50 years ago all State employees in ohio who were political appointees were requried to donate 10 percent of their paycheck to the Ohio Democratic party when a Democrat was governor.
Today the corruption is less open but no less frequent. Today employees are forced to donate in less provable ways. Fake employees have been a tried and true method since Tammny Hall ran New York.
What this more likely tells you is that this is one Democrat who has crossed another more powerful Democrat.
Corruption in Democratic administrations of Cities, States and the Nation are the rule ... not the exception. When one is caught and punished, it is usually because the person caught ticked off a powerful Democrat. Every once in a while higher ups teach lower level Democrats a lesson about who really is boss. That may be the case in this scandal.
East Chicago Mayor-for-life Bob Pastrick runs the NW Indiana machine with an iron fist. He comes from the Daley (the daddy) school of politics. Knowing how stupid Katie Hall is, I wouldn't be surprised if she crossed Pastrick somewhere.