Former assistant director of the Indianapolis Department of Metropolitan Development sentenced for his role in fraud scheme
INDIANAPOLIS - United States Attorney Josh Minkler announced today the sentencing of the former assistant director of Metropolitan Development for the City of Indianapolis. Reginald Walton, 32, was sentenced to nine years’ imprisonment by U.S. District Judge William T. Lawrence. The Court also fined Walton $250,000.
“The citizens of Indianapolis deserve better from their public officials," said Minkler. “Betraying the public’s trust and wasting tax dollars is a crime we take very seriously. Those who chose to ignore federal law will be held accountable, just as this sentence holds Mr. Walton accountable."
The purpose of the Indianapolis Land Bank is to acquire abandoned and tax delinquent properties in Indianapolis and return them to productive and economically viable use. Properties are made available for sale to non-profit and for-profit real estate developers. For-profit investors interested in purchasing real estate from the Land Bank must pay at least the appraised value of the property. Non-profit purchasers, however, may bypass the auction process, purchasing real estate for a price between $1,000 and $2,500 per parcel, regardless of the appraised value of the property.
Walton and his co-defendant David Johnson accepted bribes and “kick-backs" to facilitate fraudulent property sales to non-profit entities that would then sell the property to for-profit businesses. After these “pass-through" transactions had taken place, Walton and Johnson would receive kickback payments from the non-profit organizations from the proceeds of the property sales.
On March 19, 2015, following a two week jury trial in United States District Court, Walton and Johnson were found guilty of multiple fraud and bribery charges based on their involvement in the fraudulent scheme.
This case was prosecuted by Drug and Violent Crime Chief Bradley A. Blackington and Assistant United States Attorney Cynthia J. Ridgeway.
Source: U.S. Department of Justice, Office of the United States Attorneys
