HAMMOND | A jury on Friday found East Chicago Mayor George Pabey guilty on counts of conspiracy and theft in his federal public corruption trial.
His co-defendant, former engineering department supervisor Jose Camacho was found guilty on two counts of conspiracy and theft, but was acquitted on two counts of witness tampering.
Senior Judge James T. Moody's courtroom was completely silent and the air heavy when the verdict was read. Both defendants sat expressionless upon hearing the verdict.
Pabey supporters outside the fourth-floor courtroom were crying.
Upon leaving the courtroom with his wife, Hilda; daughter, Lisette; and counsel Scott King, Pabey declined to comment.
But King said he and his client were "very disappointed with the results."
"I've known George for a very long time, and he's a good man ... this is East Chicago's loss," King said.
Hammond mayor Thomas McDermott Jr. shared King's disappointment.
"I'm shocked," McDermott said. "I thought the defense had a solid case. I feel badly for George. I know him, and he's a nice guy with a nice family. And I'm sad for the Lake County Democratic party to have this black eye, which makes my job harder. It's a sad day."
Based on an Indiana law change in 2008, the conviction means Pabey, now a felon, can no longer serve as mayor. City Controller Charlie "Tuna" Pacurar becomes the interim mayor until McDermott, as chairman of Pabey's party, conducts a caucus of East Chicago Democratic precinct committee members to elect a mayor to fill the remainder of Pabey's term, through 2011.
Statute gives McDermott 10 days to call the caucus.
"We want to move on this," McDermott said. "I don't want East Chicago to wonder too long who their mayor is, and we want to get through this as smoothly as possible."
King said he plans to appeal the conviction through the U.S. 7th Circuit Court of Appeals in Chicago, where he will take up "several issues," including instructions that were given to the jury.
King would not specify if the issues involved included instructions to the jury not to consider the statements from such witnesses as Johnny Perez claiming Camacho said the mayor would be angry with them if they found out what was going on at the Gary home. The jury was instructed not to consider that as evidence of whether or not Pabey had knowledge of the crime, but only in the context of Camacho's frame of mind.
Moody said sentencing will be determined at a later date.
The government will seek forfeiture of the Gary property.
Pabey surrendered his passport to the court before the trial began. Camacho did not have a passport to surrender. Both were released on their previously posted bond until sentencing.
William Padula, Camacho's attorney, said he and his client were "happy with the outcome."
"We pretty much conceded counts one and two (conspiracy and theft)," Padula said, adding that he was happy the jury saw the evidence "for what it was" regarding the tampering charges on which he was acquitted.
The jury completed deliberations in under three hours. Moody sent the cases to the jurors at 12:30 p.m. after about three hours of closing arguments by attorneys in the case in which prosecutors turned to their witness testimony and the defense painted the mayor as a victim.
Friday's closing arguments came on day five of the federal public corruption trial. Pabey and Camacho are facing charges of conspiracy and theft of city funds for allegedly having employees work on the home of Pabey's daughter while on the city clock.
Pabey bought the brick home in Gary's Miller Beach neighborhood in 2007 for $67,000, according to county records. A real estate appraiser testified that the home is now appraised at $135,000.
U.S. Attorney Gary Bell said Pabey and Camacho knew what they were doing.
"These are arrogant public officials who play by their own rules," Bell said in his 45-minute calm but passionate closing arguments.
Bell turned to the friendship between the pair, the receipts presented at trial and witnesses placing Pabey and Camacho at the home together while renovations were underway during the work week as evidence of their guilt. He urged jurors to use common sense in making their decision, saying anyone having work done on their home would come to check on it.
Pabey's defense attorney King, spent just over an hour in his closing arguments and painted Pabey as a victim of theft from his best friend, Camacho.
"Mr. Camacho was stealing from the city, he was stealing from his friend," King said. "That answers the question of how (Pabey) could not know."
King pointed to a $600 check Hilda Pabey, the mayor's wife, wrote to Camacho the same day Camacho purchased plumbing items for the home as proof that the work was handled legitimately. King said the Pabeys wish they had more receipts as proof, but they largely paid friends who worked on their homes in cash.
Padula, Camacho's attorney, reiterated his message from opening arguments that he would not contest.
"They went largely uncontested, but there are others we will vigorously offend and oppose," Padula said.
Padula turned to the conflicting testimony of government witnesses Adrian Vazquez and Javier Santos, saying the government can't ask jurors to believe parts of the testimony and not others.