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Former real estate exec to plead guilty to wire fraud

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A former executive of two once-prominent area home-building firms has agreed to plead guilty to stealing more than $440,000 from the companies.

Kim Hutchinson, 51, of Plainfield entered her plea in federal court in Indianapolis on Thursday, the day before the U.S. Attorney’s Office announced it had charged her with wire fraud following an FBI investigation.

Hutchinson is the former treasurer of Greenwood-based J. Greg Allen Builders and Princeton Homes, both of which were operated by developer J. Greg Allen. He also owns a commercial real estate firm that developed downtown’s Allen Plaza.

IBJ reported in June that the two homebuilding businesses closed early this year after Allen filed suit against Hutchinson and Jeff West, the former president of the companies, in Johnson Superior Court in February.

The lawsuit claims West and Hutchinson stole nearly $1 million by co-mingling company funds and concealing unauthorized payments to themselves by claiming the payments were going to vendors. The suit against West is ongoing, Allen said Tuesday morning.

West denies having any role in the scheme and filed a counterclaim in April, asking a judge to enforce a verbal settlement agreement he claims he reached with Allen in 2010 after leaving the company to start his own home-building business.

Allen said Tuesday that he's not surprised by the charges against Hutchinson.

"I'm saddened for Kim and her family," he said. "I wish she would have never did what she did."

According to federal prosecutors, Hutchinson wrote a series of unauthorized checks to herself from Allen's bank accounts totaling $446,419.29 from 2002 through March 2010.

Hutchinson then used her knowledge of accounting methods to hide the checks from her employer.

“Half a million dollars is a lot of money to steal from someone to whom you owe some duty of loyalty as an employee,” U.S. Attorney Joe Hogsett said in a prepared statement. “We believe Hutchinson violated that duty and will now face the consequences.”

Hutchinson faces a maximum of 20 years in prison and a $250,000 fine, but it's unlikely she’ll receive that strict of a sentence. Prosecutors said in the plea agreement that they’ll recommend a lower sentence because Hutchinson cooperated with authorities and has accepted responsibility for her conduct.

A spokesman for the U.S. Attorney's Office told IBJ on Tuesday that a sentence of between 30 and 40 months would be more appropriate.

Hutchinson’s attorney, Brian Newcomb of Franklin, agreed.

“She has no criminal history and she has cooperated with the government, which is why the recommendation is at the low end of the guidelines,” Newcomb said.

Hutchinson agreed to plead guilty because she’s “just trying to do the right thing” and she’s “not making any excuses,” he said.

Newcomb also said Hutchinson will repay a “significant portion” of her restitution—the entire amount of the stolen funds—prior to sentencing.

A sentencing date has not been set.

 

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  • Arrested in Johnson County, Indiana?
    Getting arrested in Johnson County, Indiana is not fun for any one. I wonder if Miss Hutchinson needed to get a bail bondsman. Not sure if is true or not but I heard that Johnson County could be going to cash bonds? Cash Bonds? With a half million stolen and facing 20 years in prison... Is it possible she would skip bail? If so who would go after her? Nobody to my understanding if Johnson County goes to cash bonds. Luckily for now, Johnson County is still using bail bondsman. If you know someone that has been arrested in Johnson County, here is a local bail bondsman I know that could help you out. http://www.bailbondsjohnsoncounty.com Or give him a call at 317-888-3500.
  • Restitution??
    If Mr. Allen recovers his money will he pay his subcontractors and vendors? How about honoring the warranties on all of the homes he built in the last year???
  • Good
    I think Attorney Hogsett's words are so true. This man (Mr. Allen) provided a well paying job to her and she stole money. She needs to pay the consequences for that, and she is. Glad to see the justice system work.

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  1. Great article and post scripts by Mike L (Great addition to IBJ BTW). Bobby's stubborn as a mule, and doubt if he ever comes back to IU. But the love he would receive would be enormous. Hope he shows some time, but not counting on it.

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  4. Jim, your "misleading" numbers comment is spot on. This is the spin these posers are putting on it. News flash, fans: these guys lie. They are not publicly traded so no one holds them accountable for anything they say. The TV numbers are so miniscule to begin with any "increase" produces double digit "growth" numbers. It's ridiculous to think that anything these guys have done has awakened the marketplace. What have they done? Consolidate the season so they run more races on consecutive weekends? And this creates "momentum." Is that the same momentum you enjoy when you don't race between August and March? Keep in mind that you are running teams who barely make ends meet ragged over the summer to accomplish this brilliant strategy of avoiding the NFL while you run your season finale at midnight on the East Coast. But I should not obfuscate my own point: any "ratings increase" is exactly what Jim points to - the increased availability of NBC Sports in households. Look fans, I love the sport to but these posers are running it off a cliff. Miles wants to declare victory and then run for Mayor. I could go on and on but bottom line for God's sake don't believe a word they say. Note to Anthony - try doing just a little research instead of reporting what these pretenders say and then offering an "opinion" no more informed than the average fan.

  5. If he's finally planning to do the right thing and resign, why not do it before the election? Waiting until after means what - s special election at tax payer expense? Appointment (by whom?) thus robbing the voters of their chance to choose? Does he accrue some additional financial advantage to waiting, like extra pension payments? What's in it for him? That's the question that needs to be asked.

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