Court documents: Noel paid former Scott County sheriff with jail comissary funds

Dec. 14—CLARK COUNTY — Court documents released Thursday state former Clark County Sheriff Jamey Noel paid former Scott County Sheriff Kenneth Hughbanks out of Clark County Jail commissary funds from March 2015 until December 2022.

The payments are part of several new findings connected to the criminal case against Noel, where he's charged with 15 felonies for theft, public corruption and ghost employment.

The contents of those warrants were released publicly Thursday, and they focus on military surplus equipment owned by the CCSO during Noel's terms as sheriff.

According to the documents written by ISP Lt. Jeffrey Hearon, Noel paid Hughbanks consulting fees worth more than $265,000 through commissary funds over a seven-year period. Noel was Clark County sheriff during this time period. Hughbanks was employed at the Clark County Sheriff's Office in different capacities at various times from 2004 through 2019, and continued in a consulting role through 2022.

A witness told ISP Hughbanks declined to take a 1099 tax form related to the payments because then he'd have to pay taxes on them.

The witness told Noel that Hughbanks declined the form, and Noel told her not to provide him with them.

Current Clark County Sheriff Scottie Maples reported allegations against Noel to authorities over the summer, and his assistant chief, Mark Grube, told ISP that in addition to Noel paying CCSO employees to do maintenance work on his personal businesses and properties, Noel also sold county vehicles at a discount to those employees, and received millions of dollars in military surplus equipment. Noel and Hughbanks are accused of acquiring some of the property for personal use.

Hughbanks and Noel also hold positions in the 9th District GOP. Hughbanks is the chair of the Scott County Republican Party, and Noel is the chair of the Clark County Republican Party and the 9th District GOP.

Hughbanks served as the Scott County sheriff for 11 months, starting in April 2018. He was appointed to the position when Sheriff Dan McClain was appointed U.S. Marshall of the Southern District of Indiana. He didn't run the next election year and was employed with the CCSO following his tenure as sheriff. He left the CCSO in 2019 and owns an insurance business in Scott County.

Grube told investigators that Hughbanks didn't graduate from the Indiana Law Enforcement Academy, and instead was appointed Scott County sheriff as a reward from Noel, due to Noel's influence within the local Republican Party.

Documents released publicly Thursday show ISP returned to Noel's Jeffersonville home, and searched his pole barn property in Utica, late last month. ISP retrieved vehicles from both properties, including a vintage Chevrolet Corvette.

Hearon wrote he believed Noel embezzled the $45,000 paid for the Corvette from Utica Volunteer Firefighters Association funds.

In addition to searches in Clark County, ISP also investigated several properties in Scott County related to Noel's case.

ISP conducted search warrants at the home of Hughbanks and his wife, Scott County Council President Lyndi Hughbanks. They also searched Hughbanks' insurance business located in Scott County.

Search warrants indicate ISP was looking for any documentation in Hughbanks' home and business related to Noel, his wife Misty Noel, his daughter Utica Township Trustee Kasey Noel, and New Chapel EMS. Police also searched for any property tax documents, any auction records and receipts, and any U.S. government surplus property that belonged to the CCSO.

Another home in Scott County, belonging to former CCSO employee John Kimmick, was also searched. Search warrants indicate that ISP observed two large shipping containers and a military trailer on Kimmick's property last month, and conducted the search on Nov. 29.

Hearon also contacted a member of the federal government last month, who confirmed the CCSO received more than $7 million in military surplus equipment from 2015 to 2022.

ISP also interviewed Jeffrey Groh, who served as a CCSO Colonel during Noel's first term.

Groh said Noel was a secretive person, and told police about a time he visited a warehouse leased by the CSSO in the River Ridge area of Jeffersonville. When Groh arrived, he said he was surprised to see the warehouse was full of military equipment, and that Noel told him that eventually all of the equipment could be sold, and the money could go back to the CCSO.

Groh said he insisted on a full inventory of all property in the building, and that Noel told him Hughbanks would take care of his request. After that, Groh was never allowed back into the property.

The River Ridge Redevelopment Authority demolished the warehouse and the property moved.

Court records indicate neither Hughbanks nor Kimmick had been arrested as of Thursday afternoon. No additonal charges against Noel have been listed.