TIMES STAFF REPORT

HAMMOND | For the third time in the case, three politically connected figures pleaded not guilty Friday to allegations they bilked taxpayers and a Gary nonprofit agency by secretly profiting from a real estate deal.

County Councilman Will Smith Jr., Gary attorney Willie Harris, and former Lake County tax collector Roosevelt Powell pleaded not guilty Friday to the second amended indictment involving the same scheme.

Prosecutors say the three men conspired to sell two buildings to the Gary Urban Enterprise Association in October 2001 for a hefty profit and then used their influence in the organization to divert part of the profits from the sale.

Prosecutors allege the men convinced a judge to lower outstanding tax bills on one of the buildings by $45,000, just before they secretly earned a combined $150,000 from the sale.