The charge alleges that Eberhart accepted promises of profitable employment from a gaming company during his tenure in public office. The maximum penalty for this offense includes a five-year prison term, three years of supervised release post-imprisonment, and a fine of $250,000.
As of Friday, Eberhart's attorney has refrained from commenting on the matter, and a plea hearing for Eberhart has yet to be scheduled.
Eberhart, a former Republican state representative, served Indiana's House District 57 for 16 years before stepping down in November 2022. Prosecutors accuse him of accepting compensation and promises of future employment in return for favorable action in the General Assembly.
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In late 2018, Spectacle Entertainment, a gaming company, sought to acquire two casinos and their associated state licenses situated on Lake Michigan in Gary, Indiana. The company planned to relocate these casinos to downtown Gary and western Indiana's Vigo County. Such purchases and relocations require legislative and gubernatorial approval. As of Friday, multiple contact numbers listed for Spectacle were found to be disconnected.
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In 2019, a bill proposing the relocation was introduced and reviewed by the House Committee on Public Policy, which oversees casinos and gaming in Indiana. The bill included a proposed "transfer fee." Eberhart was a member of this committee. Authorities allege that Eberhart leveraged his position to advocate and vote for the bill's successful passage on terms beneficial to Spectacle. These terms included approval for the relocation, a reduction in the transfer fee from $100 million to $20 million, and the implementation of tax incentives favoring Spectacle.
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In return, Eberhart allegedly accepted the promise of future employment at Spectacle, with an annual compensation of at least $350,000. Eberhart reportedly sent text messages about his efforts to secure legislation favorable to the company, assuring the founder of Spectacle, referred to as "Individual A" in court documents, that he would "make it right for" them. The U.S. Attorney's Office has yet to respond to inquiries about whether Individual A is also under investigation or facing charges.
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Evidence collected by investigators includes call records, digital document images, covert recordings of conversations with Eberhart, and audio and video recordings and other records of statements and actions in the Indiana legislature.
In response to the news of Eberhart's alleged actions, Republican Speaker of the House Todd Huston expressed profound disappointment and frustration. He stated that such conduct contradicts the assembly's core values and its commitment to being a trusted, credible, and transparent institution accountable only to Hoosiers.
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Spectacle has previously been embroiled in federal investigations. In 2022, longtime casino executive John Keeler and former Indiana state senator Brent Waltz were sentenced for their involvement in the illegal channeling of gambling money into Waltz's unsuccessful 2016 congressional campaign.
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Keeler, a Republican legislator for 16 years in the 1980s and 1990s, received a two-month federal prison sentence and a $55,000 fine. Following Keeler and Waltz's indictments in 2020, the Indiana Gaming Commission forced Spectacle, formed by a group led by Keeler and another veteran casino executive, to relinquish ownership of two casino projects.
Waltz, a Republican from Greenwood, received a 10-month federal prison sentence for aiding in the routing of approximately $40,000 in illegal contributions to his campaign and for making false statements to the FBI.
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