Contractor pleads guilty in alleged Pigeon Township kickback scheme
EVANSVILLE — The unlicensed contractor who federal prosecutors indicted alongside Pigeon Township Trustee Mariama Wilson and one of her aides pleaded guilty in federal court Friday to conspiracy to commit wire fraud and money laundering.
The contractor, Terrance D. Hardiman, was allegedly hired by Wilson and the township to renovate a homeless shelter and construct a food pantry. Prosecutors accused Hardiman of funneling a portion of the funds to Wilson and her community outreach director, William Payne, in an alleged kickback scheme.
Federal officials said Hardiman is not licensed to perform contracting work in Indiana. In addition to the federal case, local prosecutors in Vanderburgh and Gibson counties accused Hardiman of defrauding customers earlier this year.
The alleged Pigeon Township scheme, according to the U.S. Attorney's Office for the Southern District of Indiana, netted Wilson and Payne about $19,000 each.
More: Pigeon Township trustee, two others indicted in alleged 'kickback scheme'
Hardiman's decision to plead guilty has not been previously reported by the media. According to federal court records, prosecutors agreed to dismiss all but two of the charges filed against Hardiman in exchange for his guilty plea.
According to the agreement, Hardiman could face a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervision after his release from prison.
The plea agreement appeared in federal court records Friday, just 10 days after prosecutors announced indictments against Hardiman, Wilson and Payne. The same day Hardiman agreed to plead guilty, the Indiana State Board of Accounts published a scathing report alleging gross mismanagement of funds at the township.
State auditors conducted their investigation in parallel − and at times alongside − local and federal law enforcement, according to U.S. Attorney for the Southern District of Indiana Zach Myers.
Wilson and Payne each face five counts of wire fraud and conspiracy to commit wire fraud. Hardiman originally faced the same charges as Wilson and Payne, in addition to one count of money laundering. He initially entered a plea of not guilty.
More: Here's what happens when a township trustee is charged with a crime in Indiana
Wilson and Payne have both pleaded not guilty, and a Pigeon Township Trustee's Office representative declined to comment on the matter Friday morning. Wilson has not returned requests for comment, nor have members of the Pigeon Township Trustee's Office Advisory Board.
What is known about the case
According to a federal indictment and state auditors, Wilson and Payne hired Hardiman in February 2020 to remodel the Dorothea McGregor Family Shelter and install a food pantry.
Federal prosecutors detailed 11 invoices paid by the township to Hardiman between Feb. 21, 2020 and May 11, 2022, which they allege Hardiman inflated for the purposes of the scheme.
"Hardiman deposited the checks and then withdrew all or nearly all the deposited amount in cash for the purpose of kicking back a portion of the proceeds to Wilson and Payne," a U.S. Department of Justice news release states. "Hardiman placed cash in an envelope and hand-delivered the envelope to Wilson or Payne. Wilson or Payne then divided the kickback."
The indictments followed a months-long FBI investigation into the township office's financial records. The investigation became public knowledge in July 2022 when FBI agents, alongside Indiana State Board of Accounts auditors, showed up at the township's Eighth Street offices.
More: FBI's visit to Pigeon Township trustee's office a surprise, lawyer says
The Indiana State Board of Accounts audit stipulates that Wilson and Payne should repay nearly $90,000 to the township and to the state.
Among the report's key findings is that Pigeon Township allegedly paid Hardiman more than $30,000 for work he never completed.
The revelation comes after multiple private customers of Hardiman's company, Hardiman Construction LLC, accused him of accepting payment for jobs he never finished. Hardiman has pending criminal cases in Vanderburgh and Gibson counties, where he stands accused of defrauding customers.
Audit: Pigeon Township trustee, employee should repay nearly $90,000
According to the State Board of Accounts, Wilson told investigators she considered "estimate" documents to be invoices. Both Wilson and Payne reportedly said that if either of their signatures appeared on an invoice or estimate, it was cleared for payment.
"During our inspection of the homeless shelter, Payne claimed that it was not his job to ensure that the work had been completed before the work was paid," the report states.
Township continues operations with Wilson still in charge
The Courier & Press contacted the Pigeon Township Trustee's Office on a recent morning, and a representative said, "We are continuing as we have."
During two afternoon visits to the township, representatives told a Courier & Press reporter Wilson had left the office for the day and could not comment.
The State Board of Accounts said auditors discussed their findings with township board president Ruby McGlown and board members Connie Robinson and Shirley Baker and Wilson on April 27.
Houston can be contacted at houston.harwood@courierpress.com
This article originally appeared on Evansville Courier & Press: Terrance Hardiman pleads guilty in Pigeon Township kickback scheme
