Special Report: Indy Eyesore

INDIANAPOLIS (WISH) - The Keystone Towers were once an upscale apartment complex, the home of professional athletes and up-and-comers. The towers, which sit on the main highway between Indianapolis and Fishers, have deteriorated to the point of blight. They are infested with rats, human feces. Sometimes the homeless take up residence there as well.

The towers' story is one of crime, filth and a tug of war between a controversial developer and Indianapolis officials, who want the towers fixed or torn down.

Mike Patrick works at Sheet Metal Local 20. His office sits directly across from the Keystone Towers. He's witnessed multiple crimes and his office manager, Barb Hartl, was robbed at gunpoint at a nearby bank.

"I walked in, someone had pushed me in the corner and stuck a gun to my stomach," recalled Hartl.

Hartl was lucky she wasn't injured, or worse.

Just last year, a nearby National City Bank was robbed four times. Now, a chain-link fence surrounds the bank. Cameras scan the parking lot and there are two sets of doors to keep bad guys out.

The towers are a magnet for crime. Police have investigated everything from a carjacking, to arson, to burglary. It's filthy too.

"Several of the floors were filled with litter and waste, who knows what," said IMPD Sgt. Mark Dorsey. "Just the smell, there's some places you can't even go in and stay very long."

Sgt. Dorsey cleared vagrants out of the towers as recently as December. The Marion County Health Department visits the towers regularly too. They've found broken toilets, electrical problems, leaks, flaking paint and mold.

Dana Reed with the health department said, "It's very frustrating. We wish we could do more. This is our city too."

The answers to who is responsible for the Keystone Towers, and why something can't be done about the place, are shocking. Not only is the place dirty and dangerous, if you're a Marion County taxpayer, it's costing you money.

Documents compiled by investigators show the building has been owned by a number of people, most recently Southeastern Partners of Hickory, North Carolina. But investigators believe the problems of Keystone Towers can be traced to one man, Jorges Newberry, who they say bought the towers in 2003 and then abandoned it.

Indianapolis Housing Agency Executive Director Bud Myers said, "What Jorges has done is take money off the top, put it in his pocket and moved on to other communities, other cities, other states,"

Marion County Deputy Prosecutor David Wyser is reviewing charges, including welfare and mortgage fraud against the Newberry. He believes it's all part of a scam.

"They buy these properties, they obtain loans, they default on these loans. They take all the money, they leave and they leave it in foreclosure -- then transfer title. They obtain payments through HUD programs even after the property has been sold," explained Wyser.

Records show Jorges Newberry defaulted, and the property was sold at a sheriff's sale in 2006. Records also show he's facing lawsuits from people who say he owes them money for work they did there.

But there's one more victim in this story, the taxpayer. The back taxes on the Keystone Towers go back years and total a whopping $786,584

"It's a drain on our economy, it's a drain on Marion County taxpayers and on the city as well," said Wyser.

Wyser added that he believed it could take years before there are any changes at the Keystone Towers. Just sorting through all the paperwork and tracking down the people involved takes a lot of time. All of the certified mail sent to Newberry has been returned unopened. But all of the officials who spoke with 24-Hour News 8 regarding this story say they are determined to keep working on the Keystone Towers problem.

24-Hour News 8 was able to contact Jorge Newberry last month in Dayton, Ohio. He basically said it's not his problem and he denied all charges against him. The current owner, Mark Wilson of Southeastern Partners, said he wouldn't comment on the investigation without his lawyer.