Indiana City Shops for Crime Insurance to Cover Official Corruption


East Chicago, Ind., is shopping for a so-called “crime insurance policy” to cover the behavior of employees, commissioners and other workers, reports the Northwest Indiana Times. A recent State Board of Accounts audit suggested that the city buy such a blanket bond policy, something never before done in East Chicago, the city controller said. Some employees who accept money or write checks currently are covered by individual fidelity bonds based on their positions, but a policy insuring against dishonest, fraudulent or criminal acts by all people acting on behalf of the city is something new.

Eleven East Chicago officials have been convicted of financial crimes over the past decade. A former mayor and former city controller are serving federal prison sentences, and a former city councilman is believed to have fled the country to avoid a similar punishment. The council adopted an ordinance allowing up to $300,000 coverage for the crime insurance policy.

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