CLARK COUNTY, Ind. — The ongoing Indiana State Police (ISP) investigation into former Clark County Sheriff Jamey Noel now includes former Scott County Sheriff Kenneth Hughbanks and his wife.
Previous court documents revealed Noel paid Hughbanks over $262,000 for consulting work between March 2015 and October 2022 using Clark County Sheriff's Office jail commissary funds. Documents released Wednesday show investigators believe Hughbanks and his wife, Lyndi Hughbanks, failed to report at least $214,700 of income on their taxes over a five-year span.
These findings were sworn to by ISP Lt. Jeffrey Hearon, the lead investigator on the case, in a probable cause affidavit. Neither Hughbanks' have been charged.
Lyndi is the Scott County Council president and the secretary of Hughbanks Enterprises LLC.
Kenneth was appointed Scott County sheriff in April 2018 after his predecessor took a job outside the department. In the search warrant, Lt. Hearon says he obtained information that Kenneth is not a graduate of the Indiana Law Enforcement Academy, and a top official in the Clark County Sheriff's Office suggested Kenneth probably got the job because of his association with Noel.
WHAS11 News reached out to Kenneth Hughbanks, who declined to comment.
Jamey Noel is facing 25 felony counts and his wife, Misty Noel, is facing 10. They both pleaded not guilty.
Kenneth did not run in the 2018 general election. He then returned to the Clark County Sheriff's Office and was given the title of corrections commander until he resigned in December 2019.
He remained at the building however and was paid as a consultant via Hughbanks Enterprises LLC., which he owns.
According to court documents, many invoices for the consulting work lacked a description of services performed.
At one point according to Hearon, a sheriff's office assistant attempted to provide Kenneth with a 1099 tax form. He refused, "and stated if she provided him with a 1099, he would be required to pay taxes." The assistant went to Noel and explained the situation, and Noel told her not to give Kenneth the tax form.
A former sheriff's office grant manager told Hearon they were tasked with organizing files in early 2019. As Kenneth and the worker looked around the file room, Kenneth noticed several boxes filled with financial documents, and many were marked "commissary," "commissary credit cards" and "bank statements." According to the worker, he "seemed very concerned" the files were in the room and insisted no one should have access to them.
The grant manager added Kenneth then directed inmate workers to move the boxes out of the room on carts. Hearon states in the affidavit that all 2018 commissary records are still missing.
Noel oversaw the commissary fund. Last week, the state asked him to repay $900,000 he spent from the fund on inappropriate purchases.
In August 2023, ISP partnered with the Indiana Department of Revenue and Indiana State Board of Accounts on the investigation. They found numerous vehicle registrations and insurance documents indicating E&H Family Insurance provided coverage to the Utica Township Volunteer Firefighters Association and New Chapel EMS, plus Jamey Noel, his family and the Clark County Sheriff's Office.
The Indiana Secretary of State's office informed Hearon that Kenneth and Lyndi Hughbanks own E&H. Investigators found seven businesses were created by Kenneth, including Hughbanks Enterprises.
There are multiple business names associated with UTVFA, such as New Chapel EMS, Utica Fire Department and New Chapel Fire Incorporated. In the court documents, Hearon stated this appears to be an attempt at "layering."
"The goal of layering in a corrupt business practice is to make the process of tracking money or assets through each layer of a business, in this case using assumed business named and separate accounts, more difficult," Hearon stated in the affidavit. "There is evidence of complex layering schemes involving sending money to different accounts using a series of transactions."
The court documents also state Kenneth and Lyndi filed joint Indiana tax returns for years ending 2018-2022. They failed to report income received from Hughbanks Enterprises for each year, totaling $214,700. Hearon further stated that Hughbanks Enterprises LLC has never filed an income tax return.
A separate probable cause affidavit released Wednesday indicated Hearon is also looking into a newly discovered PNC bank account connected to New Chapel and has requested additional search warrants.
Hearon concluded by saying he is investigating Jamey and Misty Noel, and their daughter Kasey Noel, and "various associates." He anticipates providing the special prosecutor with additional information for "potential additional charges."
Case background
Jamey 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.
Court documents revealed the investigation is also focusing on similar credit card activity by Kasey Noel, Jamey and Misty's daughter.
So far, the investigation has found over $3.5 million charged to business credit cards by Jamey, Misty and Kasey Noel. Those purchases were personal in nature and paid for with UTVFA funds, according to Hearon.
Kasey has not been arrested.
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