'I plead guilty': Former Indiana GOP Sen. Brent Waltz admits role in straw donor scheme
Former state Sen. Brent Waltz admitted in federal court Monday that he participated in a scheme to funnel $40,500 in illegal contributions to his failed campaign for Congress in 2015.
Under an agreement with prosecutors, Waltz pleaded guilty to making and receiving conduit contributions and making false statements to the FBI. The plea agreement comes just one week before Waltz and John Keeler, another former lawmaker turned casino executive, were scheduled to go to trial.
Prosecutors say the illegal campaign contributions were fueled with cash from one of Indiana's largest casino operators, Centaur Gaming. To hide the true source of the contributions, the money was funneled through a Maryland political consultant under a sham consulting agreement. The consultant and Waltz then used that money to reimburse more than a dozen "straw donors" who contributed to Waltz's campaign for U.S. House, according to prosecutors.
Federal election law prohibits making or receiving donations in someone else's name and limits contributions to $2,900 per election.
The two charges each carry a maximum sentence of 5 years in prison, but Waltz is likely to receive significantly less time under the plea deal. Prosecutors agreed to recommend a sentence at the low end of the sentencing advisory range.
Waltz was initially charged with several other counts, but they will be dismissed as part of the plea agreement. Sentencing has not been scheduled yet.
It was not immediately clear what Waltz's plea agreement might mean for Keeler, whose trial is still scheduled to begin on April 18. The plea deal makes no mention of Waltz cooperating with prosecutors or testifying against Keeler.
An attorney for Keeler said his client plans to proceed to trial next week. Keeler has pleaded not guilty.
At the time of the campaign contributions, Keeler was vice president and general counsel for Centaur Gaming, the Indianapolis company that owned the state's two horse track-casinos in Anderson and Shelbyville.
Keeler, a former state representative, is accused of funneling nearly $80,000 from Centaur to a pair of companies controlled by Maryland political consultant Kelley Rogers. Prosecutors say the money was intended for Waltz's campaign.
To cover their tracks, Keeler and Rogers created fake consulting agreements to "provide monitoring of all presidential candidates" and "review racetrack betting facilities," prosecutors say.
In reality, Rogers used $29,000 to reimburse friends and associates who contributed the maximum allowable $2,700 to Waltz's congressional campaign, according to a grand jury indictment in 2020.
Rogers also paid Waltz an additional $16,500, most of which Waltz used to recruit and reimburse several additional straw donors. Rogers kept more than $30,000 as a fee for his services, the indictment says.
In all, Waltz's campaign received more than $40,500 in straw contributions.
During Monday's plea hearing, Waltz gave mostly one or two word answers in response to questions from Judge James R. Sweeney III. The Greenwood Republican's lengthiest statement came when the judge asked him how he pleaded.
"I plead guilty," he said.
In addition to the straw donor scheme, Waltz also admitted to lying to the FBI.
The plea agreement says Waltz told investigators the money was a retainer for Waltz's investment baking services. In reality, it was money he received from Rogers and used to reimburse family members and business associates for campaign contributions.
Waltz and his attorney, Russell A. Johnson, declined to take questions from IndyStar after Monday's hearing.
Contact IndyStar reporter Tony Cook at 317-444-6081 or tony.cook@indystar.com. Follow him on Twitter: @IndyStarTony.
This article originally appeared on Indianapolis Star: Former Indiana Senator. Brent Waltz admits role in straw donor scheme
