Why Does the State Continue to Award Contracts to Embattled Real Estate Broker?
FOR IMMEDIATE RELEASE
May 19, 2010
Democratic Party Chair Questions the Indiana Department of Administration's Business Dealings with Real Estate Broker
Why does the State continue to award contracts to the embattled real estate broker, John Bales?
INDIANAPOLIS - Recently, it has been learned that the state of Indiana had plans to sell more than 700 acres of land surrounding the Pendleton Correctional Facility sometime within the next month.
However, after the move came under intense scrutiny from Pendleton residents, including current and former prison correctional officers, who expressed concerns that selling the state-owned land would eliminate a buffer zone between the prison and the town, the deal has been delayed.
This deal was highly questionable in the first place, given this land represented the only buffer zone between the Pendleton Correctional Facility and the Maple Ridge Elementary School, located across the street from one of the tracts of land that was for sale.
The land was set to be auctioned off on June 3.
Of additional concern was the real estate company the Indiana Department of Administration hired to broker the deal and auction off the property - Venture Co., which is owned by John Bales.
John Bales has been under intense scrutiny recently for his role in numerous, questionable real estate and business dealings involving Marion County Prosecutor Carl Brizzi, financier Tim Durham, who is one of Brizzi's largest campaign contributors and now the target of a federal securities-fraud probe, and the State of Indiana.
It has been reported that Bales' firm earned $2.9 million in commissions on lease deals for state agencies from 2006 to 2009, and another $270,000 in commissions on the sale of surplus state properties. He has also profited on lease deals for local government agencies and private companies with contracts to run parts of the state's welfare program.
In addition, Bales is a significant campaign donor to the Governor and state Republicans having donated over $32,000 to the Mitch Daniels For Governor Campaign Committee from 2003-20008, $10,000 to the Greater Indianapolis Republican Finance Committee in 2007 and $10,000 to the Indiana State Republican Committee from 2007-2008.
The FBI is currently looking into an Elkhart real estate deal specifically involving Brizzi and John Bales. The building is leased by the Department of Child Services.
The important question is, why is the State, and specifically the Indiana Department of Administration, continuing to work with such a questionable character like John Bales? Especially given the intense level of scrutiny Bales' company Venture Co. has come under in recent weeks.
"Mitch Daniels has a lot of explaining to do on this matter and his continued dealing with Venture Co. and John Bales," said Indiana Democratic Party Chair Dan Parker.
"Why is the state of Indiana working with John Bales?" The Governor needs to explain this to the people of Indiana. You would think Governor Daniels would distance himself from questionable characters, especially those named in FBI probes and those with a history of suspicious business dealings that have been well documented recently."
"Governor Daniels needs to explain to Hoosiers the extent of this relationship with Venture Co. and John Bales. And further explain whether he and the Indiana Department of Administration are going to continue to work with Bales in the future."
"The Administration has shown poor judgment and questionable leadership on this matter. Like my fellow Hoosiers, I expect answers from Governor Daniels."
Contact: RJ Gerard, rgerard@indems.org, 317-231-7125