Thursday, May 15, 2008

The Race-Track Scandal

Otto Kerner, Jr. was a Democratic governor of Illinois from 1961 to 1968. Kerner soon later became judge on the United States Court of Appeals for the Seventh Circuit on May 20, 1968 after he resigned as a governor. In 1968 in a routine audit of Kerner tax return revealed that he was getting income form a stock call "Chicago Company". In 1969 ,Marge Lindheimer Everett, manager of Arlington Park race tracks ammited that bribing Otto Kerner, to gain additional racing dates and turning Washington Park into a track, which would increase her income. The bribes was if Kerner get additional racing dates and turning Washington Park into a track she would give him 50 share in her stock the "Chicago Company". He then later was sue for bribery, extortion and income tax fraud. Goverment investor soon learned that Kener also was getting income of $22,400 in a 10 month period on stock in different Everett interests. Kerner has lose his case and he was convicted on 17 counts of bribery, conspiracy, perjury, and related charges. He was also sentenced to three years in federal prison and fined $50,000. He also resign as U.S. Seventh Circuit Court of Appeals in 1974 after he lose his case. However Kerner was released early from prison when it was determined that he was suffering from terminal cancer.

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