Casino Funds Enriched Ex-Indiana Democratic Chairman

EAST CHICAGO, Ind. (AP) _ Newly release documents show more than $6 million generated by revenue from East Chicago's casino that was intended for economic development instead enriched a former Indiana Democratic chairman, his business partner and their families.
Attorney General Greg Zoeller on Wednesday released a settlement agreement with the development firm Second Century Inc. that shows the funds went to Michael Pannos, partner Thomas Cappas and seven of their family members between 1997 and 2008. Pannos chaired the state Democratic Party in the late 1980s and early 1990s. 

He, Cappas and their family members invested in the Showboat casino that opened in 1997. After Harrah's bought the riverboat in 1998, the Indiana Gaming Commission allowed them to take over Second Century. The men told the commission then they would take no salaries.