EVANSVILLE, Ind. — Two people are sentenced to pay thousands and one faces jail time after orchestrating a kickback scheme with funds meant to remodel a homeless shelter and develop a food pantry.
The Pigeon Township Trustee’s Office, located in Vanderburgh County, Indiana, is responsible for providing emergency financial assistance to residents in need, including help with rent, utilities, and prescriptions.
52-year-old Mariama Wilson was the elected Pigeon Township Trustee.
51-year-old William Payne worked in the Trustee’s Office as the Director of Community Relations and Shelter Coordinator.
According to court documents, in February 2020, Wilson and Payne, orchestrated a kickback scheme with 34-year-old Terrance Hardiman and his company, Hardiman Construction LLC.
The scheme involved inflating invoices for remodeling a homeless shelter and developing a food pantry.
Wilson and Payne approved inflated invoices submitted by Hardiman, who then paid them thousands of dollars in kickbacks, according to the release.
According to an indictment, all three visited the homeless shelter and food pantry together and during those visits they identified what projects needed to be completed, how much they would cost and how much Hardiman should inflate those costs to cover the kickbacks to Wilson and Payne.
The Department of Justice says Hardiman would deposit checks from the Trustee’s Office, withdraw the cash, and hand-deliver it to Wilson or Payne in envelopes. The fraudulent invoices were inflated by $1,000 to $2,000 per project, with Wilson and Payne pocketing the excess funds.
In total, between February 11, 2020, and May 16, 2022, the Trustee’s Office paid Hardiman approximately $215,371 for the homeless shelter and food pantry projects.
As a result of the kickback scheme, Wilson and Payne received approximately $38,000 in total, or around $19,000 each.
“Large or small, kickback schemes like the one carried out by Ms. Wilson and the other defendants damage public’s confidence in government,” U.S. Attorney for the Southern District of Indiana Zachary A. Myers said. “Township officials owe their constituents the same duty of honesty and integrity they have the right to expect from public servants at every level. This prosecution should send a message to all bad actors who seek to line their pockets at the expense of taxpayers.
Wilson was sentenced to three years of probation after pleading guilty to one count of conspiracy to commit wire fraud. She resigned from her position as Trustee in June 2023, shortly after being charged.
Hardiman was previously sentenced to six months in federal prison, followed by two years of supervised release, after pleading guilty to money laundering and conspiracy to commit wire fraud.
They are both ordered to pay $38,000 in restitution, to be split among them.
“I’m proud that we have honest individuals willing to report corruption when they see it, knowing that silence in the face of misconduct is not an option,” Vanderburgh County Sheriff Noah Robinson said. “The crimes committed by these officials are a slap in the face to the community in which we live. This corrupt behavior runs counter to the oath they took, and certainly not what was promised to this community.”
Payne is scheduled to enter a plea and be sentenced in January 2025.
