LOUISVILLE, Ky. — An Indiana State Board of Accounts (SBOA) audit determined former Clark County Sheriff Jamey Noel, who is facing 25 felonies, must pay back over $900,000 stemming from inappropriate use of the jail commissary fund.
The SBOA reviewed Noel's use of the account from Jan 1, 2015 to Dec. 31, 2022, spanning Noel's two terms as sheriff. The audit, which was obtained Friday by WHAS11, found Noel misused funds and personally benefitted to the tune of $918,416.53.
The report details several instances of Noel's automobile selling and trading scheme, trading sheriff's department property for services performed on personal property, and even buying a 75-inch television with jail funds that turned up inside his home.
Noel has been under investigation by Indiana State Police since June 2023. He has been charged with 25 felonies, including theft, tax evasion, corrupt business practices, ghost employment and official misconduct.
His wife, Misty Noel, faces five counts of theft and five counts of tax evasion. Both have pleaded not guilty.
State Board of Accounts findings
The SBOA reviewed records for each year of Noel's tenure, except 2018 because current officials advised that box of information was missing. State auditors found the commissary was used to purchase equipment that is no longer in the sheriff's office's inventory, and current officials said they had no recollection of utilizing it.
There were line item receipts for $101,472 worth of "questionable" expenses. Among the items are $22,000 for two AED defibrillators, $2,700 for six recliner chairs, $959 for three Milwaukee cordless drills, and $12,000 for a tool box and 88-inch work bench.
The audit also found $356,842.39 worth of "unsupported payments" where no receipts, invoices or contracts were found to determine the validity of the transactions.
The investigation examined the relationship between the Clark County sheriff's department and Hughbanks Enterprises LLC, which is ran by a former sheriff's department employee. Consulting checks began going from the jail commissary funds to the LLC in March 2015.
The sheriff's office sent $262,567 to Hughbanks Enterprises up until the end of 2022. The audit said there was no official contract for this "consulting work", but rather "non-descript invoices." The SBOA is asking Noel and Hughbanks, the owner of the LLC to repay this money either separately or jointly.
The report contains several instances of automobile transactions called into question.
For example, in May 2017, a 2008 Chevrolet Tahoe was purchased and then titled in June to the sheriff's department. It was purchased for $1,705 using Noel's jail commissary credit card.
BMV records show the vehicle was sold in August 2022 for $1,500 to an individual who told ISP the Tahoe was given to him in exchange for HVAC services performed at a Noel property.
Jail commissary records do not indicate any funds paid to or received by the sheriff's department regarding the sale of the vehicle.
In another case, Noel reportedly purchased a 2021 Ram cargo van by trading in a Dodge Ram 1500 owned by the sheriff's office at the time. He received $10,000 for the trade.
A search of jail commissary fund records found no funds paid to or received by the sheriff's department.
According to the report, Noel purchased a 75-inch TV using $1,398.59 in jail funds. That TV later turned up inside his home during a search warrant still in a box marked "sheriff" and the price tag still attached.
In total, the SBOA is requesting Noel and some of his associates repay $918,416.53. Indiana State Police and the SBOA could not immediately comment on how this request will be enforced.
Clark County Court Administrator Tom Lowe said in theory, it could be enforced as restitution but only after a guilty conviction or plea deal. The eight-year audit is not currently in the court record as evidence.
Assistant Chief for the Clark County Sheriff's Office Col. Mark Grube sent a statement about the report:
"Our agency is aware of its findings, we will have a formal response in writing to the SBOA within 10 days as outlined in the report. Over the past year we have taken corrective action to prevent issues like this in the future. We have hired a third party to oversee all financial reports and transactions within the office. Sheriff Maples and his staff are working diligently to restore the communities trust in the agency. You will find more in our official response," Grube said over email.
Grube also said they worked with state investigators and the SBOA in compiling this audit.
Case background
Noel's vast automobile collection has been under scrutiny by investigators since the beginning of the investigation.
According to court documents, 133 vehicles are registered to the Utica Township Volunteer Fire Department and New Chapel EMS. A review of those vehicles showed several were "inconsistent" with a not-for-profit fire department and EMS business.
Among those 24 vehicles are several Cadillacs, Chevrolet Camaros and Chevrolet Corvettes. Last month, Hearon filed additional probable cause affidavits related to Jamey's vehicles.
Jamey was in charge of the UTVFA until he was ousted last month.
In December, investigators accused Jamey of unlawfully purchasing a Cessna airplane.
The investigation also uncovered Jamey fathered a child with former Clark County Councilwoman Brittney Ferree and paid child support payments with UTVFA funds. In court documents, ISP Lt. Jeffrey Hearon stated he discovered nearly $5 million in personal charges made on UTVFA business credit cards.
Last week, court documents revealed the investigation is also focusing on similar credit card activity by Kasey Noel, Jamey and Misty's daughter.
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