GREENCASTLE MAN SENTENCED
FOR FEDERAL PROGRAM FRAUD

PRESS RELEASE

Timothy M. Morrison, Acting United States Attorney for the Southern District of Indiana, announced that GEORGE E. ALEXANDER, 59, Greencastle, Indiana, was sentenced to18 months imprisonment today by U.S. District Judge Larry J. McKinney following his guilty plea to federal program fraud. This case was the result of an investigation by the United States Department of Justice, Office of the Inspector General, Federal Bureau of Investigation and the Indiana State Police.

During the summer of 2007, the U.S. Department of Justice, Office of the Inspector General, the Federal Bureau of Investigation and the Indiana State Police conducted a joint investigation regarding ALEXANDER, Ombudsman, Putnam County Sheriff’s Office (PCSO), Greencastle, Indiana involving allegations of violations of Title 18, United States Code, Section 666 (Theft or bribery concerning programs receiving Federal funds).

As background, the Bureau of Justice Assistance (BJA), is an agency within the DOJ which provides leadership and services in grant administration and criminal justice policy development to support local, state, and tribal justice strategies to achieve safer communities. BJA's overall goals are to (1) reduce and prevent crime, violence, and drug abuse, and (2) improve the functioning of the criminal justice system. BJA administers the Edward Byrne Memorial Justice Assistance Grant (JAG) Program, which allows states and local governments to support a broad range of activities to prevent and control crime and to improve the criminal justice system. JAG Program funds are awarded directly to state and local governments for the following purposes:

• Law enforcement programs.
• Prosecution and court programs.
• Prevention and education programs
.• Corrections and community corrections programs.
• Drug treatment programs.
• Planning, evaluation, and technology improvement programs.

On or about April 15, 2005, ALEXANDER, Ombudsman, Putnam County Sheriff’s Office (PCSO), Greencastle, Indiana applied to the BJA for a JAG grant on behalf of the PCSO. As set forth in the grant application, the funds were to be utilized by the PCSO to establish an Emergency Response Team. On September 9, 2005, JAG grant no. 2005-DJ-BX-1631 in the amount of $27,143 was awarded to the PCSO. Subsequently, a grant award bearing the signature of a Putnam County Commissioner, dated September 28, 2005, was faxed to BJA, accepting receipt of the grant. In an interview on August 24, 2007, the Commissioner denied ever signing the grant award or having any knowledge of this grant.

On December 15, 2005, an electronic transfer from the BJA, DOJ was made in the amount of $27,143 to the PCSO, Special Project Account at Old National Bank, Greencastle, Indiana. On December 16, 2005, ALEXANDER withdrew $27,143 from the PCSO, Special Project Account at Old National Bank in the form of a cashier’s check. The cashier’s check was made payable to “George Alexander PCSO.” On that same date, December 16, 2005, ALEXANDER deposited this cashier’s check into his personal bank accounts held at Members Heritage Federal Credit Union, Greencastle, Indiana. Of the $27,143, $5,143 was deposited into ALEXANDER’S savings account, $20,000 into ALEXANDER’S checking account, and $2,000 in cash was provided to ALEXANDER, for which he signed a receipt.

A review of ALEXANDER’S bank records at Members Heritage Federal Credit Union showed that ALEXANDER utilized the $27,143 in JAG grant funds deposited into his bank account for personal use and not for expenses related to the PCSO’s Emergency Response Team.

On July 5, 2006, ALEXANDER electronically submitted a Financial Status Report for JAG Grant No. 2005DJBX1631 to BJA, DOJ certifying that the $27,143 in grant funds received by the PCSO were utilized for the purposes set forth in the grant award documents.

On April 19, 2006, ALEXANDER applied to the BJA for another JAG grant on behalf of the PCSO. As set forth in the grant application, the funds were to be utilized by the PCSO to establish an Emergency Response Team. On August 24, 2006, JAG grant number 2006-DJ-BX- 1123, in the amount of $18,384 was awarded to the PCSO. Subsequently, a grant award for grant number 2006-DJ-BX-1123, bearing the signature of a Putnam County Commissioner, dated August 29, 2006, was faxed to BJA, accepting receipt the grant. The Commissioner stated in his interview on August 24, 2007, that he never signed the grant award and had no knowledge of this grant.

On September 14, 2006, an electronic transfer from the BJA, DOJ was made in the amount of $18,384 to the PCSO, Special Project Account at Old National Bank, Greencastle, Indiana. On September 15, 2006, ALEXANDER withdrew $18,403 from the PCSO, Special Project Account at Old National Bank in the form of a cashier’s check. The cashier’s check was made payable to “PCSO/George Alexander.” This left a balance of $98.33 in the PCSO, Special Project Account. On that same date, September 15, 2006, ALEXANDER deposited the cashier’s check into his personal bank accounts held at Members Heritage Federal Credit Union, Greencastle, Indiana. Of the $18,403, ALEXANDER deposited $14,903 was into his savings account, $2,000 into his checking account, and received $1,500 in cash for which he signed a receipt.

A review of ALEXANDER’S bank records at Members Heritage Federal Credit Union showed that ALEXANDER used the $18,384 in JAG grant funds deposited into his bank account for personal use and not for expenses related to the PCSO’s Emergency Response Team.

In short, ALEXANDER used a total of $45,527.00 in JAG grant funds for his personal use and not for grant related purposes.

From April 27, 2005 to September 15, 2005, ALEXANDER withdrew $12,389.90 in cash from the PCSO Special Project Account, and deposited $10,300 in cash into his personal account at Members Heritage Federal Credit Union. The original sources of these funds were DOJ Law Enforcement Block grant funds, which were direct-deposited into the PCSO Special Project Account by the DOJ. The following is a chart of the withdrawals and corresponding deposits:

From July 6, 2005 to April 19, 2007, ALEXANDER negotiated and deposited 7 checks belonging to the PCSO totaling $29,995.21 into his personal bank account. ALEXANDER used these funds for his personal use. The following is a chart listing the 7 checks deposited into ALEXANDER’S account:

On March 24, 2007, ALEXANDER charged a water heater totaling $329.00 to the Putnam County Sheriff’s Department. Also on March 24, 2007, per ALEXANDER’S directions, Tomas Gilson, Maintenance repairman for the PCSO installed the water heater at ALEXANDER’S personal residence, which he was renting. ALEXANDER then received a rental credit of $590.26 from the landlord for the installation and purchase of the water heater.

The total fraud amount found during the investigation of ALEXANDER is $88,831.37. The following is a breakdown of the loss:

Cash Withdrawals from Law Enforcement Block Grants $ 12,389.90
DOJ JAG Funds $ 45,527.00
Funds Belonging PCSO $ 29,995.21
Water Heater/Rental Credit $ 919.26
T otal $ 88,831.37

According to James M. Warden, who prosecuted the case for the government, Judge McKinney also imposed 3 years supervised release following ALEXANDER’s release from imprisonment. ALEXANDER was ordered to make restitution of approximately $58,000 to the federal government and approximately $31,000 to Putnam County.

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