MUNCIE — An FBI probe into possible wrongdoing in Muncie city government might have been ongoing for months, officials say, but became more focused and urgent in the past three months as allegations of inappropriate practices came to light.
The day after The Star Press reported that an FBI investigation was underway and Mayor Dennis Tyler said he had told his department heads to cooperate with investigators and "tell the truth," officials were cautious Friday in their public comments about the investigation — or, potentially, investigations.
Although the FBI told The Star Press this week it could neither confirm nor deny an investigation was ongoing and Delaware County Prosecutor Jeffrey Arnold said he hadn't been "officially" notified of a federal investigation, the focus seems to be on a handful of topics, including building demolitions performed by the city, in some cases by a private company founded by Building Commissioner Craig Nichols; the firing of Gretchen Cheesman, a longtime city employee who oversaw some demolitions and who later told officials she would talk about "alleged misconduct" by officials if Tyler changed her status from fired to retired and restored her benefits; and the purchase in September of a former flea market building by the Muncie Sanitary District for $395,000, a few weeks after the previous owner sold it for $150,000.
In each of those instances, Tyler and his administration have maintained there was no wrongdoing.
Another possible investigation was cited to The Star Press on Friday also related to demolitions but stemming from the $4 million in state and federal Hardest Hit Funds awarded to the city in 2014 to remove abandoned structures.
The Star Press was told Friday that the Indiana Inspector General/State Ethics Commission was investigating the use of Muncie's Hardest Hit money. Tiffany Mulligan, chief legal counsel for the Inspector General, said, "In accordance with Indiana law, our investigations and inquiries are confidential. As a result, we cannot comment on whether our office made such an inquiry."
Officials recently acknowledged that no demolitions with Hardest Hit funding had been done in the two years since funding was awarded.