Gambling and Graft(?): The Erie Casino Story, and a Pittsburgh Connection

Wow. The corruption story in Erie, in which the city's former mayor is facing serious, serious charges related to the location of a casino, ought to be getting more play here in Pittsburgh. Actually, one of the guys charged, the former mayor's law partner, is a Pittsburgh attorney. The Erie Times News runs an update and a nice rundown of the case today. They have been doing a real bang-up job on the story throughout. (And it is allowing me to cut and paste. Sweet. The link requires registration though. Worse, I think the link is weird. It might require you to search around a bit. If so, and if you are still interested, just go to www.goerie.com and cast about a bit. It'll be worth it if this kind of stuff is up your alley.)

Former Erie Mayor Rick Filippi is on trial in Washington County on public-corruption charges, along with Erie lawyer Eric Purchase and Pittsburgh lawyer Rolf Patberg.

Purchase was Filippi's adviser and campaign manager. Patberg is Filippi's law partner. The defendants were indicted Dec. 8, 2004.

The charges are related to land deals surrounding the former International Paper Co. site, which had been considered by MTR Gaming Group Inc. for an $80 million horse racing complex.

The state Attorney General's Office accused Filippi and his two associates of illegally using inside information from the Mayor's Office to try to profit by secretly buying property on East Lake Road through a company known as Aiko Acquisition LLC.

The defense claims no inside information was used in the land deals, and that efforts to redevelop the IP site were public knowledge.

Hmmm...

Comments

[Amos the Poker Cat]

The link seems fine.

It has gotten some limited coverage in the PG.

U.S. probe targets casino site - March 23, 2005

At the time, that International Paper site along the waterfront was considered a possibility for a racetrack/casino that will be built in Erie. But the developer of that facility, MTR Gaming President Ted Arneault, has since decided to build along Interstate 90 in Summit Township -- still in Erie County but south of the city.

Maybe it is just me, not following every detail of where or why each of the 14 casinos in the PA are proposed to be built, but I have to find a 2005 story to read that Filippi property was not bought by MTG, and that MTG is planning on building elsewhere. Not the most lucrative of insider info.

Also in this 2005 article, state Sen. Mike Stack, D-Philadelphia was under investigation for similar stuff. I am surprised there are not more. When the built the Denver Airport, land deals where flipping faster than a bed in a "no-tell" motel.

Ex-Erie mayor's fate up to jury - March 22, 2006
Misleading title, the trial continues, but 2 counts were dismissed.

Mr. Filippi characterized MTR Gaming as a greedy company that wanted the city to pay some $5 million to move the charter school from the proposed racetrack site.
The mayor rejected the deal.

It seems refusing the $5M in subsidies Filippi was flushing his investment down the drain.

Witnesses for prosecution talk up former Erie mayor - March 16, 2006

Even so, Mr. Spaulding said, the mayor balked when MTR Gaming of Chester, W.Va., talked of developing the property into a horse track and casino. The project itself seemed fine, but Mr. Filippi would not accept the developer's plan for $50 million in public subsidies, Mr. Spaulding said.

Was it $50M or $5M?