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Man arrested for corrupt business practices, writing over $300,000 in fraudulent checks

A mugshot of John Gibbs. (Provided Photo/Indiana State Police)

SCOTTSBURG, Ind. (WISH) — A Scottsburg business owner was arrested Friday and is facing several felony charges after an Indiana State Police investigation that started in March.

In March, a business vendor contacted Detective Tim Denby with the ISP Special Investigations Section. The vendor alleged that 57-year-old John Gibbs, owner of Gibbs Innovate Manufacturers Inc., was committing fraudulent business practices.

Scottsburg is in southern Indiana, about a half hour north of Louisville.

The vendor told investigators that Gibbs apparently paid for services rendered with a fraudulent check for over $10,000. Denby learned later through investigation the check was written on a day Gibbs closed the associated checking account.

During the investigation, Denby learned of multiple other vendors who were owed large payments by Gibbs’ company for work completed at the factory in Scottsburg. Those vendors included various contractors in southern Indiana and a locally based financial institution.

The amount of fraudulent or stolen monies totaled more than $302,000.

Investigators obtained an arrest warrant, and Gibbs was taken into custody at his home in Simpsonville, Kentucky.

Gibbs is facing felony charges for seven counts of fraud, seven counts of theft, and one count of corrupt business practices. He was also arrested on related warrants from Kentucky, Tennessee, and Georgia.