GARY URBAN ENTERPRISE ASSOCIATION (GUEA) INDICTMENT RETURNED

Hammond, IN-The United States Attorney's Office today announced the return of a twelve count indictment charging Jojuana Meeks, age35, and Charmaine Pratchett, age 32, both of Gary, Indiana, with Conspiracy to Commit Mail Fraud, Mail Fraud and Theft of Funds Concerning Programs Receiving Federal Funds. The indictment alleges that Meeks and Pratchett were involved in a massive fraud to divert Gary Urban Enterprise Association's (GUEA) money and resources for personal use.

GUEA was formed as an Indiana nonprofit corporation and given authority by the Indiana Enterprise Zone Board to exercise jurisdiction over a 2.56 square mile tract of commercial, residential, and industrial land, denominated the Enterprise Zone, located in Gary, Indiana. The Enterprise Zone encompassed an area west of Broadway to I-65, mainly from Fourth to Eighth Avenues. In general GUEA's objective was to strengthen the economic health of the Enterprise Zone. GUEA obtained funding primarily from payments made by steel mills and other businesses located within the enterprise zone in lieu of property taxes as well as federal program benefits.

GUEA operated through an eleven member board of directors who were appointed by the Governor, Mayor of Gary and the Gary Common Council. Around 1997 GUEA's board of directors appointed Jojuana Meeks as Executive Director and Charmaine Pratchett as Fiscal Manager.

The indictment alleges that from 2000 through November, 2004, Meeks and Pratchett committed fraud by using GUEA credit cards for personal expenses, diverting funds to an entity controlled by them and improperly obtaining compensation to which they were not entitled.

Amounts estimated at over $260,000 were improperly charged using GUEA credit cards for personal expenses. Such expenses included clothing, home furnishings, groceries, restaurant dinners, used cars, car rentals, items at book and music stores, personal car repair, personal travel, personal utility payments, a casket and funeral-related items, and cosmetics.

The indictment also alleges that approximately $550,000 in GUEA funds was diverted by Meeks and Pratchett to an entity called "JIL, Inc.". That entity was a bank account controlled by Meeks. Meeks split the proceeds with Pratchett.

Meeks and Pratchett also allegedly directed GUEA's payroll processing company to issue them checks for additional compensation to which they were not entitled. Approximately $32,000 was improperly obtained by Meeks and $23,000 by Pratchett as a result of this conduct.

United States Attorney Joseph S. VanBokkelen stated, "This matter represents one of the most blatant misuses of public monies that this office has investigated as part of the Project Restore Public Integrity initiative. This conduct can not and will not be tolerated. The public is entitled to that assurance." United States Attorney Van Bokkelen indicated that the GUEA matter is still under investigation, by both state and federal authorities.

These indictments were the result of an extensive cooperative investigation. Participating in this investigation were the State of Indiana Attorney's General's office, the Lake County, Indiana Prosecutor's office, the Federal Bureau of Investigation, the Department of Housing and Urban Development, the Indiana State Police, the Internal Revenue Service, and the Department of Labor. This matter is assigned to and will be prosecuted by Assistant United States Attorneys Gary T. Bell and Bernard Van Wormer who can be reached at 219-937-5500

The specific sentence to be imposed upon conviction in each case will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.