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Owner of New Albany night club arrested, accused of money laundering

Investigators found that Donald Scott owes more than $100,000 in Indiana state taxes.
Credit: domnicky

LOUISVILLE, Ky. — A southern Indiana business owner was arrested on March 16 on several felony charges dating back to April 2022.

More than a year ago, investigators began looking into "Red Ink, Inc.", an adult entertainment company operating under the name "The Rustic Frog" in New Albany.

Investigators found that the business's sole owner, Donald Scott, engaged in corrupt business practices and failed to pay $132,542 in Indiana state taxes over a three-year period. 

Donald Scott of New Albany was charged with the following felonies:

  • Corrupt Business Practices – Level 5 Felony
  • Money Laundering - Level 5 Felony
  • Money Laundering - Level 6 Felony (2 counts)
  • Theft - Level 5 Felony
  • Theft – Level 6 Felony (2 counts)
  • Failure to Remit Taxes – Level 6 Felony (3 counts)

Scott was arrested without incident and incarcerated at the Floyd County Jail without bond.

Detective Tim Denby, Indiana State Police Special Investigations Section and the Indiana Department of Revenue assisted in the investigation.

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