CHARGES FILED AGAINST FSSA EMPLOYEES
One of three employees of the Indiana Family and Social Services Administration has pled guilty to charges stemming from her role in embezzling $200,000 from a program that provides temporary public assistance to needy families. The case was submitted to Brizzi by the State Inspector General's Office.
Mary Miracle, who spent 19 years with the agency, had pled guilty to conspiracy to commit welfare fraud, official misconduct and currupt business influence. When she is sentenced May 30, she is facing a six year sentence, with a cap of four years on any prison time. She must pay restitution of $25,000 to the FSSA, and surrender her state reitrement account. She must also perform 160 hours of community service work.
Geraldine Harper, a 26-year FSSA employee, is scheduled to go to trial May 4 on seven counts, including theft, conspiracy to commit theft, welfare fraud, official misconduct and corrupt business influence. Stephanie Russell is charged with theft, conspiracy to commit theft, conspiracy to commit welfare fraud and welfare fraud.
"Instead of the common good," said Brizzi, "these two women used their expertise to satisfy their individual greed. You and I and all of the taxpayers of Indiana are victims in this case, because the money taken out of our paychecks—supposedly going to those who have nothing—went to those who wanted everything."
According to the probable cause affidavit, Harper and Miracle worked in an area of FSSA which disbursed money from Temporary Assistance to Needy Families (TANF) funds. Families who qualified for the temporary public assistance from TANF would receive in the mail an Electronic Benefit Transaction (EBT) card, with a credited amount based upon their needs. The card could be used similar to a debit card at ATM's or at stores to receive both cash and food stamps, up to a set amount, from $500 to $1,500 a month. The card would be "refilled" each month, up to a maximum of six months. At that time, the recipient family's need is reevaluated. In rare instances, if the family ran out of money before a month was over, they could request auxiliary funds be added to the card to tide them over.
Brizzi explained, "Harper and Miracle would create fictitious accounts and mail EBT cards to themselves or to family or friends. They would then take the cards to ATM's and drain all of the cash and use it for themselves. They would also sell the value of the food stamps contained in the cards on the black market, so they were making money two ways. They would then "refill" the card each month. We estimate that they made $100,000 in TANF funds and a like amount in food stamps. This had been going on since at least 2003."
Harper would give some of the fake cards to Russell, who would sell the cards and split the proceeds with Harper.
He added that they might have been able to continue the scheme, but for one thing. "Like a Greek tragedy, greed became their downfall. They began adding auxiliary funds to all of the outstanding cards, maxing them out. This caught the eye of a supervisor at FSSA, who became suspicious of the high number of accounts receiving the extra money. Se starting checking and discovered that the cards had been obtained with fake Social Security numbers and that the addresses where the cards were sent had been changed. The Inspector General's Office was eventually notified, and our office joined in the investigation."
COMMUNITY CORRECTIONS SUPERVISOR CHARGED
Prosecutor Brizzi has filed charges against a supervisor with Marion County Community Corrections for soliciting and/or accepting bribes from persons on home detention.
Webster Campbell, Jr., faces five counts of bribery (C felony), four counts of official misconduct (A misdemeanor) and one count of corrupt business influence (C felony). According to the probable cause affidavit, Campbell took approximately $2,000 from five detainees from October 2004 to February 2005.
In his supervisory position with the Community Corrections, Campbell had not legitimate reason to contact any home detainees.
Campbell approached two detainees on separate occasions and told them for a bribe he would see to it that they could be away from their designated location. The two paid him cash. They spoke to him by telephone several times per week to make sure he took care of their scheduling.
He switched tactics with three other detainees. Identifying himself as "Mr. Web," the head supervisor of Home Detention and Day Reporting, Campbell told them that they were behind in their payments and that they were in danger of violating their home detention. The men gave Campbell cash, thinking that he would credit their accounts. However, he never gave them a receipt and instead, pocketed the money.
If convicted on all counts, Campbell faces as many as 52 years in prison.
THE FAMILY AND SOCIAL SERVICES ADMINISTRATION
The investigation into charges of mismanagement and diversion of funds in the state Family and Social Services Administration (FSSA) is nearly completed, with the sentencing of two of the principals.
Matthew Raibley, the former Director of the Indiana Manpower and Comprehensive Training Program (IMPACT) for FSSA, received a six-year sentence. He had pled guilty to one count in each of three cases in which he schemed with others to steal more than $700,000 from the State of Indiana. Three of the years will be spent in prison, the other three on probation. He must pay restitution of $16,500 to the State of Indiana. That's how much he personally profited one of the schemes. He must also perform 300 hours of community service work.
Raibley pled guilty to one count from each of the cases: corrupt business influence, conspiracy to commit theft and forgery.
The first indictment from a Marion County grand jury charged that Raibley conspired with three officers of Tower LLC, a private job-training company, to bilk FSSA out of more than $445,000. Raibley allegedly authorized payments without contracts to Tower. Tower paid Raibley's private consulting firm $16,500 in the deal. Tower officials allegedly lined up businesses to participate in welfare-to-work training sessions. However, much of the training was never provided. A judge found Tower President Kevin Hightower guilty of several counts, and sentenced him to two years in prison, plus two years' probation. William Gutierrez, Tower's vice president, pled guilty to charges of currupt business influence and conspiracy to commit bribery, and received a five-year sentence, with two of the years spent in prison and the remainder on probation.
The second indictment charged Raibley and Barbara Wylie with hatching a scheme to steal an additional $70,000 from the FSSA. A judge found Wyllie guilty of theft and official misconduct for her role in the scheme. Wylie submitted claims for a training curriculum that she said she developed for IMPACT. However, no curriculum was ever provided. Raibley allegedly authorized the state to pay Wylie, even though he knew she never developed the curriculum. Wylie received 18 months' probation.
The third indictment charged that Raibley forged claim vouchers and invoices in order to pay Covansys Corporation, an information technology company, prior to the execution of a formal contract with the State of Indiana. Covansys provided FSSA with hardware and software before formal execution of the contract. The company acknowledged violations of purchasing rules, policies and regulation of the State Department of Administration. It has reimbursed the State of Indiana more than $200,000, ore more than double the profit made by the corporation through those violations.
A judge placed Mary Cox on 1 1/2 years' probation following her conviction on five counts of conflict of interest for activities in which she while employed as a consultant for IMPACT. At the same time, she also served as an independent contractor with Advertising Specialists. She arranged for Advertising Specialists to sell merchandise to the IMPACT program. In return, she received a commission on the sales. Cox must perform 80 hours of community service work and repay $2,729.20, twice the amount of commission that she made on the sales, to the state.
Kathleen Crumpton, a former FSSA employee, was sentenced to two years in Community Corrections and two years' probation. She and nine others were accused of stealing more than $91,000 in child support money. Crumpton is accused of using her authority to redirect child support checks. She was supposed to review undistributed child support checks that had been returned to the FSSA and redirecting the checks to the correct addresses. However, she diverted the checks to bogus addresses, where they were collected, falsely endorsed and cashed. Of the others charged, six have pled guilty and have been sentenced and the remaining three are slated to plead guilty.
ALLEGED NEGLECT AND A DEATH
The Marion County Prosecutor's Office has asked the Indiana Attorney General to appeal the ruling by the Indiana Court of Appeals overturning the conviction of Deniese Moore.
Marion Superior Criminal Court Judge Robert Altice sentenced Deniese Moore to 18 months' probation for her conviction on a charge of obstruction of justice. Moore is a former caseworker for the Indiana Family and Social Services Agency.
Moore submitted a home study and other adoption papers to Marion County Superior Probate Court with false statements in the adoption of Anthony and Latoya Bars by L. B. and Latricia Bars. According to a grand jury indictment, The documents said there was no criminal record for L. B. Bars, when, in fact, L. B. Bars did have a criminal record; and that the Barses had no previous contact with Child Protective Services, when, in fact, the Bars family did have previous contact with Child Protective Services.
Anthony Bars subsequently died in the Barses' care and Latoya was removed from the home. She was malnourished and had been abused.
During her probation, Moore must perform 260 hours of community work service through the Department of Public Works.
FORMER DIRECTOR OF CAMPAIGN COMMITTEE CHARGED WITH THEFT
The former executive director of the Indiana Senate Majority Campaign Committee was found guilty of embezzling nearly $25,000 from the organization. Judge Mark Stoner convicted Bradley Hiller of theft and filing a fraudulent report, both D felonies. He sentenced Hiller to one year in prison and six months on home detention.
Hiller was executive director of the committee from January 2001 through November 2003. The committee is responsible for providing campaign support for Republicans running for State Senator. As executive director, Hiller was responsible for providing fundraising and campaign support for these elections.
"No political party has a monopoly on corruption," said Brizzi. "When it comes to prosecution, there are no Republicans or Democrats, only individuals who need to be held accountable."
According to the probable cause affidavit, suspicions about Hiller's handling of the committee's checkbook arose when he was succeeded by Esther Schneider as executive director in November 2003. She found little supporting documentation for checks written on the account. The committee hired London White Group to perform an audit of their accounts.
According to the audit, 109 of the 490 checks written on the account between January 2000 and January 2004 were payable to Hiller. Investigators found at least eight different occasions where expenditures listed on the committee campaign report with checks written on the organization's checking account. Those checks would be listed on the campaign report as payable to vendors. However, the checking account would show the corresponding check as being may payable to Hiller.
A Marion County Superior Court Judge has issued a summons for Hiller's appearance in court. He is scheduled for an initial hearing February 11 in Marion Superior Criminal Court 9.
OFFICERS CHARGED WITH DISTURBING THE PEACE
Indianapolis Police officer John Guilfoy pled guilty to battery and fellow officer Ryan Clark pled guilty to disorderly conduct in connection with a fight with two men in Broad Ripple.
Marion Superior Court judge Linda Brown sentenced both men to six months' probation. She also ordered that the officers take an anger management assessment and undergo counseling if needed. Brown also ordered Guilfoy to pay $3,000 in restitution.
On April 3, 2003, the pair were off-duty when they fought with two men outside the La Bamba Mexican Restaurant in the 800 block of Broad Ripple Avenue. The offices allegedly made remarks to female friends of the two men. After the women went into the restaurant, Clark and Guilfoy jumped the two men.
PROBLEMS AT THE HOOSIER LOTTERY
Two of three men charged in an alleged scheme to rig a Hoosier Lottery game have pled guilty. Chet Atkins and Daniel Foltz have both pled guilty to a count of theft, and have agreed to testify against their friend, William Foreman, in his case.
Foreman, a former security officer with the lottery, is accused of passing on the location of a winning ticket in the "$2,000,000 Bonus Spectacular" game to Adkins and Foltz. One of the men then went to Otter's Grocery in Cross Plains, Ind., and bought out the store's entire stock of tickets in the game.
Foreman is charged with disclosing confidential information relating to the lottery and theft, which carry a potential prison term of 58 years.
According to court documents, a person unrelated to the investigation told lottery officials that he had purchased a winning ticket to the game, but that he couldn't remember where he bought the ticket. Hoosier Lottery investigator Matthew Hollcraft reconstructed the game with information from the printer of the tickets, enabling him to find the locations of the game's five winning tickets. One of the tickets was in Mishawaka, three were still in the lottery's warehouse, and the other was in Cross Plains.
Foreman passed on the information to Foltz and Adkins. Foltz went to the lottery office to claim the prize. When he said there was a co-winner, he was told that co-winner had to appear in person. Adkins came in the next day and was recognized as Foreman's friend.
The lottery delayed paying the men and required Foreman and chief of security Peter Byrne to take polygraph tests. Byrne passed the test. Foreman refused and resigned, shortly before he would be vested in the state pension. Lottery officials decided to begin the payout.
Brizzi's office was tipped off by a confidential informant who said there was something wrong with the game.
A POLICE OFFICER TURNED SEXUAL ASSAILANT
A judge sent former Indianapolis Police officer David Spahn to home detention for 18 months. Marion Superior Court Judge Mark Stoner also placed Spahn on sex offender probation for another 18 months and ordered that he register as a sex offender.
A jury convicted Spahn of two counts of felony sexual battery in August of this year.
Spahn and another officer went to the 2600 block of East North Street on April 29, 2002, searching for a suspect wanted on a warrant. They entered the home of a woman who was alone with her children. After asking a few questions, both officers left.
Spahn returned in uniform three hours later saying he had a few more questions to ask. He fondled the woman's breasts and touched her sexually.
Spahn resigned from the police department when he was charged.
DID AN OFFICER TURN ROBBER?
Former Marion County Sheriff's Department Reserve Deputy Larry Dalton received a 1 1/2 year prison sentence for his guilty plea to theft. Dalton admitted to conspiring with another individual to rob Jason Reidy. Dalton pulled Reidy over to the side of the road on Sept. 30, 2002. Dalton allegedly handcuffed Reidy and put him in the back of his squad car. He then took $8,900 in cash from Reidy's car, but never filed a police report.
THE PASTOR BECAME GREEDY
East Chicago, Ind., pastor Lee Gilliam is spending four years in Marion County Community Corrections for stealing at least $100,000 from the Build Indiana Fund. The Build Indiana Fund was established by the Indiana General Assembly to funnel lottery proceeds to not-for-profit organizations for projects.
Gilliam received $445,000 from the fund ostensibly to build a women's shelter that was never constructed. Instead, Gilliam used the money to purchase three properties in East Chicago, one of which he converted into apartments. He charged people rent for staying in the apartments. He used another property to set up a grocery store, though he never reported Indiana sales tax proceeds from the store.
Gilliam also spent some of the money on himself and his family, buying a fur coat, leather boots, trips to several areas of the country, a glass pulpit for his church and vehicles for himself and his wife.
As part of a plea agreement, Gilliam had to sell the buildings he purchased, liquidate certificates of deposit and give up the coat and boots. In court, Gilliam admitted to becoming greedy and pocketing the money.
THE SENATOR DIDN'T PAY HIS TAXES
Indiana State Senator Samuel Smith of East Chicago received a one-year suspended sentence following his guilty plea to a count of failure to remit Indiana sales tax. This investigation by the Marion County Prosecutor's Office was an outgrowth of the probe of the Build Indiana Fund.
Smith admitted that he understated the sales generated by a funeral home that he owns on documents filed with the state. As a consequence, he failed to withhold the proper amount of sales tax due.