Three former Bartholomew County officials are among 15 individuals charged with federal or state corruption charges relating to their work in public service or governmental positions.
The misappropriations cited in the charges were uncovered by the Indiana State Board of Accounts during financial audits and special investigations, the U.S. Department of Justice announced Thursday. The State Board of Accounts is civilly charging the individuals for repayment of funds based on misappropriations identified in each case.
Federal cases were filed against Clint Madden, 51, of Columbus, former Wayne Township trustee and treasurer for the Jonesville Fire Department; and Mathew Mathis, 47, of Columbus, former Hope Volunteer Fire Department treasurer, according to U.S. Attorney Josh Minkler for the Southern District of Indiana.
A state case was filed against David Buzzard, 50, of Columbus, former Rock Creek Township trustee, according to the report.
In total, reimbursement being sought from the three individuals is $311,809.
Madden case
Madden, who served as Wayne Township Trustee and the Jonesville Volunteer Fire Department treasurer, is alleged to owe $143,920 to the township and $88,898 to the fire department for misappropriation of funds, the special investigation report states. He was the fire department treasurer from Jan. 1, 2012 to Dec. 31, 2014 and then from Sept. 13, 2015 to Aug. 21, 2016, before he was removed by the fire department on Aug. 21, 2016. He was Wayne Township Trustee from Jan. 1, 2011 to Oct. 3, 2016, the date he submitted his resignation.
Auditors noted that while serving as township trustee, Madden was also fire department treasurer, and was responsible for depositing all township funds and checks, including contract payments to the fire department, where he was also in charge of finances.
The fire department began questioning withdrawals made against its banking account earlier in 2016 by Madden, said Jason Perry, Wayne Township Fire and Rescue board president, in an earlier interview.
After Madden claimed he had purchased $2,200 worth of items for the department early in year, investigators could not find anything of value that had been purchased, Perry said. After Madden did not provide the fire department board with financial reports for the months of June and July in 2016 — and was absent from board meetings during the summer — the board voted to remove him as treasurer, Perry said.
When Perry and two other fire officials went to the bank in late September 2016 to complete necessary paperwork to remove Madden’s authority over the banking account, they discovered the balance was substantially less than what Madden had reported to them, Perry said. That prompted Perry and two other fire department members to begin tracking down all available financial records.
While reviewing spending records, the internal audit found evidence in September that departmental money had been used for the purchase of navigational equipment, a Jeep, and for auto repairs — none of which was for the department’s use, Perry said. After Madden was asked to explain the spending, he submitted his resignation as trustee.
When Madden resigned, the township computer was removed, preventing the auditors from getting access to the township’s ledger or receipts, disbursements and balances from Jan. 1, 2012 until Madden’s resignation, the report states.
Special investigation reports filed Thursday by the State Board of Accounts show Madden is now accused of financial improprieties involving township and fire department funds, diverting them for his personal use.
In the report, Madden is accused of purchasing and financing a concession trailer for his personal use with township funds. While Madden made some payments on the concession trailer, it was eventually repossessed and the township incurred $10,497 in attorney fees to settle the lawsuit. Madden was requested to reimburse the township $38,497 to settle the lawsuit over the purchase and financing of the trailer with township funds.
Several purchases of vehicles by Madden, including a 2006 Hummer and a 2004 Escalade, were also questioned by auditors. Purchased with township and fire department funds, auditors said neither the township or fire department received titles for the vehicles, and when they were sold, proceeds were not placed in the appropriate accounts as reimbursement.
Undocumented payments totaling $17,050 were also included in the report, including a township check for $1,500 for a mower that was not located on township premises, and a check for $4,000 that Indiana State Police said was not for two trailers as indicated. The special investigation states an individual was asked to cash the trailers check for Madden and provide Madden the cash.
Three township checks totaling $2,400 were issued to another individual, issued for work on a light tower and for “Ricks, Rescue.” The individual told investigators he performed work on fire department vehicles and created the invoices at Madden’s request, receiving $1,950 that he and Madden used to purchase a truck for the individual’s use.
Three checks were issued to an individual for mowing in the amounts of $3,500, $1,750 and $1,750, but no contract or documentation supported the payments, the report states. On June 15, 2016, a check for $850 was issued to individual, but when the individual was contacted he said he knew nothing about it.
Other undocumented disbursements included payments for a vacation cruise at $3,831.69, a satellite television at $941.87, electronic, home and office supply stores at $5,446.32 and personal business at $1,918, the reports states. Fuel card purchases and personal vehicle repairs for the Madden family’s personal vehicles were also cited in the report, including paying for 3,911 gallons of fuel, some from out-of-state gas stations.
Township money was also used to pay for personal vehicle repairs, including $3,244 on a 2002 Chevrolet Avalanche owned by Clint and Heather Madden. In the fire department audit report, auditors said Madden paid $300 in monthly car payments for the Avalanche from fire department funds beginning in 2012, including a $7,083 payment in 2014. A bank debit on the fire department account for $300 was made Feb. 16, 2016 for a different car dealership to purchase a 2006 Jeep Wrangler by Clint and Heather Madden, the special investigation states.
There were also payments being made from township funds for rent for a number of individuals who did not have township assistance documentation on file, the reports states. In one, the check copy said it was for rent for an assistance recipient, but the $595.90 payment actually went to repair a radiator on a 1998 Chrysler van owned by Madden.
Three undocumented disbursements from fire department funds totaling $1,900 were made to Madden in 2012 and 2013 with Madden as both the check writer and endorser but no documentation was provided, the investigation states. Cash withdrawals from ATMs and over-the-counter totaling $4,305 from the fire department were also made by Madden from 2012 through 2016 without supporting documentation, the investigation states.
On three occasions, fire department money was transferred to Madden’s personal PayPal account, for $5,697, according to the investigation. Other undocumented disbursements from fire department accounts were $6,550 to electronic, home and office supply stores, $729 to the Home Shopping Network and $426 to Amazon, the investigation states.
Mathis case
Mathis, who served as the Hope Volunteer Fire Department treasurer beginning in December 2014, is accused of owing $48,252 for a variety of financial improprieties, including issuing checks to himself without supporting documentation, $31,905 in undocumented cash withdrawals and failure to deposit money from fundraisers and other events into Hope fire department accounts.
Fire department officials had turned over financial concerns they had to the Indiana State Police, who asked for a state audit. Hope Fire Department officers said late last year that Mathis was on suspension.
Five checks totaling $2,600 were issued to Mathis from fire department funds in 2015 and 2016, all signed by him without any documentation, the investigation states. Memo lines on the checks state “clothing allowance” and “cash,” although investigators said Mathis and all other firefighters had received their clothing allowance prior to the checks being issued.
The investigation report says a cash withdrawal of $1,800 was made on Sept. 25, 2015 from the fire department’s savings account, allegedly to supply a cash change fund for the department’s annual fish fry. However, there was no deposit of the $1,800 back into the accounts after the fish fry, investigators said.
Also, reports state that the fire department collected $7,081 from the 2015 fish fry before expenses, but the proceeds were not deposited in fire department bank accounts after the event.
Buzzard case
The state has filed a case against Buzzard, who served as Rock Creek Township trustee. Buzzard is accused of overpaying himself and his spouse Jacqueline by $27,541, according to investigators. This case is pending in Bartholomew County with special prosecutor AmyMarie Travis from Jackson County handling the matter.
From the beginning of 2012 through late summer of 2016, David and Jacqueline Buzzard should have been paid no more than a combined $26,000, the State Board of Accounts audit states. However, the Buzzards actually received $54,141 during that period, according to an affidavit from investigators. The state originally sought to have $43,564.16 reimbursed, but records show David Buzzard paid back $12,825 to the township shortly before submitting his resignation Sept. 12, 2016, leaving a balance of $30,739.
The report states on May 3, 2016, Buzzard wrote and cashed a $1,000 counter check made payable to cash but no documentation was provided for the validity of the payment. Disbursements of $1,511 for mileage, state income tax, office supplies, printer ink and purchases at OfficeMax, Marsh and Bartholomew County REMC did not have supporting documentation, the report states.
Township funds were used to pay the full cost of a wireless home phone line and internet access for the Buzzard home from 2012 to 2016, totaling $4,389.57, the report states. The Buzzards had the trustee’s office in their home, the report states, but there was no appropriation in the township budget for the telephone expenses, according to the report.
