• Tribune-Star

A former investor in Vigo County’s new casino venture has been indicted on federal charges related to violations of campaign finance laws.

John Keeler, a former Indiana lawmaker and gaming executive, and former Indiana Sen. Brent Waltz, have been indicted. The U.S. Attorney’s Office for the Southern District of Indiana announced the charges Tuesday.

Keeler and longtime Indiana gaming executive Rod Ratcliff earlier this year sold their stakes in Spectacle Jack LLC, which was formerly a subsidiary of Spectacle Entertainment but is now a standalone business. Spectacle Jack is controlled by Greg Gibson, a Terre Haute businessman who also is vice chairman of Spectacle Entertainment.

Keeler, 71, has been charged with one count of conspiracy to make illegal corporate contributions, false statements and to obstruct justice; one count of making illegal corporate contributions; one count of obstruction of justice; and one count of making false statements.

Waltz, 47 has been charged with one count of conspiracy to make conduit contributions, false statements and to obstruct justice; one count of making and receiving conduit contributions; one count of obstruction of justice; and two counts of making false statements.

Waltz was not involved with Spectacle Entertainment. He was involved with Centaur Gaming, which had two operations in central Indiana. Centaur was identified by officials as being involved in a scheme directing more than $15,000 in illegal corporate contributions to an unsuccessful Indiana congressional candidate, but no charges had been filed in May against the company or its executives.

The charges are related to a scheme to route contributions through conduit donors to Waltz’s 2016 congressional campaign.

The FBI executed an arrest and search warrant Monday morning at Waltz’s house.

Earlier this year, the Indiana Gaming Commission scrutinized the Spectacle Jack proposal for a casino in Terre Haute due to the involvement of Keeler and the pending federal investigation. After Keeler separated himself from Spectacle Jack, approval for the casino moved forward.

Keeler remains general counsel for Spectacle Entertainment, according to the company’s website.

Gibson told the Tribune-Star on Tuesday that Keeler no longer has any involvement in the Terre Haute casino project.

“He is not a shareholder in Spectacle Jack and does not act as our legal counsel,” Gibson said. “Spectacle Jack is working hard to build a successful gaming facility in Terre Haute. We believe this project will bring new economic vitality to the city, our region, and the state of Indiana.”

Ratcliff stepped away from his role as CEO and chairman of Spectacle Entertainment in June, according to Steve Bittenbender of Casino.org, although Bittenbender reports Ratcliff still remains a significant investor in Spectacle Entertainment.

In his place Jahnae Erpenbach has been appointed CEO and chairman of Spectacle Entertainment.

Ratcliff and Keeler have the option to repurchase their stakes in Spectacle Jack — the Vigo County licensee — but that their doing so would require gaming commission approval.

That option might be unlikely. Commission Chairman Michael McMains this spring alluded to the federal investigation, saying, “In all candor, had you not made those changes [in ownership] and brought the new application forward, we wouldn’t have considered it.”

— Howard Greninger of Tribune-Star also contributed to this report.
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