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City fires indicted DMD employees, hires special attorney

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The city has terminated two Department of Metropolitan Development employees who were indicted earlier this week on federal fraud charges stemming from a bribery scheme involving the Indianapolis Land Bank.

The firings of Reginald Walton, 29, assistant administrator of abandoned buildings for the Indianapolis Department of Metropolitan Development; and John Hawkins, 27, a senior project manager for the agency; were announced Friday afternoon.

In addition, Mayor Greg Ballard said Friday that the city has hired an attorney to review city policies and coordinate communications about the Land Bank fraud scheme with federal authorities.

“I want the people of the City of Indianapolis to know that I continue to take the allegations against two former employees of the city very seriously,” said Ballard in a prepared statement.  “Immediately after learning of the nature of the allegations, our team began conducting an internal review which when completed will be provided to the federal authorities.”

Walton and Hawkins were charged Tuesday along with three other men: David Johnson, 46, executive director of the Indiana Minority AIDS Coalition; Randall Sargent, 57, owner and president of New Day Residential Development; and Aaron Reed, 35, a friend of Walton's.

The five defendants each face three wire fraud charges with each charge carrying a potential penalty of 20 years in prison and a $1 million fine.

Walton also is charged with three counts of bribery on an organization that receives federal funds, each of which could carry a maximum penalty of 10 years in prison and a $250,000 fine. Sargent and Reed are facing one count each of bribery.

“While a federal court will ultimately decide if these two young men (Walton and Hawkins) broke the law, the evidence presented in the indictment clearly indicates they violated the city’s ethics ordinance and failed to uphold the standards our city expects from its public servants,” Ballard said in the statement.

Ballard, a Republican, said the city has hired Forrest Bowman Jr., an Indianapolis attorney who has conducted internal investigations of state government as special counsel to three Indiana governors, all Democrats.

“We have and will continue to maintain an open dialogue with federal investigators,” Ballard said. “Mr. Bowman will help facilitate our communication and data requests with the United States Attorney’s office and to perform a forensic review of city policies and procedures in an effort to ensure we have the best practices in place to protect the public trust.”

Earlier this week, the DMD suspended all property transfers from the Land Bank while it reviewed recent and in-progress transactions.





 

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  • When are they going to make things right!!
    I wonder when they are going to make the property deal Reggie Walton screwed me out of right??? All the politicans are going to do is cover their own butts..........
  • Republicans and Ballard
    I know many Republicans who feel the same way. He turned his administration over to a local law firm his first day and checked out. Ballard is not a conservative. He's a big spending liberal, who has been taking in by the trappings of the office.
  • Ballard Bites
    I voted for him last time and it WAS the LAST time. He needed to to quit running around the world on useless trips, and giving our $$ away to sports teams. I'll vote for anyone but Ballard next time. BTW...we gave $40M to the Pacers and cannot even watch the games on TV.

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  1. I never thought I'd see the day when a Republican Mayor would lead the charge in attempting to raise every tax we have to pay. Now it's income taxes and property taxes that Ballard wants to increase. And to pay for a pre-K program? Many studies have shown that pre-K offer no long-term educational benefits whatsoever. And Ballard is pitching it as a way of fighting crime? Who is he kidding? It's about government provided day care. It's a shame that we elected a Republican who has turned out to be a huge big spending, big taxing, big borrowing liberal Democrat.

  2. Why do we blame the unions? They did not create the 11 different school districts that are the root of the problem.

  3. I was just watching an AOW race from cleveland in 1997...in addition to the 65K for the race, there were more people in boats watching that race from the lake than were IndyCar fans watching the 2014 IndyCar season finale in the Fontana grandstands. Just sayin...That's some resurgence modern IndyCar has going. Almost profitable, nobody in the grandstands and TV ratings dropping 61% at some tracks in the series. Business model..."CRAZY" as said by a NASCAR track general manager. Yup, this thing is purring like a cat! Sponsors...send them your cash, pronto!!! LOL, not a chance.

  4. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

  5. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............

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