Monday, December 13, 2010

The Blue Book Formula, origins of the Calvin Cycle : PRF's Munster Plains and Lugar's Connections to Chicago Heights Organized Crime

This post supplements the Calvin Cycle Website

Forewarning: MacLauchlan Murder

"It's true that Mr. Grotke and OIG counsel acted with IDR administrators for Judge Sharp to abbreviate the PX 45 tape in their ongoing attempt to get you terminated by the Purdue trustees. You should know that Senator Lugar's connections by his Chief-of-Staff Mitch Daniels to Chicago Heights took care of the GAO review, committed or not." November 3, 1989, Bruce Umminger, NSF Division Director (Cellular Biosciences), premonished, first in a telephone call and, then, by letter in response to Fong's inquiry, the MacLauchlan murder upon State-Director Luse's (Lugar) commitment of a GAO review of the $48,903.81 paid to revenue and OIG officers in furtherance of the Calvin cycle.
The Calvin cycle originated from Purdue's collaboration with MIT on installing the Blue-Book formula for federal re-imbursements paid to university foundations for federally funded research grants and loan contracts. 

In the 1950's Purdue trustees initiated an ambitious program to use federal re-imbursement moneys paid to Purdue Research Foundation from PCDF's (Purdue-Calumet Development Foundation) multi-million dollar East Chicago Loan and Grant Contract to invest in the Munster Plains development (the Lawler tract). 

On Oct. 30, 1989, upon a report by Don MacLauchlan of Judge Allen Sharp's abbreviation of the PX 45 tape to take matter from it, State Director Keith Luse (Lugar) committed a GAO review of Posner's simple plan. MacLauchlan, who was vice-president of Carbon Reduction, sponsor for DCB 8822928, had personal knowledge of that plan.


By that plan, Posner withdrew from Treasury Woodmar Realty Company's surplus funds ("the $48,903.81").  He arranged to have PEFCU (Purdue Employees Federal Credit Union) transfer the funds to NSF Deputy Director George Pimentel for redistribution to revenue officers and NSF employees (collectively, the Woodmar recipients).  Posner then issued The Two Posner Orders to prevent Woodmar successors-in-interest and Fong from claiming for the funds.  Meanwhile, the Woodmar recipients maintained Calvin's claim of the carbon cycle in photosynthesis, contrary to Calvin et al's published findings in their original papers.

On Nov. 3, 1989, Umminger forewarned of Don MacLauchlan's murder, naming Lugar's "connections to Chicago Heights." On Dec. 4, 1989, MacLauchlan was murdered.  On Nov. 12, 2010, NSF General Counsel Lawrence Rudolph communicated to Fong corroboration of Senator Lugar's East Chicago-Chicago Heights organized crime connections, the proximate cause for that murder.

Senator Richard Lugar
Lugar's Organized Crime Connections

Senator Lugar's connections by Mitch Daniels to Chicago Heights organized crime are as follows an integral part of Posner's simple plan in furthering the Calvin cycle. 

In 1951, Purdue board officers, at the suggestion of Purdue trustee Guy Wilson from Kokomo, acquired 713-acres land in Munster, Ind. ("the Lawler tract") with Woodmar's cash assets supplemented by the research costs paid by the Federal government to PRF totalling $150,000. See, Trustees' Deed dated June 29, 1951, duly entered for taxation on July 6, 1951. In 1955, Purdue board officers formed the PCDF (Purdue-Calumet Development Foundation), Beering I, in East Chicago to promote the Calvin cycle and sale of the Lawler tract. See, R.B. Stewart and Purdue University, Ruth W. Freehafer, Purdue University Press, 1983, at pp. 175-76. Purdue trustees president Don Powers formed the Munster Development Trust (MDT) to purchase the Lawler acreage at an average cost of $3,610.87 per acre from PRF, which netted a total profit of $2,366,888. Using the average resal value of this land in 1984 at about $80,000 per acre, the Purdue board officers and their business associates netted $46,339,612 for the entire package, all of which went to their personal coffers.

Donald S. Powers
Purdue board officers' personal profits converted from the Federal funds were laundered by Lafayette National Bank (LNB), which was controlled by Branigin family interests and those of Purdue board treasurer Burr Swazey and his son, LNB chairman of the board Burr Swezey Jr., and the Maercantile National Bank (MNB), which was controlled by Powers as the chairman of its executive committee.

The laundering of the Branigins' real estate profits by LNB and MNB was done through Purdue board officers' connections to the crime syndicate in Chicago Heights, on the one hand, and to the Indiana Statehouse, on the other. A principal player was Lake GOP chairman Joseph Kotso, who supported Otis Bowen in his 1972 and 1976 campaigns for Governor, and gave the oath of office to Bowen as Governor in 1973.

The Kotso-Lugar-Powers alliance was strengthened by Powers' contributions to Lugar's Senatorial campaign with money from the Purdue development in Munster financed by Federal reimbursement of indirect costs paid to PRF using the additional funds raised by PRF's establishment of the Calvin cycle in Purdue trustees' formation of the PCDF. In 1975, Governor Bowen appointed Powers to the Purdue board. In 1979, Powers became a director of PRF. In 1981, Powers was elevated to presidency of the Purdue board. Powers' redistribution of the profits from the PRF-Lawler development involved Kotso, Bowen and Lugar as partners.

Senator Lugar first met Powers through Bowen and Kotso. Lugar in his intial campaign for the Senate was indebted to Kotso, who was able to obtain the Lake County votes through his connections to known mobsters such as Frank Rizzo and Sonny Peterson and to the crime syndicate in Chicago Heights, whose principal concern was funneling of money to elect candidates favorable to mob-controlled businesses in Lake County. Kotso was an investigator with the Alcoholic Beverage Commission ("ABC"). He operated Variety Amusements with Frank Rizzo and sold pin ball and vending machines to bars. In 1970, he closed down a bar fronting for gambling activity. In 1971, he unlawfully obtained sales tax and license information from David Colosimo of the Lake County State Revenue Office, and was dismissed by Governor Witcomb from his ABC position. Kotso's father-in-law operated a trucking business that transported pin ball machines for Variety Amusement.

Lugar's election to the Senate was accomplished, in part at least, as follows. Kotso bused poor relief tenants, some of whom from 430 West Chicago Avenue, East Chicago, an unkempt rooming house build in 1910. Prior to the vote for Lugar, poor relief tenants were bused to Sonny Peterson's house where they were paid $50 each. After having voted for Lugar, they were again bused to Peterson's house for payment of another $50 per person. Lugar's connnection through Kotso to the crime syndicate in Chicago Heights is verified by the Affidavit of Owen W. Crumpacker filed with the Indiana Supreme Court on Nov. 25, 1992. Crumpacker's intimate knowledge of Lugar's mob connections through Kotso in the politiucal circles in Lake County was obtained by his personal contacts as follows. In 1975 Thomas P. Gensel was campaign manager for Les Meyers' candidacy for mayor of Hammond. In the 1978 general election, Gensel was General Chairman for GOP nominee Owen W. Crumpacker's campaign for Congress from the First Congressional District of Indiana. In 1978 the crime syndicate in Chicago Heights passed $100,000 to Les Meyers through Kotso to elect Meyers and re-elect Lugar as mayor for Hammond and U.S. Senator, respectively.