As reported by the Gary Post Tribune: “Gov. Mitch Daniels said a state probe
has begun to uncover evidence that the backers of a private foundation
benefited personally from the $14 million in casino taxes intended for the
residents of East Chicago. “The Attorney General’s Office and the Indiana
Department of Revenue are heading the probe. “If the investigation shows
Second Century violated state law, Daniels said he has called on the state’s
Gaming Commission to ‘void that contract and make a new agreement’ and
possibly force the foundation to return millions it has received since 1995.

“.Daniels made his declaration in East Chicago City Hall, where city
officials have struggled to win back the funds earmarked for the private,
politically connected Second Century foundation since Mayor George Pabey
unseated Robert Pastrick.

“Second Century is run by two Pastrick insiders – attorney Tom Cappas and
Michael Pannos, a former chairman of the state Democratic Party.”