ANDERSON — John L. Neal and his attorney failed to attend a court-ordered mediation session on July 17, in connection with the civil forfeiture lawsuit against him and his daughters, and the attorney representing the state wants him found in contempt.

“The actions of the defendants ... is without legal justification or excuse and is in direct contravention of the plain language of this court’s orders,” attorney Greg Garrison, who is representing the state in the case, writes in a petition asking that Neal be found in contempt.

Three days before the mediation was to take place, Muncie attorney Donald K. McClellan, who is representing Neal’s daughter, Cheryl Eagan, sent a letter to Garrison saying defense attorneys would need more time to discuss the case with their clients.

“John Neal needs an opportunity to meet with (his attorney) Rick Kammen to discuss the status of his pending criminal case and the IRS lien needs to be finalized and so mediation at this point trying to resolve the forfeiture issues would essentially be a waste of time,” McClellan writes.

Garrison could not be reached for this story, and an assistant in his office previously said it was Garrison’s policy not to comment on the case. Neal’s attorney, Richard Kammen, also could not be reached Thursday.

The state wants to keep more than $1.5 million in cash seized from Neal’s home, another $2 million in various bank accounts and various other property. The state claims Neal, 70, made the money through the large organized gambling ring he is accused of heading in Madison, Delaware and Henry counties. The alleged gambling ring consisted of “Cherry Master”-type video wagering devices placed in area taverns.

In January, Hamilton Superior Court 1 Judge Steven Nation, who is hearing the civil case, ruled that Neal engaged in racketeering and that dozens of “Cherry Master” gaming devices at the center of the illegal gambling investigation were indeed wagering machines. But he stopped short of ordering millions of dollars in cash and property seized be forfeited.

In his order, Nation said that “there remains a question of fact concerning who was responsible for the placement and the supervision of the machines, as well as any and all other property” used in the illegal gambling operation.

It’s unclear what will happen next in the civil case. It’s common for judges to order parties into civil mediation in hope that a settlement can be resolved before a dispute goes to trial.

Anderson attorney John Shanks II, a registered civil mediator for more than a decade who is not involved in the Neal case, said anyone who disobeys a court order — by not showing up for mediation, for example — could be found in contempt of court.

“That’s up to the judge,” Shanks said. “The judge may impose sanctions on him and his attorney. (The judge) has a wide array of options.”

The lawyer said the judge could fine Neal, or possibly order him to jail. Before either of those occurs, however, there would be a hearing where Neal and Kammen could explain the cancellation.

“I can’t imagine someone ordered to mediation not showing up — unless they’re dying,” Shanks said. “It’s showing disrespect to the court. It’s just not a smart move. It puts them in a negative light with the court.”

There is a hearing scheduled in Hamilton Superior Court 1 at 8 a.m. Thursday, Aug. 14, for the parties to discuss several pending motions. At that hearing, Garrison is expected to ask Judge Nation to find Neal in contempt and request the defendants be sanctioned and forced to pay for various attorneys’ fees and costs associated with the cancellation.

Neal was moved from a federal minimum-security prison in Kentucky to a halfway house in Indianapolis on July 1 to finish serving his sentence for violating the terms of federal probation.

The FBI arrested Neal in 1999 on federal charges of operating an illegal video gaming operation and money laundering. He ultimately pleaded guilty the next year and was sentenced to 42 months in federal prison. He was released and placed on federal probation in 2003.

He is expected to be released from federal custody in November, but the former Teamsters Union boss faces 71 felony criminal counts in Madison County related to illegal gambling and money laundering after he was arrested in September 2006.

-----------

What’s next?

John L. Neal’s next appearance in the civil forfeiture case against him is scheduled for 8 a.m. Thursday, Aug. 14, in Hamilton Superior Court 1. In a motion, attorney Greg Garrison asked that Neal, his daughters and their attorneys be found in contempt for failing to attend a mediation session that had been scheduled for July 17.