Fennell sentenced after jury returns guilty verdict on all counts

By Lucy Perry
Indiana Central News

INDIANAPOLIS –  A Terre Haute man was sentenced to 24 months' imprisonment in federal court today following his involvement in a kickback scheme while working for the the Vigo County School Corp.

United States Attorney Josh Minkler announced today that a former VCSC official, Franklin V. Fennell, 49,  must also pay restitution in the amount of $119,600. He was sentenced by U. S. District Judge Jane Magnus-Stinson after a jury returned a verdict of guilty on all counts of:

• Fraud
• Bribery
• Making false statements to federal agents at a jury trial in December, 2017

ICN file photo

Fennell was the facilities director for the school district. His duties included the maintenance and service at all VCSC locations and facilities, including schools, according to Southern District of Indiana Public Information Officer Tim Horty.

"Fennell routinely submitted requisitions to the VCSC business office which in turn created purchase orders that were sent to vendors authorizing work. The vendor would then be paid after the work was completed," he said.

The case was investigated by the Federal Bureau of Investigation, which revealed that Fennell and co-defendant, Frank Shahadey instructed a Terre Haute area businessman to submit false and fraudulent invoices for work performed for the VCSC from April 2014 through October 2016.

The cost for a "project" ultimately was inflated or payement sought for work was found either not completed or done by another business.

"Once paid by the VCSC based on the false and fraudulent invoices, the businessman kicked back a portion of the ill-gotten gains to Fennell and Shahadey and retained a portion for his personal benefit ---totaling more than $110,000," Horty explained.

Shahadey was sentenced to 16 months’ imprisonment in October 2017, after pleading guilty to wire fraud and theft charges for his involvement in the kickback scheme.

​“The citizens of Vigo County deserve better from their public officials,” said Minkler.  “Public service does not mean helping yourself to public funds. When greed becomes more important than serving the public, there are consequences and my office will hold offenders accountable.”

​
​See related story