[JHeath]

I'm just stunned...and can't even imagine how the IC board must feel. I just hope they can recover from this unfortunate series of events.

http://thenewsdispatch.com/main.asp?Sectio...&TM=46213.3

NEWS-DISPATCH EXCLUSIVE: I-C Baseball Loses $44,432
Authorities are pursuing criminal charges against former league treasure.

Adam Parkhouse
Sports Editor, The News-Dispatch

Thursday, October 25, 2007


MICHIGAN CITY - Local authorities are pursuing criminal charges against a former treasurer for the Intra-City Baseball League, The News-Dispatch has learned.

Peter Costello Jr., 53, Michigan City, allegedly misappropriated more than $40,000 in league funds during the three years he was in charge of the league's books, from 2004 to 2006.

Michigan City Police Det. Cpl. Cary Brinkman has filed paperwork with deputy La Porte County Prosecutor Steve Fenton seeking two counts of Class D felony theft against Costello. The allegations stem from money missing from a league-held certificate of deposit, and a similar amount that came from the estate of one of the league's founders.

"This is really a sad day for the organization," said Larry Shadley, the current I-C president who also ran the league during Costello's time as treasurer.

"It's very sickening to see someone has to steal from children. It's very sickening for me to have to see this."

Costello failed to return several requests for comment.

The News-Dispatch also has learned Costello was charged with two counts of Class D felony theft in 1993 after it was alleged he falsified applications for food stamps on two separate occasions. Costello pleaded guilty to two counts of criminal conversion, Class A misdemeanors, and was ordered to pay restitution in the amount of $3,467.

Shadley was stunned to hear of the prior conviction.

"If I knew he was convicted in 1993 ..." he said, "I wouldn't have had him doing our books."

THE MISSING CD

Now, Shadley and police allege Costello cashed in a CD in the league's name worth $22,300, and used the money in a personal, unauthorized manner.

The I-C board discovered the money was missing only after Shadley was notified by the Indiana State Prison superintendent that the league was behind on a NIPSCO utility payment in late January. Because the I-C fields are on prison property, the facility is under ISP's watch.

Shadley told The News-Dispatch he went to Costello to ask why the bills weren't being paid. Costello said the league was broke and didn't have enough money to pay the bills.

Nearly 10 years prior, the league was awarded $40,000 from the Michigan City Urban Enterprise Association to erect lights at Woodard Yards, where the league plays its games.

After the light job was mishandled, the league refused to pay the balance of the bill until the lighting company made things right. It never did, so the league kept the remaining $20,000 in a CD at First Source Bank, intending to use it as an emergency fund.

Shadley went to former I-C treasurer David Biela, whose name also was on the CD, to get money to pay the overdue utility bills. Biela and Shadley then discovered the CD was gone.

Shadley called a meeting with Costello and demanded the money be put back into the account. Two days later, Shadley said the money reappeared via a loan from a relative of Costello. Costello was forced to resign, and the I-C Board of Directors decided to let the matter drop.

THE DONATION

That was until recently, when Shadley and Biela learned of a donation made from the estate of Francis Nespo to the league. Nespo died on Oct. 25, 2004, at 76. He was stricken with polio as a child and lived his life in a wheelchair.

Nespo was heavily involved in area athletics, including serving as president of the Michigan City White Caps, a minor league professional baseball team, and the first president of the I-C Baseball League.

In his will, Nespo left 7 percent of his estate - $22,797.18 - to I-C to establish the "Fran Nespo Memorial Scholarship Fund." The executor of Nespo's estate, his brother, Daniel, contacted Costello and presented him with the check on Aug. 6, 2006.

Two days later, Costello deposited it into the league account, and fewer than five months after that, the money was nearly gone.

Bank records obtained by The News-Dispatch indicate a total of 49 checks written from the I-C account from Aug. 9 to Dec. 21, 2006. Of those checks, Shadley labeled five as possibly legitimate, totaling $586.75.

The others? There are 13 checks written out to cash with no notation, totaling $4,700. There are 24 other checks either made out to cash with notations for unauthorized expenses, or made out to companies for unauthorized expenses, for a total of $14,732.64. The last seven checks during this period were written out to Costello or his wife, Deborah, for a total of $2,700. All checks are signed by a Pete Costello.

Shadley and current I-C treasurer Nick Andresen pointed out it's highly unusual for checks to be written from the league account during the offseason. When they are, it's to make utility payments to NIPSCO or the Water Department.

In all, there were allegedly $22,132.64 worth of unauthorized debits from the I-C account during a four-month stretch.

Shadley said there was no formal monitoring process for I-C in relation to its treasurer. The league operated smoothly for years, so he didn't believe it was necessary to micromanage a man he trusted.

"Me and Pete formed a pretty good friendship, and I had some really good times with Pete. But he took advantage of our friendship," Shadley said. "I was president in 2006, but I trusted the man and did not look over his shoulder every day."

Shadley went on to say that as a result, Andresen does not have the same kind of latitude.

THE ENDGAME

Though he once considered Costello a friend, Shadley was clear about what he would like to see happen, should Costello be convicted of any potential charges.

"I'd like to see Pete go to jail," Shadley said. "I honestly believed that Pete had the best interest of the league at heart. It was not only based on my trust, but on the trust that the league and Mr. Biela had in him. Obviously, me and Mr. Biela was wrong."

Though the prospect of Nespo's money being used for a scholarship fund appears grim at this point, Shadley has a plan to recognize the man who is as responsible as anyone for the league still running today.

I-C will memorialize the field where its 10- to 12-year-olds play in Nespo's name prior to the start of the 2008 season.

"That's what I'm going to do for the family; that's my commitment to them," Shadley said. "It's the least I can to for the family, and I deeply apologize to them."

Contact Sports Editor Adam Parkhouse at aparkhouse@thenewsdispatch.com or 874-7211, Ext. 461.

Georgette Senter contributed to this report.

[JHeath]

http://thenewsdispatch.com/main.asp?Sectio...amp;TM=46519.91

Many Puzzling Notations
I-C president disputes checks written by treasurer.

Adam Parkhouse
Sports Editor, The News-Dispatch

Thursday, October 25, 2007


MICHIGAN CITY - Checks written and signed by Pete Costello from the Intra-City Baseball League account contain many puzzling notations.

Large amounts were written out for labor, sod and even a pricey piece of farm equipment, all of which I-C president Larry Shadley now says weren't real expenses.

The odd activity on the account from Aug. 9 to Dec. 21, 2006 - following a donation made from the estate of Francis Nespo, one of I-C's founders - begins with a check written on Aug. 9 to Al's Valueland with a notation on the bottom reading "Feed workers."

The problem, according to Shadley, is that inmates at Indiana State Prison - whose property I-C's field sits on - perform all the work on the field and are not paid for their efforts.

Other checks written for work that would have been provided for offenders include (notation): $500 on Aug. 8 (plumber repair), $500 on Aug. 11 (fencing and labor), $300 on Aug. 21 (field clean-up crew), $800 on Sept. 1 (field sod), $300 on Sept. 21 (catering), $300 on Sept. 25 (lawn sod), $400 on Sept. 18 (labor for electric work), $400 on Sept. 26 (labor cost).

On Aug. 22 of 2006, a check was made to "CASH" in the amount of $5,000 with a notation for "lawn tractor."

The problem? Shadley said the only lawn tractor the league owns is a $1,000 Craftsman purchased in 2004.

In addition, there are a handful of checks notated for private purposes. On Aug. 21, a $25 check was written to Health Partners for a "co-payment." On Aug. 25, a check for $1,563 was written to Apex Muffler for "car shocks." Shadley said I-C does not own any type of vehicle. Finally, on Sept. 23, a check was made out to the Bureau of Motor Vehicles for $63.95 for "plates."

Also noted through the bank records obtained by The News-Dispatch are numerous funds: $1,500 on Aug. 18 for "picnic funds," $200 on Sept. 30 for "camp fund" and $800 on Oct. 6 for "field trip." Shadley said none of these funds exist within I-C, nor does he know of anything the money may have been applied to.

Finally, there are seven checks written out to "Pete Costello" or "Deborah Costello," totaling $2,700. A pair of $500 checks was written on the same day as the "camp fund" check.

The odd expenditures weren't just limited to the period following the Nespo donation. On May 31, 2006, a check was written "for Ann's rent" in the amount of $100.

Costello failed to return requests for comment.

Contact Adam Parkhouse at aparkhouse@thenewsdispatch.com or 874-7211, Ext. 461.

[Southsider2k12]

Good god, what is wrong with people?

[Roger Kaputnik]

Horrible.

[Ang]

I am utterly speechless. I know a lot of the people mentioned in the story (I even know who Ann is). I am shocked and apalled and don't even really know what to say. Except maybe, "Wow!"

[Ang]

BTW, I moved this thread into the Sports section

[Southsider2k12]

http://thenewsdispatch.com/main.asp?Sectio...amp;TM=48288.79

Former I-C Baseball League Treasurer Appears In Court

Georgette Senter
The News-Dispatch

MICHIGAN CITY - The man accused of stealing more than $40,000 in Intra-City Baseball League funds appeared in Superior Court 4 on Friday morning.

Peter J. Costello, 53, 127 Faulkner St., was represented by attorney William Nelson Jr. He turned himself into police Thursday afternoon after learning a warrant was issued for his arrest on two counts of Class D felony. He posted a $5,000 bond.

If found guilty, Costello could be sentenced to anywhere from six months to three years in jail. His next court appearance is Nov. 13.

The allegations against Costello stem from money missing from a league-held certificate of deposit, and a similar amount from the estate of one of the league's founders.

The News-Dispatch learned about the problem when Larry Shadley, current I-C president, who also ran the league during Costello's time as treasurer, and Dan Nespo discovered the estate of Francis Nespo had made a considerable donation to the league. Nespo died on Oct. 25, 2004, at 76.

When Shadley and Nespo tried to track down how much money was available in the bequest, they found nothing left.

q

Contact Georgette Senter at gsenter@thenewsdispatch.com.