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Former southern Indiana lawmaker pleads guilty to federal corruption charge

Sean Eberhart, R-Shelbyville, helped pass a bill highly favorable to a casino company that had offered him a $350,000 job offer, the DOJ said.
Credit: BCFC - stock.adobe.com

INDIANAPOLIS — Former Indiana State Representative Sean Eberhart will plead guilty to felony corruption charges, according to a Department of Justice news release.

The 57-year-old lawmaker represented Indiana House District 57, which includes Shelby County and portions of Bartholomew and Hancock counties, for 16 years before leaving in 2022.

Although the DOJ didn't specify what charges the former lawmaker plead guilty to, according to the IndyStar, Eberhart was charged with committing honest services fraud in violation of Title 18 of the U.S. Code, Section 371, which carries a maximum sentence of five years imprisonment, a $250,000 fine and three years of supervised release.

Credit: AP Photo/Darron Cummings
Rep. Sean Eberhart, R-Shelbyville, left, talks with Rep. Charlie Brown, D-Gary, during a session at the Statehouse in Indianapolis. | Feb. 24, 2010

Court documents indicate while Eberhart was serving in the state's House of Representatives, a gaming company called Spectacle Entertainment sought to buy the state licenses for two casinos located on the waterfront of Lake Michigan in late 2018 and early 2019. 

The company wanted to move the casinos to other areas beneficial to Spectacle, the DOJ said.

In Indiana, the purchase and relocation of casinos must be approved through the passage of a bill by both houses of the legislature and then signed by the Governor.

A bill to allow Spectacle's purchases and relocation was introduced in the Indiana House and was considered by the House Committee on Public Policy, which Eberhart served on. 

The DOJ said the bill included provisions for Spectacle to pay a $100 million transfer fee.

According to the DOJ, an owner of Spectacle offered Eberhart a future job at the company with an annual salary of at least $350,000. Prosecutors said Eberhart agreed to the offer, and in exchange, he used his position in the House to advocate and ultimately vote for passage of the bill.

The FBI said it found text messages between Eberhart and the Spectacle owner saying the lawmaker would "make it right for" them in regards to ensuring passage of a bill favorable to Spectacle. 

Once passed, the terms of the bill were highly favorable to the company. Along with the purchase and relocation of the two casinos, the transfer fee was reduced to just $20 million. The bill also enacted tax incentives that benefited the company.

Eberhart's attorney requested the plea agreement to avoid the former lawmaker from facing the maximum sentence, according to the IndyStar. Eberhart has also agreed to pay $60,000 in restitution.

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