A federal grand jury has indicted a northwestern Indiana mayor, his wife and a former city employee on corruption charges, prosecutors said.
The charges announced Wednesday allege Lake Station Mayor Keith Soderquist and his wife, Deborah, conspired to commit wire fraud by taking cash for gambling and other purposes from a campaign finance account and a city food pantry. Deborah Soderquist, while serving as an administrative assistant to her husband, assisted in the food pantry's operations.
The grand jury also indicted former city employee Miranda Brakley for allegedly stealing funds from the city about five miles southeast of Gary and the Soderquists for allegedly helping her hide the theft.
All three pleaded not guilty Thursday morning and were released on $20,000 bond.
The Soderquists were also charged with filing false tax returns for three years starting in 2010. Authorities said the pair failed to disclose the money they took from the campaign and food pantry that was ultimately used for their own personal expenses.
A telephone message seeking comment was left at the Soderquists' home. Brakley doesn't have a published telephone listing in the area.
The charges stem from an investigation launched after a State Board of Accounts audit.
