U.S. Attorney Clifford D. Johnson | U.S. Department of Justice
U.S. Attorney Clifford D. Johnson | U.S. Department of Justice
Sean Eberhart, 58, of Shelbyville, has been sentenced to one year and one day in federal prison, followed by one year of supervised release, after pleading guilty to conspiracy to commit honest services fraud.
According to court documents, from 2006 to 2022, Sean Eberhart served as the elected representative of Indiana House District 57, which includes Shelby County and portions of Bartholomew and Hancock counties. During his tenure, Eberhart was a member of the House Committee on Public Policy, which has jurisdiction over matters concerning casinos and gaming in Indiana.
From January to May of 2019, Eberhart conspired with Individual A to devise a scheme using Eberhart’s official elected position to benefit that person’s company, Spectacle Entertainment. Spectacle Entertainment was formed by Individual A after Centaur, a company that owned and operated off-track betting facilities in Indiana, including the Shelbyville Casino in Eberhart’s District, was acquired by Caesars Entertainment in July of 2018. After that acquisition, Individual A formed Spectacle Entertainment and many of the same executives of Centaur continued in substantially similar roles as executives of Spectacle.
As part of the illegal scheme, Eberhart agreed to use his position in the Indiana House of Representatives to advocate for and vote on a Gaming Bill that positively impacted Spectacle. Terms in the bill would authorize the transfer of licenses for two casinos on Lake Michigan to Spectacle’s ownership in Gary and Terre Haute, Indiana while reducing the usual $100 million transfer fee that Spectacle was originally set to pay to only $20,000.
On March 27, 2019, during an Indiana House Public Policy Committee hearing, Eberhart vocally advocated removing the $1 million transfer fee from the Gaming Bill entirely. At a hearing on April 23, 2019, he advocated for a 20% tax rate that would save Spectacle tens of millions of dollars. The next day, he voted in favor of the Gaming Bill and those associated tax provisions.
In return for his advocacy and vote for the Gaming Bill, Eberhart accepted the promise of future employment at Spectacle with an annual salary of $350,000 and equity stake in the company.
“This criminal’s former constituents and all Hoosiers rightfully expect elected officials to act on the public’s behalf and not line their own pockets. Legislation must not be for sale to the highest bidder,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Public office is a public trust; those who break that trust by taking bribes will be identified and held accountable.”
The FBI investigated this case. The sentence was imposed by U.S. District Judge Matthew P. Brookman who also ordered Eberhart pay $25,000 in fines and $60,000 in restitution.
U.S. Attorney Myers thanked Assistant U.S. Attorney Bradley P. Shepard who prosecuted this case.
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