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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Indiana

FOR IMMEDIATE RELEASE
Wednesday, October 4, 2017

Former Vigo County sheriff’s deputy sentenced in federal court on fraud charges

Stole more than $80,000 from Vigo County taxpayers

PRESS RELEASE

Indianapolis – United States Attorney Josh Minkler announced today the sentencing of a former Vigo County sheriff’s deputy for his role in a fraud scheme in which he stole more than $80,000 in Vigo County School Corporation (VCSC) money. Frank Shahadey, 61, Terre Haute, was sentenced to 16 months’ imprisonment by U.S. Chief District Judge Jane Magnus-Stinson after pleading guilty to wire fraud and theft of government funds.

 “Public officials are supposed to serve the public, and not the other way around,” said Minkler. “When police officers believe they are above the law they were sworn to uphold, this office will hold them accountable.”

Shahadey was a Vigo County Sheriff’s deputy who also worked part time for the VCSC as a school security officer. From April 2014 through October 2016, Shahadey and a co-defendant instructed a Terre Haute area business to submit false and fraudulent invoices for work performed for the VCSC.  He further directed an individual to falsify work estimates and invoices either by inflating the cost of the work, or by seeking payment for the work that was either not performed, or was done by another business.

As a result of Shahadey’s fraud scheme, Shahadey received kickbacks of more than $80,000.

This case was investigated by the Federal Bureau of Investigation.   

 “When a law enforcement officer chooses to violate their oath of office and commit crimes, their actions erode public trust and confidence and tarnish the entire community of dedicated public servants,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “This sentence highlights that the FBI considers public corruption a top criminal priority and our agents will continue to work diligently to pursue those whose greed outweighs their vow to serve and protect."

According to Assistant United States Attorney Tiffany J. Preston who prosecuted this case for the government, Shahadey must serve two years of supervised release following his sentence. 

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Updated October 4, 2017