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http://www.nwitimes.com/news/local/lake/garyhttp://www.nwitimes.com/news/local/lake/gary/article_b6f65c5c-e325-5e1b-bd13-5140fee01c85.html
The group trying to build a multimillion-dollar Michael Jackson megaplex in Gary now is tied to a nonprofit that has two officers accused of fraud in recent years.
But the project's lead developer is defending the move to partner with the nonprofit and said the combined groups will further the mission to bringing job opportunities to the Steel City.
The Jackson Family Heritage Foundation Inc. has assumed the Merrillville nonprofit Positive Action Inc., according to documents filed last week with the Indiana Secretary of State. A document signed Thursday by Patricia Freeland, Positive Action's president, treasurer and director, said five board members voted to merge their group with the Jackson foundation but does not list those members.
According to its state filings, the mission of Positive Action, established in 2003, is to give construction job training in underserved areas and to help "clients to become productive citizens."
Developer and Jackson foundation President Simon Sahouri said he learned about Positive Action a few months ago and the foundation became partners with the group because of the roots it has established in the area. He also said the group has potential to create opportunities for Gary residents.
"Our main objective is to make sure we move forward with this project," Sahouri said.
In June, Sahouri and Gary Mayor Rudy Clay announced plans for a museum-anchored shrine dedicated to the Jacksons, expected to cost at least $300 million. The city signed a real estate deal that would transfer more than 300 acres of city land to the foundation.
Gary Corporation Counsel Susan Severtson has said that, per Indiana law, the foundation must establish itself as a tax-exempt charitable organization according to Internal Revenue Service guidelines before the transfer can be complete. She did not return calls for comment Tuesday. It's unclear if the merger with Positive Action, an established tax-exempt group, grants the Jackson group the status needed to get its ambitious center plans rolling.
Federal and Lake County court records show Freeland and former Positive Action board member LaDonna McCloud have faced separate fraud charges.
Freeland was charged in May 2005 in Lake County with fraud on a financial institution, but the charges were later dropped. Freeland went on to sue a Merrillville police officer, the town of Merrillville, the bank and its manager in Hammond federal court in August 2006 for at least $5 million, accusing them of false arrest and claiming they had slandered her, causing her to lose her job.
According to the lawsuit she filed in Hammond federal court, the various defendants said the bank's manager called Merrillville police in May 2005 after Freeland tried to deposit in her account two checks, one for $100,200 and another for $42,131.55. The manager confirmed the checks were fraudulent, court records state.
Freeland claimed she had not been trying to deposit the checks, but rather have the bank's manager verify them as authentic.
A judge ruled against Freeland, in part citing police had probable cause to think she was attempting fraud because she had passed a fake check at the same bank the month before.
The two May 2005 checks made out to Freeland had the same P.O. Box address as the one listed for her nonprofit, Positive Action.
The Times attempted to reach Freeland on Tuesday at a listed phone number that was disconnected and at a Merrillville residence listed for her.
Freeland's lawyer in her federal lawsuit, Tracy Coleman of Robert L. Lewis and Associates in Gary, did not respond to a Times call Tuesday.
Sahouri said Freeland will manage Positive Action under the auspices of the foundation, despite past legal issues. He said all other board members previously part of the group have resigned.
"Patricia's personal business is no business of what we're doing," Sahouri said. "It had nothing to do with the decision whatsoever."
McCloud, Freeland's fellow Positive Action officer, faces criminal charges of check fraud, check deception and conversion, dating between August 2006 and December 2008.
The Times requested Tuesday, but did not receive, more information about McCloud's charges from the Lake County prosecutor's office.
McCloud's lawyer, Robert Lewis, of the same law firm, said her cases are pending, and not tied to Positive Action.
When reached Tuesday, McCloud said Positive Action is "in the process of being dissolved."
She declined to further discuss the group, or her court cases.
Gary city spokeswoman LaLosa Burns said Tuesday that Clay is deferring comment to Sahouri.
The group trying to build a multimillion-dollar Michael Jackson megaplex in Gary now is tied to a nonprofit that has two officers accused of fraud in recent years.
But the project's lead developer is defending the move to partner with the nonprofit and said the combined groups will further the mission to bringing job opportunities to the Steel City.
The Jackson Family Heritage Foundation Inc. has assumed the Merrillville nonprofit Positive Action Inc., according to documents filed last week with the Indiana Secretary of State. A document signed Thursday by Patricia Freeland, Positive Action's president, treasurer and director, said five board members voted to merge their group with the Jackson foundation but does not list those members.
According to its state filings, the mission of Positive Action, established in 2003, is to give construction job training in underserved areas and to help "clients to become productive citizens."
Developer and Jackson foundation President Simon Sahouri said he learned about Positive Action a few months ago and the foundation became partners with the group because of the roots it has established in the area. He also said the group has potential to create opportunities for Gary residents.
"Our main objective is to make sure we move forward with this project," Sahouri said.
In June, Sahouri and Gary Mayor Rudy Clay announced plans for a museum-anchored shrine dedicated to the Jacksons, expected to cost at least $300 million. The city signed a real estate deal that would transfer more than 300 acres of city land to the foundation.
Gary Corporation Counsel Susan Severtson has said that, per Indiana law, the foundation must establish itself as a tax-exempt charitable organization according to Internal Revenue Service guidelines before the transfer can be complete. She did not return calls for comment Tuesday. It's unclear if the merger with Positive Action, an established tax-exempt group, grants the Jackson group the status needed to get its ambitious center plans rolling.
Federal and Lake County court records show Freeland and former Positive Action board member LaDonna McCloud have faced separate fraud charges.
Freeland was charged in May 2005 in Lake County with fraud on a financial institution, but the charges were later dropped. Freeland went on to sue a Merrillville police officer, the town of Merrillville, the bank and its manager in Hammond federal court in August 2006 for at least $5 million, accusing them of false arrest and claiming they had slandered her, causing her to lose her job.
According to the lawsuit she filed in Hammond federal court, the various defendants said the bank's manager called Merrillville police in May 2005 after Freeland tried to deposit in her account two checks, one for $100,200 and another for $42,131.55. The manager confirmed the checks were fraudulent, court records state.
Freeland claimed she had not been trying to deposit the checks, but rather have the bank's manager verify them as authentic.
A judge ruled against Freeland, in part citing police had probable cause to think she was attempting fraud because she had passed a fake check at the same bank the month before.
The two May 2005 checks made out to Freeland had the same P.O. Box address as the one listed for her nonprofit, Positive Action.
The Times attempted to reach Freeland on Tuesday at a listed phone number that was disconnected and at a Merrillville residence listed for her.
Freeland's lawyer in her federal lawsuit, Tracy Coleman of Robert L. Lewis and Associates in Gary, did not respond to a Times call Tuesday.
Sahouri said Freeland will manage Positive Action under the auspices of the foundation, despite past legal issues. He said all other board members previously part of the group have resigned.
"Patricia's personal business is no business of what we're doing," Sahouri said. "It had nothing to do with the decision whatsoever."
McCloud, Freeland's fellow Positive Action officer, faces criminal charges of check fraud, check deception and conversion, dating between August 2006 and December 2008.
The Times requested Tuesday, but did not receive, more information about McCloud's charges from the Lake County prosecutor's office.
McCloud's lawyer, Robert Lewis, of the same law firm, said her cases are pending, and not tied to Positive Action.
When reached Tuesday, McCloud said Positive Action is "in the process of being dissolved."
She declined to further discuss the group, or her court cases.
Gary city spokeswoman LaLosa Burns said Tuesday that Clay is deferring comment to Sahouri.
