Former Center Township Trustee Stephen Durham is accused of misappropriating over $58,000 of Center Township funds to purchase racing equipment and other items of no benefit to Center Township citizens when Durham was serving as trustee. He’s facing six felony counts. The warrant was sealed when issued but the seal was lifted earlier today.

Stephen Christopher Durham, 44, Indianapolis, formerly from rural Bloomfield, was taken into custody by Indiana State Police Troopers last Wednesday, November 25. Durham was booked into the Marion County Jail.

Yesterday, on Monday, November 30, Durham was transferred to the Greene County Jail where he was booked in around 2 p.m. by Greene County Sheriff’s Deputy Terry Wade.

Following a lengthy investigation by the Indiana State Police, Greene County Prosecutor Jarrod Holtsclaw reviewed the case and filed criminal charges against Durham in Greene Superior Court on Tuesday, November 17.

A warrant for Durham’s arrest was promptly issued that same day but the prosecutor asked for the warrant and all info about the case to be sealed and the court approved.

Although ISP released limited information about the case at the time of Durham’s arrest, GreeneStreets did not include any additional info because the case was still under seal by the court.

The seal was lifted earlier today, Tuesday, December 1.

The ISP investigation was led by ISP Detective Tony L. Guinn from the Special Investigation Division in the Organized Crime and Corruption Unit with assistance from the Indiana State Board of Accounts and State Board of Accounts Senior Special Investigator Lynne Spencer.

Stephen Durham was elected and served as the Trustee of Center Township in eastern Greene County from January 1, 2015, through December 31, 2018.

Durham is now accused of falsifying documents and using Center Township funds for unauthorized disbursements. Specifically, to pay for equipment for his racing team and other personal/business items.

In late August of 2018, when Investigator Spencer was conducting a forensic audit of Center Township accounts, she discovered unauthorized disbursements and purchases that appeared criminal in nature and Det. Guinn began an investigation.

By November of 2018, Det. Guinn, Investigator Spencer and ISP Sgt. Troy Stanton were at the Bloomington Post to meet with Center Township Fire Chief Jeremy Inman to see if he could identify any of the suspicious transactions as legitimate purchases related to the fire department. He was able to identify some as legitimate but Det. Guinn said the Chief could not identify the others and when asked if knew of any legitimate reason for the suspicious purchases, the Chief said he could not think of any reason why the township would need the items purchased by Durham, especially the items related to racing.

After Investigator Spencer completed her audit, she reported finding multiple purchases and payments made to businesses and individuals that either had no supporting documentation or were for items not normally purchased by a township trustee. All payments were made with Center Township checks signed by Durham.

Det. Guinn said he learned that Durham was heavily involved in auto racing and had his own racing team and racing car.

Det. Guinn spent time traveling to the various businesses where the suspicious purchases were made to talk to employees and individuals with knowledge of the transactions.

The suspicious transactions include purchases made on two different occasions at Cincinnati Industrial Auctioneers, in Ohio, for $9,965 to pay for items that could be used in the manufacturing and maintaining of a race car or items commonly used by a general contractor. Another transaction at Greg Smith Equipment paid for a tire changing machine and a 20-ton hydraulic press for $1,808.30.

Still more suspicious transactions include $5,675 to Truck Equipment and Body Company in Indianapolis for a snowplow that was installed on a truck belonging to 3D General Contracting, a business which Det. Guinn said was owned by Durham. Another purchase for $2,045.99 to Custom Metal Roofing purchased red and white sheet metal that may have been used by Durham’s company to perform work at the Indy Speedrome.

The investigators determined that in addition to the above and other purchases, the sales tax identification number for Center Township was used to avoid paying sales tax on many of the purchases.

In mid-August, when search warrants were executed at four locations including two residences and one business, a number of items of evidence was seized.

In a probable cause affidavit prepared by Det. Guinn, he states that he determined that in 2016, Stephen C. Durham used Greene County Center Township Trustee funds to make a total of $850 in purchases of items that did not come to nor have any benefit to Greene County Center Township or its citizens.

Det. Guinn states in 2017, Durham used Center Township Trustee funds to make a total of $28,194.85 in purchases of racing equipment and other items that did not come to nor have any benefit to the township or its citizens.

Det. Guinn states in 2018, Durham used township funds to make a total of $29,512.17 in purchases of racing equipment and other items that did not come to nor have any benefit to the township or its citizens.

In total, Durham is accused of misappropriating $58,557.02 of funds from Center Township.

When Durham was booked into the Greene County Jail, his bond was set at $24,000 surety with ten percent cash allowed. He posted $2,400 and was released later the same day.

Durham is scheduled to appear in Greene Superior Court for an initial hearing at 1 p.m. on Monday, December 14, when he will be formally charged with:

Three counts of official misconduct by a public servant, all Level 6 felonies, and
Three counts of theft where the value of the property is between $750 and $50,000, all Level 6 felonies.