Criminal Probe Into Misuse Of Funds Intended For Struggling Veterans

Thursday, May 16, 2019 at 8:39 AM

By Mike Perleberg @mikedup84

The Marion County Prosecutor's Office is investigating the Indiana Department of Veterans' Affairs.

(Indianapolis, Ind.) - The Marion County Prosecutor’s Office is opening an investigation into the alleged improper use of funds within the Indiana Department of Veterans’ Affairs.

The prosecutor’s office confirmed the investigation Tuesday, months after reports by The Indianapolis Star and WRTV-TV detailed how some of the department’s employees were awarded grants that were intended for Hoosier veterans going through tough times.

The reports found that although some struggling veterans waited months or were denied assistance from the program, some department employees received assistance more quickly and sometimes in excess of the maximum amount.

Indiana Inspector General Lori Torres determined last month there was not sufficient evidence to warrant charges in the case. The Star reported that Torres said the Marion County Prosecutor’s Office had reviewed her office’s investigation.

The prosecutor’s chief of staff told the newspaper that the office never formally declined prosecution from the “informal conversations” with the OIG.

State Rep. and Assistant Minority Leader in the Indiana House of Representatives, Karlee Macer (D-Speedway), on Wednesday likened the OIG’s inability to find evidence warranting criminal charges to the fox watching the hen house.

“Unfortunately, I expect the additional investigation to further highlight the severe lack of oversight from our Governor regarding the repeated abuse of funds that could have gone to assist our veterans in their time of need,” Macer said.

The Department of Veterans’ Affairs former director, James Brown, resigned in December following the reports on administration of the Military Family Relief Fund. He denied any wrongdoing.

Southeastern Indiana State Rep. Randy Frye authored a new law signed just last month improving oversight of the relief fund. Under the new law, department employees have to submit their requests for assistance from the fund to the Indiana Veteran’s Affairs Commission, which consists of seven members appointed by the governor. Decisions on approving or denying applications would be made within 60 days.

The new law going into effect on July 1 also caps the Military Family Relief Fund benefits at $2,500. The amount could be higher in rare cases with approval from the commission.

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