As first reported in the most recent edition of The Cheat Sheet, Indy Politics has learned that Indiana Secretary of State Diego Morales is under federal investigation for alleged allegations of money laundering and violating the federal racketeering statute.
Our sources tell us this reportedly involves a local Mexican restaurant, which our sources tell us has served as a money laundering front for either the Mexican or Guatemalan drug cartels.
Morales’ connection to this has likely involved money laundering as a facilitator or connector. Now, exactly how he allegedly accomplished this is still unclear.
Indy Politics did contact the FBI this weekend for comment. Spokesperson Christine Bavender said, “Per policy, we don’t confirm or deny the existence or nonexistence of investigations.”
This is not the only issue facing Morales; he has also been accused of allegedly using state property (e.g., e-mails) to raise money for his political campaign. We are also told that Secretary of State employees who received bonuses were “asked” to “donate” a portion of their check to his political campaign.
Indy Politics is told the Holcomb administration is aware of this and is leaving all this up to Governor-Elect Mike Braun.
We are also told to expect formal charges to be filed sometime after Thanksgiving.
Indy Politics has contacted a representative from Diego’s office for comment. We will let you know if they respond.
It is also important to remember that Morales is obviously innocent until proven guilty and is entitled, and rightly so, to due process. That should not be forgotten. However, as we wrote in this weekend’s Cheat Sheet, this will probably not end well.
