovely wife" lines. Ugh.
But as far as good reporting and hard work go, he cannot be beat. By a long shot.
If you want hack, hate-filled, racist chatter, run over to Amos Brown's show or Greg Garrison's show. They hardly ever leave their studios to get news sources.
Abdul works hard at it. He's wrong sometimes, but he tries. Which is more than I can say for the rest of the media in this lame journalism town.
How else do you explain Tully even HAVING a job? This sorry ass reporter and columnist sat beside Julia Carson last fall, in a televised interview, and watched her wander off into never-never land. And he mentioned it not once in his regular column.
He knew about Eric Dickerson's business failure, and reported on it sketchily, and let the lame excuses from ED suffice instead of digging.
He took, and admitted in print, multiple vacations at critical times during campaigns last year.
That from the state's newspaper of record...their esteemed political columnist.
Amos, Matt, Shella, the whole lot don't hold a candle to Abdul's efforts. Not even close.
anon 6:39, you make some very valid points about Abdul. He is forcing others in the local media to step up their game a little. He often appears to be running circles around them without much effort.
judging by julia's latest comments, she got her insanity defense down pat just in time.
He knew about Eric Dickerson's business failure, and reported on it sketchily, and let the lame excuses from ED suffice instead of digging.
PISS OFF!!
Show me where you find a "business failure"?? He sold the rights to Buick store VOLUNTARILY to Ed Martin.
If anything GM should be the business failure. They have cut the Buick line down to nearly nothing.
You moonbats won't be happy until there is Soviet-style rule in the United States.
"He knew about Eric Dickerson's business failure, and reported on it sketchily, and let the lame excuses from ED suffice instead of digging."
Those who never TRY shouldn't throw stone at those who do.
Dickerson sold his interest.
Payton Wells stuck it to the bank after cheating Marion County, with the consent of elected Democrats.
Both African American men, both GM New Car Dealers, one honest the other a crook. Guess which one was the Democrat.
I hope Eric Dickerson is back in 08’.
Indianapolis needs an aggressive federal prosecutor. Patrick Fitzgerald has really been cleaning up Chicago and Indy could use someone like him, minus some of the despicable, hardball tactics he employs.
Piss off? Geeesh, at the risk of dragging up the whole ED-JC thing again, for those of you who don't know about such business deals:
I've dealt with 5th 3rd bank's commercial loan department on multiple deals. They're not a very good bank. But I can assure you they would not have filed suit to foreclose on Eric Dickerson's dealership unless they feared they wouldn't get repaid--for whatever reason.
Banks would rather jump off a cliff than file suit. They detest paying lawyers. (No offense, AI...just fact)
I'd probably vote for Eric anyway if I lived in the district. I don't.
But make no mistake about it--if he did as you've said, and sold his interest, he badly mishandled his banking relationship, at best.
The banking thing was, and is, curious. The state's largest paper should've looked into it more deeply. That would've required some elbow grease.
The Star did nothing. They reported the simple fact, printed each side's statements, and walked away from responsibility. A drive-by reporting job. Lazy. Pedestrian. Abdul tried, multiple time,s to get the answer, when no other media did.
I know multiple businesspersons who despise Julia Carson, but wouldn't vote for ED after this episode. It was either bad business practices or he poorly explained his role, or both.
Move a few blocks north, ED, and challenge Danny Boy. Then, I'll vote for you, GM and 5/3 Bank be damned.
But try to come up with a better answer. Abdul pried and got nowhere...there is an answer out there, and it probably isn't pretty.
I've dealt with 5th 3rd bank's commercial loan department on multiple deals. They're not a very good bank. But I can assure you they would not have filed suit to foreclose on Eric Dickerson's dealership unless they feared they wouldn't get repaid--for whatever reason.
Were these deals concerning car dealers? The lawsuit thing is standard fare with 5/3 and other banks when dealing with auto dealers. Too many auto dealers have sold out and fled with the "floor money". That's why 5/3 filed the "pre-emptive" lawsuit. Same for Regions suing Payton Wells - though that seems to be sudden and no apparent plan to hand off control of the franchises.
Banks would rather jump off a cliff than file suit. They detest paying lawyers.
Don't kid me. Banks have lawyers either on staff or have law firms on retainer.
A car dealer in Ohio did sell his dealership and fled with the money out of town. Reason why the banks file a lawsuit when they know of a pending sale. Fifth/Third was burned before. The owner left the country with the money. The lien protects their investment when the deal is closed they can get paid.
The public is not aware of the number of prominent business owners who borrow money and rip off banks to get out of paying back bank loans. Those owners can afford to skip out of the legal boundaries to avoid lawsuits. It occurs more than you realize.
Who's paying the Democrat Party's Chair Mike O'Connor's salary these days. The former chief deputy mayor. How many sweetheart deals did he put together for himself before he left the city administration. He is not an attorney. Left Mayor Peterson's office and started a consulting company. What expertise does he have? Who are his clients? Open the files!
Ed Treacy was the former Monroe County Chairman. I wander if he is related to the Ford Dealership owner in Bloomington who got the contract for the new fleet of patrol cars for the city. With all of the Ford dealerships in Marion County, why would the Peterson administration buy cars in Bloomington. Maybe Wilson46201 has the answer to this inquiry.
OK, here's a business fact of two you're apparently overlooking:
In addition to the "banks have attorneys on staff" thing...no, most don't any more. They hire it all out. Retainers? Maybe, but it's still expensive to perfect a lien.
And that's how it's done: you can serve constructive notice, and file a lien, without filing a lawsuit. Hell anyone can file a lien. And fleeing boundaires, or whatever the last poster was saying, is just silly. Liens and lawsuits follow you anywhere in the country.
"Floor money" is secured only by the vehicles themselves. The real estate and other assets were likely pledged to 5/3.
My experience mentioned before with 5/3's commercial department, was with all kinds of businesses and their real estate holdings. 5/3 is not a great bank, and they're slow to react under good circumstances.
If ED were to flee, filing the lawsuit gets them no closer to collection than filing a lien.
Think before you type. Do you think that a megacorporation in big trouble (GM), which is having probably its only success with the African-American community, would willingly and quickly dump a minority dealer? They are actively recruiting minority dealers. Dump a "successful" one? Makes no sense.
Something smells on the whole deal, but we'll probably never know, because most of the media took a nap. Abdul tried to get answers, and failed.
You'd do well to not have Hail or the last poster help with any business loans in the future.
Back to assets of ED: he didnt own any real estate at his old dealership - GM bought it from Ogle-Tucker - its held by the Argonaut Corporation which is GMs real estate arm. The invoices were sent to Keystone Buick but ED preferred to plaster his name on the place instead. How amicably did ED sever the lease with GM? dunno...
Let us not forget Julia Carson's clothing store. Let's look at her business, it says a lot about her!
Do we want to talk about the real issue? Illegal pea-shakes and who is benefitting financially from them? Seems like a lot of money to go around for some "leaders" with less than solid credibility in the last year or so.....
Follow the Money!!!
Hey John M,
You're entitled to your opinion but you may want to get your facts straight. You won't find me on the Indiana Roll of Attorneys because I am not an Indiana lawyer. I'm an Illinois attorney which is why I'm on their lawyer rolls. And it's nice to know that you know know I've never practiced law in my life seeing how you don't know me. but thanks for offering up the opinion that you are defintely entitled to.
Ed Treacy was the former Monroe County Chairman. I wander if he is related to the Ford Dealership owner in Bloomington who got the contract for the new fleet of patrol cars for the city. With all of the Ford dealerships in Marion County, why would the Peterson administration buy cars in Bloomington.
Damn good question. As I understood things Frank Anderson was buying cars from Payton Wells, instead of on the State QPA as in previous administrations. Now that Payton Wells is apparently defunct (but he's still catering to the jailbirds!) they are going to B-town for their wheels?
Interesting!
"How amicably did ED sever the lease with GM? dunno..."
I “dunno” either. I do know that ED was still doing repair business at the location six months after he sold the franchise to Martin. GM didn't seen to mind, probable negotiation in the sale? I think so. Wilson quit looking for dirt where none exists. Clean up your own backyard.
"Back to assets of" Payton Wells. Was he on the campaign staffs of Indianapolis
DEMOCRAT candidates? Maybe...Frank Anderson? Julia Carson? Bart Peterson? Monroe Gray? I wonder humm.
He was in fact on Anderson's campaign staff. Treasure I believe and a supporter of the others.
I wonder if he stiffed anyone other than his floor plan company (Bank). I wonder if a bank or GM is going to get stiffed with his real-estate loans or leases?
We know that Marion County got the shaft at $900.00 plus for each car purchased at his dealership.
What say Wilson, how about digging a little dirt around Wells, or is that getting too close to Carson?
Be careful Mae will tell you to, "Stop it Wilson, that's enough".
Can't upset Momma Carson by digging to close to the truth can we?
He [Payton Wells] was in fact on Anderson's campaign staff.
And received the contract for providing meals to Marion County Jail inmates.
Got word that a video production company is working on a documentary on the illegal gambling problem here in Indy. They should get in done in time for the NFL's Superbowl committee don't you think? Maybe then the Mayor would do something about these places sooner than later.
I sincerely hope you are listening to Sen. Lanane's speech right now. It's excellent.
Regarding Abdul, can we all say "MOUTHPIECE"?
Gary-- the Senate just voted 39-10 to enshrine discrimination in the Indiana State Constitution...
All Hail the Terrific Ten who stood on the correct side of the law, and our lives.
I could probably guess, but anyone care to print their names?
I'm thinking Simpson, Lanane, Breaux, Smith, Howard, add on here...
I am a lawyer and "of counsel" with a law firm as well. I have no common clients with the firm nor do I receive a nickel from the firm.
My association is a convenience arrangement. Yes, I am a member of the Indiana Bar, but that is not required for an association with a firm.
Regarding Abdul, he is blessed to have what most lawyers don't have these days: Character, courage and immaculate communication skills. He is the hardest working reporter around and, unlike some other political reporters, he is approachable and liked by thousands around the state of Indiana, in Illinois and around the country.
As an African-American lawyer, I'm proud to have him in our state; very few black lawyers are in a POSITION to speak up about ANYTHING in this state--look at the noticeably lack of black lawyers in the state legislature and the presence of high school drop-outs.
As a lawyer, it's a lot easier to speak up when you are "of-counsel" or totally independent. Over the last couple of years I started speaking up after I saw the corruption in Marion County black politics. I began educating African-Americans about the importance of a two-party system and that they too have a RIGHT to participate and run for office in Marion County, not just the ghetto mafia.
Everytime I spoke up the partners at the firm received calls from the ghetto mafia requesting they "take care or me".
Fortunately, since I have my own clients and I'm not on anyone's payroll, they could not "take care of me".
Lawyers who speak up against members of the ghetto mafia, particularly if you are black, who are on law firm payrolls are often used as pawns to threaten to cancel the firms legal contracts "the City of Indianapolis, the Airport, etc.", unless the lawyer 'SHUTS UP' or the firm fires the lawyer.
So, my advice to Abdul, keep doing what you are doing. I'm proud of you and you are a role model for other African-American lawyers around the state of Indiana. Define yourself and don't allow others to manuever you into silence like they have so many other "conscious" African-American lawyers.
Abdul, always remember, you have a following that will follow you through hell or high-water, and those who know me know that "I don't lead fools, nor do I follow fools".
p.s. Nor do I respond to fools.
Getting back on topic...
which bank is getting the $29 million dollars per year (minimum) from the peashake houses? It's goota go through somewhere either as a laundering tool or after it's been laundered.
I posted over on indiana barrister with similar questions. There's a history in this country of banks using laundered money to increase their loan potential - the profits can easily exceed 1000% and the issue demands a serious investigation.
I'd be interested in knowing whether KeyBank, located in the Julia Carson Government Center has any of the peashake owners immediate relatives as clients? I hear they have their accounts in their wives names.
If I were a peashake owner, I'd promote city council and state reps who were friendly to my "business". Maybe some hard cash, maybe some "help" for family members, and maybe a little bit of extortion once they've accepted my contributions. If the cops show up, YOU better show up. (Why else would a state senator take that kind of risk?)
And, if I were a peashake owner, I'd make some arrangement with my favorite banker under the same circumstances. A little bit of cash. aome nice favors, etc. I'd offer them a set of books from a "legitimate" front business to justify large deposits, and I'd gauruntee a very large minimum account balance in hard currency that can be used to maximize the banks loan potential - substantially increasing their profits.
That's what I would do - in addition to having my new "friends" in government promote my other friends on the police force.
$29 million a year can go a long way when you line the right pockets. Does anyone know what RICO stands for?
YOU HAVE TO ALL BE IDIOTS TO BELIEVE PEA-SHAKE HOUSES MAKE OVER $29 MILLION OR ANYTHING CLOSE TO THAT. PEOPLE CAN COME UP WITH SOME WILD IMAGINARY NUMBERS ABOUT SOMETHING THEY KNOW NOTHING ABOUT. MOST HOUSES MAKE ENOUGH TO PAY OFF WINNERS AND PAY EMPLOYEES. IF THEY ARE SO BAD WHY HAS MOST LOTTERY GAMES BEEN FASHIONED AFTER THEM? WHY HAVE THEY BEEN AROUND SO LONG? THE ONLY REASON THEY ARE ILLEGAL IS BECAUSE THE "MAN" (WHO EVER HE/THEY ARE) WANT'S CONTROL OF EVERYTHING. HOW IS THEIR (LOTTERY,CASINO,& BINGO) GAMBLING LEGAL (VERY FEW WINNERS)AND PEA-SHAKE HOUSES ILLEGAL (SOME OF THE SAME GAMES). PEA-SHAKE HAS BEEN AROUND BEFORE LOTTERY WAS EVEN THOUGHT ABOUT. (HAS MANY WINNERS). ONLY BECAUSE THE MAN SAYS THEY ARE ILLEGAL.
THEY ARE A STAPLE OF THE COMMUNITY! RESIDENTS ARE NOT AFRAID, THEY ARE GLAD THEY ARE HERE. SOMETIMES THE PEA-SHAKE HOUSE IS THE ONLY THING SOMEONE MAY HAVE TO BUY THEIR MEDICINE, PAY THEIR UTILITY BILL, BUY GROCERIES, EVEN PAY THEIR WAY THRU COLLEGE. AND NOT PUT A WEAPON IN THEIR HAND AND TAKE FROM SOMEONE ELSE JUST TO SURVIVE (A REAL CRIME).
TO PLAY THE LOTTERY YOU MUST HAVE A DOLLAR. TO PLAY AT THE PEA-SHAKE YOU CAN HAVE $.05.
Pea-shake houses support youth sports program's, college tours, pay utility bill's, car payments, buy groceries to those ho really need it. Where is the lottery and casino money going? Our school's were in better financial shape before all the "government organized gambling" where the odd's are just "studpid" at least at pea-shake many more people are winners. Not 1 and 10 million. So who is the real criminal?
TELL THE WHOLE TRUE STORY. IF YOU ARE GOING TO TELL IT. DON'T TRY AND MAKE IT ALL NEGATIVE. IF YOU WANT TO SEE A REAL INCREASE IN CRIME STAY ON YOUR COURSE.
GUESS WHAT? MOST OF THE MONEY THAT COMES IN FROM THE PEOPLE AT PEA-SHAKE HOUSES. GOES BACK OUT TO THE PEOPLE.
THEY DON'T NEED STATE TROOPERS TO OVERSEE SECURITY, THEY DON'T HAVE 20 LAYERS OF ADMINISTRATION TO SOAK UP PROFITS AND PAYOUTS THAT COULD GO TO THE PEOPLE WHO ARE PLAYING. AND THE ODDS ARE NOT 1 AND 10 MILLION OR 1 AND 10,000. AGAIN WHO ARE THE REAL CRIMINALS. CHECK YOUR FACTS.
SIGNED
NOT THE MAN
1:29 ALL CAPS,
The "man" is the one raking in the real profits on peashakes.
Sorry to burst your bubble.
And BTW, even if the odds are 1:2 (which I sincerely doubt!), grandma ain't winning in the long run. Stop foolin' yourself. That money's going into Uncle Tom's pockets, before it get's laundered and moved OUT of the community.
Nobody likes taxes or the "man", but dislike of government oversight is no excuse to disregard the NECESSARY corruption that's required to keep the peshakes operating. Stop promoting
10:29 No bubble busted here Iam talking strictly FACTS. Not justsomething I heard. Just the Facts.
ALL CAPS BABY
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