2 in Muncie indicted in federal investigation for fraud, making false statements

MUNCIE, Ind. (WISH) – Two people in Muncie have been taken into custody and have been indicted in connection to a federal investigation.

According to the U.S. District Attorney, 44-year-old Debra Grigsby and 60-year-old Tony Franklin were both arrested Tuesday morning.

Grigsby, who has been the Muncie Sanitary District’s Administrator since 2013, is accused of using her position to steer contracts for work to Franklin’s business, Franklin Business and Design, in exchange for kickback payments.

Both Grisby and Franklin have been charged with conspiracy to commit wire fraud, wire fraud, making false statements and falsification of documents in a federal investigation.

The district attorney’s office said their arrests are part of an ongoing FBI and IRS investigation into the kickback payments in exchange for public works projects and other corruption-related issues in Muncie.