Indicted Evansville Pigeon Township trustee will resign amid fraud accusations

EVANSVILLE — Pigeon Township Trustee Mariama Wilson will resign her position at the end of this month, the chair of the Vanderburgh County Democratic Party confirmed Thursday.

Wilson's resignation comes after federal prosecutors accused her of bilking at least $19,000 in funds intended to support the township's homeless shelter.

In the weeks since Wilson's indictment in late April, party and township officials largely kept quiet about the local social justice activist's alleged role in a so-called "kickback scheme" and did not publicly push for her ouster.

Cheryl Schultz, Democrat chair, said a caucus will take place at a later date to fill Wilson's position. Pigeon Township's designee, the person slated to take over in the interim, is the township's board president Ruby McGlown.

More: Judge's ruling raises fresh questions about Pigeon Township trustee's continued role

Wilson, who unseated longtime trustee Mary Hart in the 2018 primary and ran unopposed in the 2018 and 2022 general elections, faces fives counts of wire fraud and conspiracy to commit wire fraud in U.S. District Court.

Township attorney Ryan Hatfield forwarded the Courier & Press a statement from the Pigeon Township Board noting it had been informed of Wilson's impending resignation.

"This resignation is more expedient than pursuing the removal process," the statement reads in part. "The Vanderburgh County Democrat Party is expected to organize a caucus to appoint a successor for the vacant position."

Federal prosecutors also secured indictments against Wilson's community relations director, William E. Payne, and the unlicensed contractor accused of inflating invoices in furtherance of the alleged scheme, Terrance D. Hardiman.

Wilson has remained in her position since her indictment, which Indiana law allows an elected official to do. Being accused of a crime while holding public office does not mean the official forfeits their seat.

Circuit Court Clerk Carla Hayden sent the resignation letter to the Courier & Press on Thursday. Addressed to Hayden, it's dated June 6 and contains only two sentences.

"I hereby resign as Pigeon Township Trustee, effective June 30, 2023," it reads. "It has been an honor to serve the people of this township."

The Courier & Press reached out to Wilson via email but did not hear back before publication of this article.

How does the designee role work?

Indiana Code requires a trustee to designate a person to perform their duties whenever they are unable to do so within 30 days of taking office.

Locally, those names are turned in to the Vanderburgh County Sheriff's Office. Sheriff Noah Robinson confirmed Pigeon Township listed McGlown as its designee after he specifically requested one from the office.

Since the Pigeon Township Trustee is an elected position, a caucus will need to be held to select a new township executive.

McGlown would be eligible to enter the caucus. If she were selected, she could no longer hold her position as an elected member of the township board.

More: Here's what happens when a township trustee is charged with a crime in Indiana

The Courier & Press has attempted to speak with each of Pigeon Township's board members in the weeks since Wilson's indictment. Of the three, only Connie Robinson responded to phone calls and messages. She referred all questions to Hatfield.

What happens when a new trustee is selected?

If a trustee resigns, they must give their replacement custody of funds and property of the township, according to Indiana Code.

The new trustee will then call for a special meeting of the board that must take place no more than 15 days later.

At the meeting, the board will examine records, inquire into the conduct of the office and approve "in whole or in part" records, receipts, and expenditures of the township to the date of Wilson's resignation.

The Pigeon Township Trustee makes a little more than $60,000 a year, a much higher salary than any other local township trustee. The next highest earner was Center Township's Gary Burdsall, at $47,903.

After indictment, questions swirled about Wilson’s continued role

In late April, Evansville police detained Wilson, Payne and Hardiman after the U.S. Attorney’s Office for the Southern District of Indiana announced it had secured indictments against the trio.

According to prosecutors, Wilson and Payne hired Hardiman to renovate the Dorathea MacGregor Homeless Shelter and to construct a nearby food pantry in February 2020. Over the next two years, prosecutors said Payne and Wilson accepted about $19,000 each in inflated construction funds Hardiman funneled to them.

"The defendants discussed how much the projects should cost and how much Hardiman should inflate those costs to cover the kickbacks to Wilson and Payne," a federal indictment states. "In general, the defendants agreed to inflate the total cost in each invoice by $1,000 to $2,000."

To avoid being booked into jail, Wilson, Payne and Hardiman agreed to abide by a set of pretrial release conditions which, in part, bar defendants from communicating with potential witnesses who could be compelled to testify at a future trial.

After signing the agreement, Wilson continued to, at times, work from the Pigeon Township Trustee's Office in person, despite U.S. District Court Judge Matthew P. Brookman describing the township's employees as "potential witnesses" and the township itself as "an alleged victim.”

Brookman’s findings were detailed in a May order he issued that barred Payne, who was fired by the township April 28, from returning to work there after Payne petitioned the court to modify the conditions of his pretrial release agreement.

The ruling raised questions about Wilson's continued ability to serve as trustee without coming into contact with potential witnesses and thus violating her own pretrial release agreement.

Hardiman pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering May 5, according to court records, and is scheduled to be sentenced June 27 at 2 p.m.

Both Wilson and Payne have pleaded not guilty. A trial is tentatively scheduled to begin July 10 at 10 a.m.

This article originally appeared on Evansville Courier & Press: Evansville Pigeon Township trustee will resign amid fraud accusations