The seal of the city of Muncie at Muncie City Hall. Staff photo by Keith Roysdon
The seal of the city of Muncie at Muncie City Hall. Staff photo by Keith Roysdon
MUNCIE — The FBI is investigating city government in Muncie for possible wrongdoing.

Although the FBI offices in Muncie and Indianapolis would not acknowledge the investigation, people who have talked to agents have told The Star Press what they were questioned about and what they believe to be some elements of the probe.

And Mayor Dennis Tyler, although he noted he was advised by legal counsel against talking about the FBI investigation, said his administration has provided information and is cooperating with investigators.

"I have advised my department heads to tell the truth," Tyler said.

The scope of the investigation is hard to define, but based on what has been conveyed to The Star Press, FBI agents from Muncie and Indianapolis have talked to local people about several issues that have made headlines in recent months, including:

  • Building demolitions overseen by the city, some of them performed by a company founded by Craig Nichols, the building commissioner
  • The abrupt departure from Muncie City Hall this spring of Gretchen Cheesman, a longtime city employee who had overseen some demolition contracts for Muncie Community Development. Cheesman subsequently told officials she would talk to Tyler about what she knew about demolitions if her status was changed from fired to retired and her benefits were restored.
  • The Muncie Sanitary District's purchase of a former flea market building for $395,000 in September, about a month after the previous owner sold it for $150,000.
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