United States Attorney Joseph S. Van Bokkelen Northern District of Indiana 5400 Federal Plaza, Suite 1500 Hammond, IN 46320 FOR IMMEDIATE RELEASE CONTACT: Mary L. Hatton September 25, 2006 PHONE: (219) 937-5603 Fax: (219) 852-2770 GARY URBAN ENTERPRISE ASSOCIATION (GUEA) SUPERSEDING INDICTMENT RETURNED Hammond, IN The United States Attorney's Office today announced the return of a superseding indictment in the ongoing investigation into the operation of the Gary Urban Enterprise Association (GUEA). Previously, Jojuana Meeks, former GUEA Executive Director, and Charmaine Pratchett, former GUEA Fiscal Manager, were indicted for conspiracy, mail fraud and federal program theft. The superseding indictment alleges two former GUEA Board of Directors members, Johnnie Wright and Derrick Earls, participated in the illegal conduct with Meeks and Pratchett. The superseding indictment also alleges federal tax offenses against Meeks and Pratchett. In addition to the conspiracy, fraud and theft counts, Meeks and Pratchett are also charged with federal tax offenses. Johnnie Wright, age 76, and Derrick Earls, age 51, both of Gary, Indiana, served on the GUEA Board of Directors from 1999-2004. GUEA also established the Northwest Indiana Commercial Industrial Corporation, Inc. (NICICI), to assist GUEA in purchasing properties in need of remediation. Wright and Earls had signature authority on GUEA and NICICI checks. The indictment alleges that Meeks essentially allowed the GUEA Board to dissolve and cease functioning in any oversight capacity. This allowed Meeks, Pratchett, Wright and Earls to handle GUEA's finances and divert money for their own personal benefit or the benefit of others. Examples, as alleged in the indictment, include: Wright diverted and stole $95,920 and used this money to pay her personal utility bills, delinquent property taxes and college tuition for a relative. Earls diverted and stole $66,710 and utilized some of that money to pay for a family member to attend modeling school. In May 2002, Wright and Earls signed an NICICI check for over $37,000 payable to cash. Pratchett endorsed the check splitting some $33,000 with Meeks. The remaining $4,000 was used to pay off a personal judgment entered against Meeks in the Lake Superior Court. All four defendants are charged with one count of conspiracy to commit mail fraud, ten counts of specific acts of mail fraud and one count of federal program theft. Meeks is also charged with four counts of tax evasion for failing to file tax returns and attempting to conceal her true income for the years 2000-2004. Pratchett is charged with four counts of filing false tax returns for those same years. This indictment is a result of the Operation Restore Public Integrity initiative of the Federal Bureau of Investigation, Indiana State Police, Internal Revenue Service and the United States Attorney's Office. Also assisting in this indictment was the Department of Housing and Urban Development. This matter is assigned to and will be prosecuted by Assistant United States Attorneys Gary T. Bell and Bernard L.Van Wormer who can be reached at 219-937-5500. The specific sentence to be imposed upon conviction in each case will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court. ###