Valparaiso Man Ordered to Pay $123,523 in Restitution as part of Conviction for Wire Fraud

HAMMOND – Yesterday, Alan Jones, 55, years old, of Valparaiso, Indiana, was sentenced by United States District Court Judge James T. Moody after pleading guilty to a federal felony for mail fraud, announced Acting United States Attorney M. Scott Proctor.

Jones was sentenced to 12 months of probation and ordered to pay $123,523 in restitution to the Indiana Department of Environmental Management. 

According to documents in the case, Jones was employed by an environmental consulting company located in Chesterton, Indiana. Jones and the company were hired by gas station owners to manage and perform remediation work related to underground storage tank leaks. The State of Indiana created a state trust fund, administered by the Indiana Department of Environmental Management, to help reimburse those remediation costs. Jones submitted false and fraudulent applications for reimbursement of costs that were not actually incurred and caused state funds to be paid to the consulting company for which it, and Jones, were not entitled.

“Alan Jones participated in a scheme to fraudulently obtain public money from the State of Indiana,” said Acting U.S. Attorney Proctor. “This district is committed to prosecuting those who defraud government programs. I want to thank the combined team of state and federal law enforcement professionals for the thorough investigation which supported this prosecution.”

“The defendant’s fraudulent billing scheme undermined the financial integrity of Indiana’s trust fund for the cleanup of leaking underground storage tanks,” stated Special Agent in Charge Allison Landsman. “Protecting our air, land, and water and addressing the damage from these leaks is crucial. The EPA remains steadfast in collaborating with state partners to prosecute those who commit fraud and jeopardize essential environmental initiatives.”

This case was investigated by the Environmental Protection Agency and the Indiana Department of Environmental Management. The case was prosecuted by Assistant United States Attorney Kevin F. Wolff.