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Vigo County Schools vs. M&P Properties (Feb. 2018)
Vigo County Schools vs. M&P Properties (Feb. 2018)
Vigo County Schools vs. M&P Properties (Feb. 2018)
Clerk
Vigo County, Indiana
Plaintiff, Vigo County School Corporation (the “School Corporation”), by counsel, files
its Complaint against Defendants, M & P Properties Group, LLC (“M & P”), Michael R. Pick
(“Pick”), Franklin V. Fennell (“Fennell”), and Frank Shahadey (“Shahadey”), and in support
PARTIES
1. The School Corporation is located in Vigo County, Indiana and operates the
2. M & P is an Indiana limited liability company with its principal place of business
located at 2610 Harrison Woods Road, Terre Haute, IN 47805 in Vigo County.
3. M & P is in the business of lawn care, landscaping, tree removal, and various
4. Pick is the president and registered agent of M & P and resides at 2610 Harrison
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6. Shahadey is believed to be residing at 505 S. Banner Drive, Terre Haute, IN
47802.
7. This dispute arises from fraud committed by M & P, Pick, Fennell, and Shahadey
8. This Court has personal jurisdiction over the School Corporation, M & P, Pick,
Fennell, and Shahadey and subject matter jurisdiction over the claims and relief sought in this
case.
75(A).
FACTUAL BACKGROUND
10. In early 2014, M & P and Pick began to conspire with the School Corporation’s
Facilities Director, Fennell, and the deputy sheriff assigned as the School Corporation’s security
liaison who was also employed with the School Corporation as a part-time security employee,
11. Fennell, with assistance from Shahadey, selected M & P and Pick to perform
13. Without the knowledge of the School Corporation, the services stated in the
14. Furthermore, the amount in these invoices was frequently inflated well beyond
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15. Fennell then approved payment of the inflated invoices, including invoices that
16. Upon receiving the School Corporation’s payment, M & P and Pick, without the
knowledge of the School Corporation, paid Fennell and Shahadey their portion of the inflated
amount or the amount paid for work not performed as a “kickback” for awarding M & P and
17. This fraudulent scheme occurred until November 1, 2016 when Fennell’s
18. The School Corporation paid M & P and Pick over $440,000 in relation to this
scheme. Of this amount, M & P and Pick paid Fennell and Shahadey kickbacks on $402,480.
19. On November 1, 2016, the federal government filed a criminal complaint against
Fennell and Shahadey alleging violations of Title 18, United States Code, Section 666 for theft
or bribery concerning programs receiving federal funds (“Criminal Complaint”). The Criminal
Complaint was filed in the United States District Court for the Southern District of Indiana under
referred to as “Individual A.” (A true and accurate copy of the Criminal Complaint is attached
hereto and is incorporated herein by reference as Exhibit A pursuant to Indiana Trial Rule
10(C).)
21. On December 14, 2016, Fennell and Shahadey were indicted for their
22. On October 3, 2017, Shahadey entered into a guilty plea under which he plead
guilty to wire fraud and theft of government funds. (A true and accurate copy of Shahadey’s
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guilty plea is attached hereto and is incorporated herein by reference as Exhibit B pursuant to
23. Shahadey’s plea agreement requires Shahadey to pay restitution to the School
Corporation in the amount of eighty thousand five hundred dollars ($80,500) for his fraud.
25. On December 14, 2017, Fennell was found guilty of wire fraud and theft of
government funds, among other charges. (A true and accurate copy of Fennell’s guilty verdict is
attached hereto and is incorporated herein by reference as Exhibit C pursuant to Indiana Trial
Rule 10(C).)
27. Pick testified during Fennell’s trial and admitted to his involvement in the
scheme. Pick testified at trial that Fennell directed him to inflate invoices and create “fake
28. Fennell also directed a large amount of work to Pick that otherwise would have
29. Pick is estimated to have personally received more than $95,000 under this
30. Pick has not only made fraudulent misrepresentations to the School Corporation,
but he also used M & P to perpetuate a fraud upon the School Corporation.
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32. Defendants, in a joint venture and in furtherance of their criminal conspiracy,
knowingly and intentionally made false and misleading statements of fact to the School
Corporation. This includes inflated invoices, invoices for work not completed, and invoices for
work completed that should have been performed by School Corporation employees.
33. Defendants knew the statements and invoices were false, and/or made these
statements recklessly without knowing whether the statements and invoices were true or false.
34. Defendants made these misleading written statements with the intent to cause the
School Corporation to issue payment to M & P and Pick, directly, and Fennell and Shahadey,
indirectly.
35. The School Corporation justifiably and reasonably relied and acted upon
5-3, for which the School Corporation is entitled to recover actual and statutory damages,
punitive damages, attorneys’ fees and costs, and other statutory remedies pursuant to Ind. Code §
34-24-3-1.
COUNT II – THEFT
39. As of this date, and despite Defendants knowing payment to the School
Corporation is due, Defendants continue to retain possession of the School Corporation’s money.
knowingly and intentionally exerted unauthorized control over the School Corporation’s money
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when they falsely created, had approved, and were paid for illegitimate invoices for property care
41. Defendants acted with the intent to deprive the School Corporation of its property,
which is demonstrated by Defendants’ elaborate scheme to win work that was unnecessary or
inflated in costs and their continued refusal to return the money to the School Corporation.
violation of Ind. Code § 35-43-4-2, for which the School Corporation is entitled to recover actual
and statutory damages, punitive damages, attorneys’ fees and costs, and other statutory remedies
44. As of this date, and despite Defendants knowing that they unjustly possess School
Corporation funds, Defendants continue to retain possession of the School Corporation’s money.
knowingly and intentionally exerted unauthorized control over the School Corporation’s money
when they falsely created, had approved, and were paid for illegitimate invoices for property care
violation of Ind. Code § 35-43-4-3, for which the School Corporation is entitled to recover actual
and statutory damages, punitive damages, attorneys’ fees and costs, and other statutory remedies
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WHEREFORE, Plaintiff, Vigo County School Corporation, by counsel, respectfully
requests that this Court enter judgment in its favor and against Defendants, M & P Properties
Group, LLC, Michael R. Pick, Franklin V. Fennell, and Frank Shahadey, jointly and severally,
a. monetary damages;
JURY DEMAND
Plaintiff, Vigo County School Corporation, by counsel, pursuant to Indiana Trial Rule
Respectfully submitted,
/s/Jonathan L. Mayes
Jonathan L. Mayes (#25690-49)
Tyler J. Moorhead (#34705-73)
3322140
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EXHIBIT A
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 1 of 19 PageID #: 360
EXHIBIT B
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 2 of 19 PageID #: 361
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 3 of 19 PageID #: 362
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 4 of 19 PageID #: 363
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 5 of 19 PageID #: 364
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 6 of 19 PageID #: 365
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 7 of 19 PageID #: 366
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 8 of 19 PageID #: 367
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 9 of 19 PageID #: 368
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 10 of 19 PageID #: 369
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 11 of 19 PageID #: 370
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 12 of 19 PageID #: 371
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 13 of 19 PageID #: 372
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 14 of 19 PageID #: 373
Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 15 of 19 PageID #: 374
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Case 2:16-cr-00028-JMS-DML Document 83 Filed 06/23/17 Page 19 of 19 PageID #: 378
Case 2:16-cr-00028-JMS-DML Document 134 Filed 12/13/17 Page 1 of 2 PageID #: 740
EXHIBIT C
Case 2:16-cr-00028-JMS-DML Document 134 Filed 12/13/17 Page 2 of 2 PageID #: 741