Lottery executive wants state to investigate her

Friday, June 23, 2006 posted 11:34 AM EDT

Hoosier Lottery Executive Director Esther Schneider said she hopes the state's inspector general does investigate an anonymous complaint lodged against her that accuses her of numerous ethical and legal transgressions.

Such an investigation, she said, would exonerate her. She released an internal audit report dated June 14 that cleared her of charges that she improperly awarded two lottery contracts and found no violation for purchasing Indiana Pacers tickets to be given to lottery retailers.

Lottery Auditor Brian Slavens, however, also issued a Feb. 24 memo to Schneider, which she released, saying she had violated state law by paying claims to winners in the discontinued Hoosier Millionaire game for several weeks after the cut-off date of Dec. 21.

The complaint purportedly sent to the inspector general, and circulated anonymously to lawmakers and others, also accused her of doing political work on state time. Schneider denied that, though she said she had spent $5,000 of lottery funds to help sponsor Sen. Richard Lugar's Excellence in Public Service luncheon for Republican women in February. She said she did so to promote the lottery, but that Gov. Mitch Daniels, who spoke at that luncheon, afterward told her that was inappropriate.

Inspector General David Thomas said he cannot discuss any investigation. He said that, in general, filing a complaint does not mean an investigation will ensue beyond an initial review.

Schneider has come under fire since taking over at the lottery in 2005. Two lawsuits are pending in U.S. District Court in Indianapolis, one challenging her treatment of a current employee and one challenging the firings of several employees.

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