In the small town of Lake Station, Ind., the news that the mayor, his wife and stepdaughter have been indicted on federal corruption charges this week came as little surprise. Residents in Lake Station, one of many working-class towns that fringe the northwest Indiana industrial centers of Gary and Hammond, have seen FBI agents leaving the town hall several times in recent years. On Thursday, Keith Soderquist and his wife and personal secretary, Deborah, were in federal court in Hammond to face charges of wire fraud and filing false tax returns, after allegedly using money from Soderquist’s campaign fund and...