Indiana Investigates how Non-Profits Spend Casino Money

April 12, 2006

"The state of Indiana continues to investigate how non-profit groups in East Chicago spend money they receive from a local casino. In question is $14 million dollars a foundation called Second Century has received from the Resorts East Chicago casino over the last nine years.

The state and the city of East Chicago are demanding the group open its books. The foundation has refused, saying it's a private entity.

Mayor George Pabey supports the state investigation and says he also hopes to revamp the way the foundation operates.

""We'll have the foundation and we'll have scholarships and we'll help the different programs in the city. We have no problem with that. But, we've always believed the foundations were run the wrong way,"" he says.

Indiana Governor Mitch Daniels visited East Chicago yesterday. He says some of the contracts Second Century entered into did not help the public and went to private companies. He says the state's gaming commission could order that funds be cut off to Second Century.

There are 2 other groups in East Chicago that are also being investigated.

Foundations executive director Russ Taylor says they are cooperating with state officials and has nothing to hide."