Don’t expect any changes to the law or statehouse ethics rules in the wake of former State Rep Sean Eberhart’s guilty plea to federal conspiracy charges.

Eberhart pleaded guilty last week to federal conspiracy charges.

According to court documents, Eberhart pleaded guilty to Conspiracy to Commit Honest Services Fraud in violation of Title 18, United States Code, Section 371.  The offense is punishable by a maximum
sentence of five years of imprisonment, a $250,000 fine, and three years of supervised release following any term of imprisonment.

According to court documents, Eberhart was the elected representative for Indiana House District 57, which included Shelby County and portions of Bartholomew and Hancock counties. Eberhart served on the House Committee on Public Policy, which had jurisdiction over matters concerning casinos and gaming in Indiana.

In late 2018 and early 2019, a gaming company called Spectacle Entertainment sought to purchase the state licenses for two casinos that were located on the waterfront of Lake Michigan, and to relocate those casinos to other areas beneficial to Spectacle. Purchases and relocations of casinos in Indiana must be approved through the passage of a bill by both houses of the Indiana legislature, then signed by the Governor.

A bill to allow Spectacle’s purchases and relocations was introduced in the Indiana House and considered by the House Committee on Public Policy. In addition to approving the purchases and relocations of the casinos, the bill included provisions for Spectacle to pay a “transfer fee.”

According to the federal charges, an owner of Spectacle, identified as Individual A, offered, and Eberhart accepted, the promise of future employment at Spectacle, which included annual compensation of at least $350,000. In exchange, Eberhart allegedly used his position as a member of the Indiana House of Representatives to advocate and ultimately vote for passage of the bill on terms favorable to Spectacle, including to authorize the transfer and relocation of the two casinos, reducing the transfer fee from $100 million to $20 million, and enacting tax incentives that would benefit Spectacle. Additionally, Eberhart allegedly sent text messages regarding his efforts to secure legislation favorable to Spectacle and to “make it right for” Individual A.

The charges were announced by Zachary A. Myers, United States Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office. The FBI investigated this case.

A spokesperson for Senate Leadership told Indy Politics that Eberhart’s behavior went  gainst existing rules and law.

House Speaker Todd Huston released the following statement…

“I’m beyond disappointed and extremely frustrated to learn of this news involving a former state representative.  ,Any such conduct runs counter to our core values and everything our assembly stands for and strives to protect – a trusted, credible and transparent institution that’s responsible only to Hoosiers. I’ll continue working every day to ensure we serve and protect the public interest, and that this legislative body conducts itself with the highest level of integrity and civility.”

Senate President Pro Tem Rod Bray issued this statement…

“As elected officials, it is imperative we conduct ourselves with the utmost integrity as we serve the people of our state. To that end, I am incredibly disappointed and shocked to learn of the investigation into and the charges brought against the former state representative.  “I am pleased to learn he is taking responsibility for his actions, but this behavior is unacceptable, period. Hoosiers expect better from our elected officials, and so do I.”

Under the plea agreement, Ebehart could serve two years in prison and pay a $60,000 fine.