Former Vigo County Sheriff's Deputy Frank Shahadey has pleaded guilty and signed a plea agreement to avoid trial for an alleged kickback scheme that federal prosecutors say cost the local school district more than $80,000.
The proposed plea deal was filed this afternoon in U.S. District Court and applies only to Shahadey, former school security liaison for the sheriff's department and also a part-time schools' employee.
The filing does not apply to his co-defendant, Franklin Fennell, former facilities and transportation support director for the Vigo County School Corp.
According to the document, Shahadey is pleading guilty to wire fraud and theft of government funds. The potential maximum penalties are up to 20 years for wire fraud and up to 10 years for theft. The plea agreement states both penalties, as determined by the judge, could be run consecutively if the judge chooses.
Shahadey has also agreed to pay restitution toward the $80,500 taken from VCSC. The court document states the loss “attributed directly to Shahadey is $46,050.”
Shahadey has agreed the restitution should be paid by the time of sentencing. A sentencing date had not been announced this afternoon.
The plea agreement says it is based upon “information presently known” and the government does not plan to bring other federal charges against Shahadey based on that information. However, there is no protection from prosecution for any other offenses the government might discover.
No specific sentence is part of the agreement. The government has agreed to recommend a sentence based on the federal sentencing guidelines.
The final page of the plea document shows that Shahadey signed the agreement May 17. His defense attorney, Josh Moudy, signed the agreement Wednesday, and Assistant U.S. Attorney Tiffany Preston signed it Thursday.
Both Shahadey and Fennell were indicted Dec. 14. They were arrested by FBI agents Nov. 2.
Shahadey, who retired as a 37-year deputy with the Vigo County Sheriff's Department after his arrest, originally faced nine counts of wire fraud and one count of theft or bribery involving programs receiving federal funds. The plea agreement drops the other eight counts.
Shahadey has been in federal custody while awaiting trial. Fennell was released to home detention.
Fennell was indicted on nine counts of wire fraud, one count of theft or bribery involving programs receiving federal funds, and two counts of lying to federal agents.