A former Indiana lawmaker, Sean Eberhart, has agreed to plead guilty to the charge of conspiracy to commit honest services fraud, federal prosecutors announced on Friday. The charge alleges that Eberhart accepted promises of lucrative employment from a gaming company during his time in public office. If convicted, Eberhart could face up to five years in prison, three years of supervised release, and a $250,000 fine.
Eberhart, a former Republican state representative who served central Indiana’s House District 57 for 16 years, is accused of accepting compensation and the promise of future employment in exchange for favorable action in the General Assembly. The gaming company in question, Spectacle Entertainment, sought to purchase two casinos located on Lake Michigan in Gary, Indiana, and relocate them to downtown Gary and Vigo County.
The purchases and relocation of the casinos required approval from the Legislature and the governor. Eberhart, who was a member of the House Committee on Public Policy, used his position to advocate and vote for the successful passage of a bill that favored Spectacle. This included reducing the transfer fee from $100 million to $20 million and enacting tax incentives that would benefit the company.
In exchange for his actions, Eberhart allegedly accepted the promise of future employment at Spectacle, with an annual compensation of at least $350,000. Evidence obtained by investigators includes text messages, call records, digital images of documents, covert recordings of conversations with Eberhart, and audio and video recordings of statements and actions in the Indiana legislature.
Republican Speaker of the House Todd Huston expressed deep disappointment and frustration in reaction to the news of Eberhart’s alleged actions. He emphasized that such conduct goes against the core values of the assembly and undermines its credibility and transparency.
Spectacle Entertainment has faced previous federal investigations. In 2022, casino executive John Keeler and former Indiana state senator Brent Waltz were sentenced for their involvement in the illegal funneling of gambling money into a congressional campaign. Keeler, a Republican legislator in the 1980s and 1990s, was sentenced to two months in federal prison and fined $55,000. Spectacle was forced to relinquish ownership of two casino projects following the indictments.
The plea hearing for Eberhart has yet to be scheduled, and his attorney declined to comment on the matter. As the investigation continues, it remains unclear if other individuals, including the founder of Spectacle identified as “Individual A” in court documents, will also face charges.
Overall, this case highlights concerns about corruption and undue influence in the legislative process. It raises questions about the integrity of public officials and the need for stronger safeguards to prevent such abuses of power.
