Former Vigo Co. School Corp. facilities director guilty of fraud

By Lucy Perry
Indiana Central News

INDIANAPOLIS – Following a three-day trial, a former Vigo County School Corp. facilities director was found guilty in federal court in Indianapolis on fraud, bribery and false statement charges related to a recent kickback scheme amounting to more than $110,000.

United States Attorney Josh Minkler announced the verdict today regarding the former Vigo County School Corporation official, Franklin V. Fennell, 49, of Terre Haute,  following this week's testimony before U.S. District Judge Jane Magnus-Stinson.

The case was investigated by the Federal Bureau of Investigation. While a sentencing date has not been set at this time, Fennell could face up to 20 years’ imprisonment. 

In October, Fennell’s co-defendant, a former Vigo County Sheriff's deputy and school corp. adviser, Frank Shahadey, 61, was sentenced to 16 months’ imprisonment --- after pleading guilty to wire fraud and theft charges based on his involvement in this scheme, according to the press release. 

Minkler notes that the case is an example of holding those serving the public accountable for wrongdoing.

“Public officials are supposed to serve the public, not the other way around,” said Minkler in a press release. “When greed becomes more important than serving the public, there are consequences and my office will hold offenders accountable.”

The corruption in the school corportation continued from April 2014 through October 2016.

Fennell and co-defendant, Shahadey, reportedly instructed a Terre Haute area businessman (Mike Pick) to submit false and fraudulent invoices for work performed for the VCSC by either inflating the cost of the work or seeking payment for work that was either not performed, or was done by another business.
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It is estimated the duo stole more than $100,000 from the Vigo County taxpayers. 

“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,” Public Information Officer Tim Horty explained. 

While serving as facilities director, Fennell's duties included the maintenance and service at all VCSC locations and facilities, including schools. According to the report, Fennell routinely submitted requisitions to the VCSC business office which in turn created purchase orders that were sent to vendors authorizing work. The vendor was to be paid after the work was completed.

“When confronted by special agents of the Federal Bureau of Investigation regarding this fraudulent scheme, Fennell made various false statements in a futile effort to exculpate himself,” Horty said.

W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division stated in the press release that the FBI has zero tolerance for public corruption and considers it a top criminal priority. 

"We are dedicated to eradicating public corruption at all levels of government and our agents will continue to work diligently to pursue those public officials whose greed erodes the confidence and trust of taxpayers," Abbott said.

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In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges.  This prosecution sentencing demonstrates the office’s firm commitment to detect and prosecute matters involving public corruption, (See United States Attorney’s Office, Southern District of Indiana Strategic Plan, Section 5.3)