Smith, Powell, Harris guilty

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BY JOE CARLSON
jcarlson@nwitimes.com
219.662.5339 | Friday, September 28, 2007 | (31 comment(s))

HAMMOND | A federal jury returned guilty verdicts Thursday night against three political heavyweights -- Lake County Councilman Will Smith Jr., tax collector Roosevelt Powell and Gary attorney Willie Harris.

All three were found guilty of filing false tax returns for failing to report a combined $150,000 in "finder's fees" they got for arranging the $200,000 sale of a vacant grocery store in Gary's Miller neighborhood to the Gary Urban Enterprise Association in 2001.

Smith, 68, who was president of County Council when he was indicted last year, was convicted of one count of filing a false tax return in 2001. He was acquitted of two conspiracy charges.

Harris, 54, and Powell, 63, were convicted of one count each of filing false tax returns, conspiring to defraud the public charity that legally owned the store and conspiring to illegally erase back taxes on the store. They were each acquitted of one conspiracy charge.

Smith faces a maximum of three years in prison and Harris and Powell face up to 28 years when they're sentenced in early January, although the sentences are highly dependent on federal guidelines and U.S. District Judge Philip Simon's judgment.

"The message is don't take advantage of people and don't abuse your power, because that's what this case was about," Assistant U.S. Attorney Gary Bell said. "What it affirms is that the U.S. attorney's office is going to continue to fight corruption."

None of the defendants showed emotion when the verdicts were read about 7:30 p.m. Thursday.

"I think the verdict is fair, based on the evidence," said defense attorney Fred Work, who got Smith acquitted of the charges that could have carried the most prison time.

Harris' wife, Dharathula Hood-Harris, had little to say about the trial, in which she took the witness stand as Harris' bookkeeper.

"He was not guilty," Hood-Harris said.

The jury deliberated for about 16 hours over two days following the seven-day trial. The verdict came about seven hours after the jury of eight women and four men wrote Simon a note Thursday saying they were "hopelessly deadlocked" on eight of the charges.

Though the case featured a blizzard of paperwork -- quit-claim deeds, cash receipts registers and profit-loss statements -- Bell said the prosecution's case rested mainly on the testimony of close friends and family members of the defendants.

One victim who testified was Dharathula Millender, who is Harris' aunt-in-law and the founder of the Gary Historical and Cultural Society, which owned the grocery store at 6300 Miller Ave. and yet lost 75 percent of the profits of the sale to "finder's fees."

Also testifying was Dorothy Ard, a longtime family friend of Harris, who said Harris betrayed her by forging her signature on a GUEA check that made it look as though she took an absurd, twenty-fold profit on the sale of the building at 768-778 Broadway.

Harris and Powell also were convicted of fraudulently reducing property taxes on the grocery store by $58,000, telling a judge the building would have to be razed because of poor condition -- on the same day they received their profits from the sale.

Prosecutors said the three men deliberately failed to report the income on their 2001 tax returns. Defense attorneys noted that the taxes were paid in 2004, after a civil audit of Powell's taxes uncovered the profits.

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To: Close Family Friend wrote on Sep 29, 2007 9:29 PM:

" Yes! What they did was unethical!!And YES it was illegal!!Mrs Millendar is not the one who "forgot"to claim that income on their tax forms!! Filing false tax returns is....a....ILLEGAL!!!!! ALL involved should be investigated.This is such a shame.There are good people in Gary that need help and our "public servants"are using that help as a way to stuff their pockets regardless of those in need....this makes me sick!!! "

crime wrote on Sep 28, 2007 11:18 PM:

" What crimes did Chris Morrow commit? What crimes did Karen Freeman-Wilson commmit? What responsibility did the board have with GUEA? "

No Big Win wrote on Sep 28, 2007 11:03 PM:

" The Government did not have a strong case. The people are just tired of greedy politicians. But, what about D. Millendar is it illegal to "loan" your 5013-C status? Is it legal for R. Powell to buy property in his daughters name? "

Read this! wrote on Sep 28, 2007 7:14 PM:

" The feds need to check out the Juvenile Court and their payments to "employees" and contractors. The public defender's get around $30,000/year (at least) AND FULL BENEFITS (Insurance, paid vacation, holidays, etc.) even though they work 2-3 days per week at most! Generally they work one morning a week and that's it! The Judge also hired the former (fired) DFC director James Hmorovic as a "consultant". Can anyone prove what he has done to actually earn this money? I bet not!!! "

Read this!!! wrote on Sep 28, 2007 7:09 PM:

" Many politicians in Lake County collect more than one full time salary while working minimal hours at each job. Gary City Judge Deidre Monroe collects her full-time judge's salary, but rarely sits, also collects a full time Public Defender's salary in Juvenile Court working one or two days a week (if that)and also gets extra pay for representing parents at the appellate level, and also gets paid by Mike Brown's office (who she also gave a cushy contract to). It certainly pays to be a politician in Lake County!!! "

To Friend wrote on Sep 28, 2007 6:16 PM:

" Bernie and his bunch should be looked at very closely for turning a blind eye. If they could link him and his office to this mess the dems house of cards will come crashing down. Lets not forget that Cantrell is still in the cross hairs here as well "

Ethics 101 wrote on Sep 28, 2007 6:14 PM:

" Let's see Otho, Martha Stewart, Wesley etc. Prison is not the solution. These guys need a dose of ethics, an ankle braclet and about 400 hrs of community service in uniforms. That's all, a little down time to redeem themselves. Behind prison walls is not the solution. "

Men w/b men & boys w/b boys wrote on Sep 28, 2007 5:54 PM:

" CA and AW must now step up to the 'be a provider' plate. Papa wouldn't be there for a short time to bail you out. 'Bail' my bad, wrong term. "

To: Rack 'em wrote on Sep 28, 2007 5:43 PM:

" Okay now, I know for a fact that daughters, sons, son-in-laws, and grandchildren will continue to live a better life thanks to what pops and papa did. How deep is your love? Let's keep money on daddy's books. Comfort these men and let them know their works will not be forgotten. "

People, people cjh wrote on Sep 28, 2007 5:30 PM:

" These 3 gentlemen are someones child, husband, uncle and grandpa. Let's be human. They made a mistake messing with the wrong people, and got caught. Let's show some empathy because you never know everything your loved ones are involved in until it makes headlines. "

Wake up Call wrote on Sep 28, 2007 4:20 PM:

" The feds are aware of corruption in government all over. You may not think they're watching BUT THEY ARE!!!! They just wait until you think your safe and clear, but that is when they pounce! "

To: Good wrote on Sep 28, 2007 3:57 PM:

" Good! wrote on Sep 28, 2007 8:44 AM: " Coruption finally caught. Lock them up and throw away the key. Worthless politians. " I Would also add, "WORTHLESS HUMAN BEINGS" "

WOW. Corruption in Gary??? wrote on Sep 28, 2007 3:55 PM:

" I would bet everything I own that if will Smith, Jr. could run for office again the people in Gary would elect him "

To: Close Family Friend wrote on Sep 28, 2007 3:32 PM:

" Is this why Bernard Carter does not prosecute any local politicians, because they are close family friends? You can't fool (trick) Mother Dolly. "

Hey Kim wrote on Sep 28, 2007 3:29 PM:

" Don't forget, Mike Brown works for Judge Monroe in the Gary City Court also. Three (3) jobs. "

Hey friend wrote on Sep 28, 2007 2:58 PM:

" Tax evasion is a felony, not an ethics problem. Go directly to Jail, do not pass go. "

Kim wrote on Sep 28, 2007 1:47 PM:

" Will Rudy Clay be the next politician to be indicted? "

Kim wrote on Sep 28, 2007 1:46 PM:

" How long will it take for the Feds to indict others, especially those who are dual payrolling, such as Lake County Recorder Mike Brown. How can he operate the Recorders office during the day and at the same time work for the City of Gary? "

Meet Bubba wrote on Sep 28, 2007 1:23 PM:

" Mr. Harris, Mr. Smith and Mr. Powell meet Bubba your new best friend here in the Federal slammer. Do you think they will start singing for a sentence reduction? "

Close Family Friend wrote on Sep 28, 2007 12:57 PM:

" Was what they did unethical? Yes Was it illegal? No Mrs Millendar knows she signed the deed. She just got the bad end of a business deal. She lent her not for profit status out for $50,000. I say they should investigate the GHCS and see if she has lent her not for profit status out to others. "

Say No to Dan Repay wrote on Sep 28, 2007 10:37 AM:

" Don't get any ideas Danny, we want someone honest on the counsel, not the rubber stamp for the City of Hammond. "

Look out Mr. McDermott wrote on Sep 28, 2007 10:35 AM:

" I wonder if you or your "partners in crime" in Hammond City Hall need to be nervous. Awfully strange that to close the Cabelas deal, you had to threaten to use eminent domain if the County Club would not go along with your plan and isn't there a slight conflict of interest with your father getting a reward for "finding" the site for the store. Looks real bad that daddy gets paid and the son helps to ensure the deal goes down. I think Hammond City Hall should be investigated next. Note: If you find you do need an attorney, don't use Joey Alegretti, you are going to need someone competent to save your behind. Jeffrey L. Crook "

Amen, brother! wrote on Sep 28, 2007 10:34 AM:

" A big Atta-boy to those involved in the investigation. And, just because Meeks is singing like a canary, don't let her off! "

Let the games begin wrote on Sep 28, 2007 10:31 AM:

" Now we have to elect a new County coucilman. Go Alex Wheeler. "

nwi wrote on Sep 28, 2007 10:22 AM:

" Here is a real shocker! LOLOLOLOLOL Will there be any Dems left standing when they start singing for a slap on the wrist. Now things will get real interesting. "

Good! wrote on Sep 28, 2007 8:44 AM:

" Coruption finally caught. Lock them up and throw away the key. Worthless politians. "

Smash mouth prosecution wrote on Sep 28, 2007 8:33 AM:

" Rack up another one for Feds. They do play hardball. Who's next? Holinga-Katona?? "

Too many hands in the cookie jar wrote on Sep 28, 2007 8:06 AM:

" I really hope each of these criminals is sentenced to the maximum allowed. Its time that those who are entrusted to work for the citizens are taught if you brake the public trust they will pay for it. Perhaps that will curb some of these types of crime. They need to be forced to pay back what they have stolen also. Hit them in the pocket, that will hurt the most. Nice to see the U.S. Attorney's office is watching these dirt bags. Good job! - Jeffrey L. Crook "

I spy wrote on Sep 28, 2007 8:00 AM:

" Great start, now lets keeping cleaning house and put more elected officials through the courts. Violation of the public trust hurts everyone. If we can take the politicians who profit out of public office, and then the power brokers, Lake County will have a chance of attracting new business and shaking its reputation as the unwanted stepchild of Chicago. Plenty of corruption still exists. How do we point the US Attorney's Office where to look?? "

3 Stooges wrote on Sep 28, 2007 7:34 AM:

" Got less than what they deserved. "

Oldest Spears wrote on Sep 28, 2007 6:00 AM:

" GOOD! GREAT! I just hope the IRS makes them pay back their illegal profit. "

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