FRANKFORT, Ind. (April 2, 2023) – Indiana Attorney General Todd Rokita filed suit against Clinton County Sheriff Rich Kelly and his wife Ashley Kelly on Thursday, March 30, seeking restitution from conclusions contained within a November 23, 2021, State Board of Accounts (SBOA) audit. The suit alleges the Kelly’s of “malfeasance, misfeasance, and/or nonfeasance”; this action adds to a growing list of lawsuits involving the Kelly’s as either defendants or plaintiffs.
Rokita alleges in the 16-page complaint the SBOA found the Kelly’s violated the Clinton County nepotism ordinance – Sheriff Kelly challenged the merits of the Clinton County nepotism ordinance in its own, separate legal action in a Tippecanoe County court against the Clinton County Commissioners and County Council. The case was originally filed by the County in 2021 and amended in 2022 to include the Sheriff’s complaint. The Sheriff won – the judge ruling the Clinton County nepotism ordinance did not forbid the Sheriff from hiring his wife.
Rokita also alleges the Kelly’s failed to file a conflict of interest form stating Ashley is the wife of the Sheriff and no written contract to perform commissary services by either Ashley or Leonne LLC was provided to the County. Both are at issue in a separate civil lawsuit filed in 2022 by the Kelly’s against attorney Tom Little in Tippecanoe County; Leonne LLC is a company formed in 2018 by the Kelly’s prior to the beginning on Sheriff Kelly’s term, Ashley listed as a 51% owner, the Sheriff a 49% owner.
Court filings in that 2022 Tippecanoe County case allege attorney Little provided in December 2018 a conflict of interest form that described a dependent relationship and commissary work to be performed by Ashley to the then-members of the Clinton County Commissioners and County Council. Court filings also contain two communication logs that allegedly detail back-and-forth, email and messaging exchanges with various elected members of Clinton County government and select employees of Clinton County government attached to some of those communications.
Currently both the Kelly’s and attorney Little are awaiting a judge’s decision on whether any of those communications must be disclosed.
Those same communications and conflict form are at issue in each of the Kelly’s 2022 criminal cases – Rokita described the criminal cases as “correlated” in his filing, the criminal charges relating to the work done in the SBOA audit. In the criminal cases, the Kelly’s claim Special Prosecutor David Thomas has failed to turn over discovery while the Special Prosecutor has requested a change of venue. The judge in the criminal cases has yet to rule on either. The Kelly’s are each charged with four Level 6 Felony counts.
Rokita’s filing also details the monetary amount that was paid combined to Leonne LLC and Ashley, $219,634.65 – an item the SBOA stated was “improperly issued.” Those same payments were questioned by County Commissioners and County Council in the 2021 Tippecanoe County case; the judge ruled the payments were excessive. Sheriff Kelly has a pending case before the Court of Appeals seeking reversal of the judge’s ruling – this is the same appeals case the County Commissioners and County Council have required the Sheriff to dismiss before the respective Boards will sign-off on a 2023 commissary contract.
Rokita is asking for the funds to be paid back, plus the cost of the SBOA to perform the audit; the total of those two approaching $330,000. Also, Rokita alleges Clinton County has suffered “a pecuniary loss as a result of a violation of specified criminal codes” and is seeking treble damages – the amount times three. The suit for repayment comes from the Indiana Crime Victims Relief Act.
The Indiana Court of Appeals in 2023 addressed an issue of pecuniary interest in the Clinton County Commissioners appeal of an e-cigarette case originally filed by Sheriff Kelly in 2021 where a lower court judge ruled the Commissioners had exceeded its power stating, “that the Board cannot regulate by ordinance the conduct of inmates housed in the Clinton County Jail and cannot restrict the right of the Sheriff to sell or of inmates in the Clinton County Jail to purchase and use e-cigarettes and nicotine pouches that do not contain tobacco products within the confines of the Clinton County Jail.”
The Commissioners on appeal claimed Sheriff Kelly was selling the product so he and his wife could profit.
The Court of Appeals justices stated, “In their motion to correct error, the Commissioners asserted they were entitled to a relief from judgment based on newly discovered material evidence, specifically that ‘the sale of e-cigarettes was not solely for commissary revenue, but that Plaintiffs acted based upon undisclosed personal pecuniary interests.’ However, we need not consider any alleged newly discovered evidence creating a question of material fact because we have concluded the Sheriff’s Office is expressly granted the authority to control the care of prisoners in the jail under the Take Care Provision as a matter of law.”
Commissioner Jordan Brewer stated in a March 2023 interview the Board is still deciding whether to file an appeal to the Indiana Supreme Court.
In addition to those lawsuits, the Kelly’s have filed a civil claim against Clinton County Prosecutor Anthony Sommer in 2022 alleging defamation and intentional infliction of emotional distress. Prosecutor Sommer denies those allegations and has asked a Boone County court to dismiss the lawsuit; a hearing is set for April 17. Sommer is being represented by an attorney from Rokita’s office according to court documents.
The Kelly’s have 20-days to respond to the Rokita suit.
A note to the reader. Some of the legal cases mentioned in this article involve reporting and interviews conducted by journalist Brett W. Todd; the work produced might be cited as part of specific case litigation filed by various parties in those respective cases.
