Former Indiana State Rep Tangled in Casino Corruption Case

A former member of the Indiana House of Representatives was involved in a case alleging federal corruption. Charges against Sean Eberhart, 57, were filed in Indiana. A statement released by the US Attorney’s Office, Southern District of Indiana, reveals that the former House member pleaded guilty to conspiring with others to solicit and receive a promise of lucrative employment with a gaming company.

Allegations against Eberhart claim that he agreed to leverage his position to push forward legislation that would favor a gaming operator. In exchange, court documents allege, he agreed to receive a lucrative position with the gaming company.

Charges against the 57-year-old were announced by the US Attorney for the Southern District of Indiana, Zachary A. Myers, as well as FBI’s Indianapolis Field Office special agent, Herbert J. Stapleton. The announced charges come after an investigation by the FBI. Currently, Brad Shepard, Assistant US Attorney is prosecuting the case.

Eberhart was a representative for Indiana House District 57, including Shelby County, as well as parts of Hancock and Bartholomew counties. He held that role for 16 years until November last year when he stepped down. In his role, Eberhart was a part of the House Committee on Public Policy which oversaw processes related to gaming and casinos in the area.

Offered Lucrative Role Had an Annual Pay of $350K, Allegations Claim

The alleged crime dates back a few years ago to late 2018 and early 2019. According to court documents, at the time, Spectacle Entertainment, a gaming company, showed interest in purchasing licenses for two casinos in Indiana. The two venues were located on Lake Michigan, but the gaming company allegedly intended to relocate those casinos to areas that might be more profitable.

In Indiana, purchases of casino licenses, as well as relocations, must secure approval by the state’s legislators. Usually, such approvals are granted through passing bills. However, such proposals must also receive a green light from the state Governor. A bill that sought the purchasing and relocation of the two casino licenses was introduced to the House in the state and was also considered by the House Committee on Public Policy, the same committee where Eberhart served. Besides purchasing and relocation, the bill required Spectacle to settle a transfer fee payment.

According to court documents, the owner of Spectacle, identified as Individual A, allegedly offered Eberhart a high-profile employment role. The charges claim that the lawmaker accepted the offer for the high-level role that included annual compensation of at least $350,000. In exchange, Eberhart allegedly agreed to leverage his position to help push forward the proposed bill and ensure a favorable result for Spectacle. Moreover, allegations against the former House of Representatives member claim that he agreed to reduce the transfer fee the gaming company had to pay from $100 million to $20 million and support different tax incentives that would benefit the gaming company.