ADDITIONAL INDICTMENTS RETURNED IN GUEA INVESTIGATION

Hammond, IN—The United States Attorney’s Office today announced today the return of a two count indictment against Willie Harris, William Smith and Roosevelt Powell.

Harris, age 54, of Gary, Indiana, is an attorney in Lake County. Smith, age 68, of Gary, is the elected Third District Lake County Councilman representing parts of Gary, Indiana. Powell, age 63, of Gary, owns and operates U.S. Research Consultants, Inc. U.S. Research has an exclusive contract with Lake County to collect delinquent property taxes on behalf of the Lake County Treasurer.

The indictment alleges a scheme from December 2000 through October 9, 2001, involving a piece of real estate located at 6300 Miller Avenue in the Miller section of Gary. The property was formerly the site of Ralph’s Supermarket, but had been vacant for several years.

The owners of this real estate wanted to donate it to a charitable corporation and contacted Smith to see if Smith knew of any qualifying non-profit organizations who could use this property which was valued at approximately $380,000. Smith, in turn, contacted an individual at the Gary Historical Society and told that individual he (Smith) wanted to “borrow” the Society’s tax-exempt status in exchange for $50,000. Willie Harris, attorney for the Historical Society, prepared the necessary deed.

In August 2001, Roosevelt Powell urged the Gary Urban Enterprise Association (GUEA) to purchase this real estate from the Historical Society for $200,000. Substantial back taxes of approximately $60,000, however, were due and owing Lake County on this real estate. In conjunction with this purchase, the indictment alleges Powell and Harris conspired to get these taxes reduced through a lawsuit filed in the Lake Superior Court, which suit contained a number of false representations. Ultimately, the taxes were reduced to $15,000 which were paid by Harris.

GUEA purchased the real estate for $200,000.00. That amount, however, did not go to the Gary Historical Society which received only $50,000.00. The remaining $150,000 was spilt as follows: William Smith received $75,000; Roosevelt Powell received $25,000; and, Willie Harris received $50,000.

The indictment charges these defendants with wire fraud in defrauding the Gary Historical Society. Harris and Powell are also charged with conspiring to defraud Lake County relating to the lawsuit filed to reduce the property taxes.

This indictment is a result of the Operation Restore Public Integrity initiative of the Federal Bureau of Investigation, Indiana State Police, Internal Revenue Service and the United States Attorney’s Office. Also assisting in this indictment was the Department of Housing and Urban Development, and the Indiana Attorney General.

This matter is assigned to and will be prosecuted by Assistant United States Attorneys Gary T. Bell and Bernard L.Van Wormer who can be reached at 219-937-5500.

The specific sentence to be imposed upon conviction in each case will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. The United States Attorney’s Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.

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