A top aide to former East Chicago Mayor Robert Pastrick admitted to knowing in 1999 that city contracts for concrete and landscaping work were illegal, according to court papers released Tuesday.
Dr. Timothy Raykovich agreed to pay $160,000 to settle out of the lawsuit that seeks to hold Pastrick and former aide James Fife III civilly liable for $24 million spent on a sidewalks-for-votes scheme before the 1999 Democratic primary. Raykovich's settlement became public just before Pastrick's defense attorney, Mike Bosch, told U.S. Senior Judge James Moody last week that Pastrick and Fife would not appear in court Tuesday, leaving themselves open to default judgments.
In his affidavit, Raykovich admitted he had "virtually daily communication" with Pastrick while Raykovich worked as a consultant at City Hall. Raykovich states he "became aware" in 1999 that the city had given vendors contracts that were illegal, because no bids were taken for the projects. Raykovich states in the affidavit that the work was "unregulated and unaudited," and the costs were "excessive."
"As a result of this massive program, the city came into great financial distress," Raykovich states in the affidavit.
Raykovich admits in the affidavit that he knew the "primary motivation" for the concrete work was to ensure Pastrick's re-election in 1999.
Raykovich also said the city gave extra money to politically connected contractors involved in the scheme, according to the affidavit. Raykovich states in the affidavit that most contractors were paid $5.08 per square foot of concrete, but politically connected contractors drew "additional payments" above that rate. Raykovich admits in the affidavit he "wrongfully permitted these excessive payments to be made because of their association with the aforesaid political organization."
Indiana Attorney General Greg Zoeller portrayed Raykovich's cooperation as the key factor in Pastrick's decision not to defend himself against the state's civil lawsuit over the sidewalks-for-votes scheme.
"Their default on the eve of trial was not coincidental; it comes only after their co-defendant, Dr. Raykovich, reached a settlement with the state of Indiana and provided this affidavit," Zoeller said in a statement.
Raykovich's attorney, David Weigle, said Zoeller's statement Tuesday on Raykovich's affidavit was full of "falsehoods." Weigle noted Raykovich did not say in the affidavit that Pastrick or Fife knew of any illegal acts. Raykovich settled to avoid paying about $80,000 in legal fees if the case had gone to trial Tuesday as planned, Weigle said.
"(Raykovich) didn't implicate anybody. The Raykovich settlement was done totally independent of Pastrick and Fife," Weigle said.
"The attorney general is just trying to take more credit when it's not due here."
The statement from Zoeller's office says Raykovich acknowledged helping Fife and Pastrick to ensure the politically connected contractors got "preferential payments." The statement also says: "To resolve the claims against him, Raykovich wrote the state a $160,000 check, acknowledged his actions and implicated Pastrick and Fife in the scheme."
Zoeller's statement was full of "unfair insinuations" that distort Raykovich's affidavit, Weigle said.
Bosch declined to comment Tuesday.
