IBJNews

Fraud victim files civil suit against ex-councilor

Back to TopCommentsE-mailPrintBookmark and Share

An Indianapolis physician who lost $1.7 million in a fraud scheme orchestrated in part by former Democratic City-County Councilor Paul C. Bateman Jr. has sued Bateman and two associates in Marion Circuit Court.

The civil suit comes as a criminal trial stemming from the case begins in U.S. District Court for the Southern District of Indiana. Jury selection began Monday morning in the trial of co-defendant Manuel Gonzalez, 53, who is facing three counts of wire fraud and three counts of money laundering.

Bateman, 58, pleaded guilty last month to 13 counts of money laundering and wire fraud. A third co-defendant, ringleader Michael Russell, 54, agreed to a plea deal a week earlier on 20 counts of wire fraud and money laundering.

The men are accused of persuading Dr. Arthur Sumrall to invest the money in their foundation and an ethanol-production business they said would fund it, but instead spent the money on personal luxuries.

Sumrall filed his civil suit seeking unspecified damages on Feb. 5. The lawsuit names all three criminal defendants and The Russell Foundation Inc., the not-for-profit the ethanol business was supposed to support.

The suit says the men solicited Sumrall's cash to invest both in ethanol production and development of a monorail system. It alleges the men used the funds "in a scheme of unauthorized selling and refinancing of vehicles purchased by The Russell Foundation."

"The titles were fraudulently signed by a law enforcement officer associated with the defendants," the suit alleges.

Bateman, along with Russell, also has agreed to pay back the $1.7 million they obtained from the physician, referred to as A.S. in the indictment filed in December 2011 against Russell, Bateman and Gonzalez.

According to the indictment, Russell approached the physician in January 2007 during a medical appointment about making an investment in an entity later established as Indiana Ethanol Capital Investments LLC. Russell, Bateman and Gonzalez attended several meetings with the doctor at a Denny's restaurant to further sell him on the investment.

Russell told the physician that the ethanol operation could reap an $18.5 million return on a $600,000 investment, and that he would be the last of 12 people to invest in it. In fact, the doctor was the only investor.

Between February 2007 and April 2007, according to court documents, Bateman picked up five checks for the ethanol investment totaling $702,000, most of which was deposited into Bateman’s personal account. The remainder was put into The Russell Foundation account, and later was transferred between that account and Bateman’s personal account.

The trio allegedly spent all but $30,000 of the money, purchasing seven cars, as well as custom clothing, home furnishings, entertainment and “elaborate security details” that included members of the Indianapolis Metropolitan Police Department, the indictment said.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I keep wondering why I keep hearing about this problem of corporations leaving America, and I never hear a reasonable proposal to lower corporate tax rates and raise personal rates on income from capital gains and dividends, especially for high earners. It is just too simple of a solution for Congress to embrace?

  2. Are you financially down and you need money to settle your dept,or you need money to start up a business or to invest on a huge business,we also offer Loans to individuals, Firms and cooperate bodies at low interest rate , loan terms determinant,Loan amount between the sum of $5,000.00 to $100,000,000.00. US Dollars And Euro. Loan for developing businesses a competitive edge/ business expansion. We Offer The Following Kinds Of Loans. Personal Loans (Secure and Unsecured) Business Loans (Secure and Unsecured) Consolidation Loan FIRST INFORMATIONS NEEDED ARE: BORROWER’S DATA’S INFORMATION,FILL AND RETURN FOR QUICK START UP PROCESS. Name:_________ Last Name:_________ Age:_________ Contact Address:_________ Country:_________ Amount Needed as Loan:_________ Loan Duration:_________ Phone Number__________ Monthly Income/Yearly Income:_________ Purpose for Loan:_________ Occupation:_________ How Soon is Loan Needed__________ Email via: albertbrownfirm@outlook.com

  3. is a disaster. SR37 already needs to be built to interstate standards between 465 and SR144. Southport Road is a mess each morning and evening.

  4. Bass Pro Shops would be good for the mall as well as a Giant Eagle Market District or a Jungle Jim's International Market Place grocery store like the one near Cincinnati Ohio.A Disney quest indoor theme park would be good.An Academy outdoor store would be good too.Indoor Circus shows and magic shows would be good as well. A casino with sports bar would be good.A Disney theater inside that shows movies and Broadway shows would work.Nashville Tennessee concert shops with indoor neon lights would be good.How about a theater that shows travel shows and theme parks. A train store would be good.How about a giant toy store with high tech video games.

  5. This development is in addition to Allpoints Midwest 5, Aitrtek, a recent FedEx and more in Plainfield. Greenwood and Brownsburg also have similar projects.

ADVERTISEMENT