Prosecutor releases sentencing details in Land Bank fraud case
INDIANAPOLIS (WISH) – A former assistant director of Metropolitan Development for the City of Indianapolis was sentenced for his role in the Land Bank fraud case.
U.S. Attorney Josh Minkler said that 37-year-old Reginald Walton was sentenced to nine years and must pay $250,000 to the court.
Randall K. Sargent and David Johnson were all involved with giving kickbacks to Land Bank employees in exchange for steep discounts on city owned properties included in the Land Bank, according to court documents. The Land Bank is used to acquire vacant and tax-delinquent properties and sell them to both non-profit and for-profit real estate developers.
Prosecutors say that Walton and Johnson accepted bribes and “kick-backs” to facilitate fraudulent property sales and then sell the non-profit entities to for-profit businesses. They would then receive payments from the non-profit organizations from the proceeds of the sales.
Walton and Johnson were both found guilty of multiple fraud and bribery charges in the scheme.