Guilty Plea: Former Sheriff Kenneth Hughbanks Sentenced in Tax Evasion Scandal
SCOTTSBURG, Ind. – In a high-profile case underlining the importance of public official accountability, former Scott County Sheriff Kenneth Hughbanks has entered a guilty plea to tax evasion charges. While avoiding prison time, the court has mandated a significant period of probation and full restitution of unpaid taxes, sending a clear message about financial integrity within public service.
A Guilty Plea, A Lighter Sentence
Hughbanks, who previously served as Scott County Sheriff, faced allegations of financial impropriety stemming from an audit related to the broader Jamey Noel investigation. However, his recent conviction stems from separate charges of tax evasion, where he admitted to deliberately defrauding the state of Indiana.
During the court proceedings, Special Prosecutor Ric Hertel emphasized that while the tax fraud was uncovered during the expansive Jamey Noel investigation, Hughbanks’ conviction for tax evasion is a distinct matter. “It came about through the Jamey Noel investigation that this was uncovered, but this has nothing to do with the Jamey Noel investigation,” Hertel stated. Hughbanks’ cooperation with state police in the Noel inquiry inadvertently led to the discovery of his own tax irregularities through a thorough review of his financial records.
The prosecutor confirmed Hughbanks’ intent: “It was your intent to defraud the state of Indiana and or evade the payment of tax or any part thereof as part of Indiana code 63, yes.”
Unravelling the Tax Fraud
The former sheriff pleaded guilty to two counts of tax evasion, admitting to failing to report income from property sales and misusing funds from a relative’s bank account, which he paid to himself. These unreported earnings collectively amounted to hundreds of thousands of dollars, resulting in a tax liability of over $13,000.
Judge Jason Mount delivered the sentence, ordering Hughbanks to pay precisely $13,273.02 to the Indiana Department of Revenue. Defence lawyer Pat Renn confirmed the immediate payment. In court, Hughbanks offered only brief “yes, sir” and “no, sir” responses, refraining from making a personal statement regarding his actions.
Beyond the financial penalty, Hughbanks will spend the next 908 days under probation, a substantial period reflecting the gravity of his guilty plea and the breach of public trust.
More Than Just One Case: A Warning to Public Officials
Special Prosecutor Ric Hertel used Hughbanks’ conviction as a stark warning to other public officials, highlighting a pattern of misconduct in the region. “We’ve prosecuted six people, five of them have been convicted, two of them former sheriffs in southern Indiana. The idea is crime probably doesn’t pay,” Hertel remarked, underscoring the ongoing efforts to ensure accountability.
The legal proceedings in the area continue, with former Clark County Councilman John Miller still battling charges related to violating Indiana’s conflict of interest law. His trial is anticipated to commence in the spring, further extending the narrative of public official scrutiny in the state.
This case serves as a critical reminder that public service demands the highest standards of integrity and transparency, and that breaches of trust, particularly involving financial misconduct like tax evasion, will be met with serious legal consequences, even if they don’t always result in incarceration. Learn more about the legal definition of tax evasion.
