Pigeon Township trustee, two others indicted in alleged 'kickback scheme'
EVANSVILLE — Federal prosecutors charged Pigeon Township Trustee Mariama Wilson and two others with wire fraud Wednesday after a months-long investigation into the township's books revealed what officials called a "kickback scheme."
Zach Myers, U.S. Attorney for the Southern District of Indiana, unveiled the charges against Wilson, 50, at a news conference Wednesday afternoon. The indictments accuse Wilson and her community relations coordinator, William Payne, 49, of conspiring with 32-year-old construction contractor Terrance D. Hardiman.
Wilson and Payne each face five counts of wire fraud and conspiracy to commit wire fraud. The same charges are leveled against Hardiman, who also faces a count of money laundering.
Wilson's alleged role in an illegal kickback scheme stands in stark contrast to her public image as a progressive activist focused on improving the lives of Evansville's inner-city residents. According to prosecutors, the kickback scheme siphoned thousands of dollars in funds away from a local homeless shelter.
Wilson, Payne and Hardiman deny the charges, according to Myers.
The investigation into the township office began last summer. Pigeon Township Office attorney, state Rep. Ryan Hatfield, previously told the Courier & Press that Wilson has "nothing to hide."
Attorney Jeffrey A. Baldwin is listed in federal court records as Wilson's defense attorney.
Between Tuesday afternoon and Wednesday morning, police arrested all three defendants, Myers said. Wilson, Payne and Hardiman were arraigned in federal court, pleaded not guilty to their charges and were released under pretrial monitoring.
What authorities claim happened
According to a federal indictment unsealed Wednesday, Wilson and Payne hired Hardiman in February 2020 to remodel the Dorothea McGregor Family Shelter and install a food pantry. In exchange, authorities claim Hardiman agreed to "kick back a portion of the funds that he received from the trustee's office to Wilson and Payne."
Hardiman inflated the cost of each invoice by about $1,000 to $2,000, the indictment states. Between February 2020 and May 2022, that allegedly netted about $38,000 for Payne and Wilson: or about $19,000 each.
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"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," the release states. "Hardiman placed cash in an envelope and hand-delivered the envelope to Wilson or Payne. Wilson or Payne then divided the kickback."
Neither Hardiman nor his company, Hardiman Construction LLC, were licensed to perform contracting work in Indiana, according to the indictment.
On Tuesday, Myers' office published a news release stating three Evansville township officials would soon face charges, sending police scrambling to make contact with Payne, Wilson and Hardiman before news of the pending indictments became public knowledge.
Their arrest follows 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.
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Wilson's indictment, in particular, could resonate widely within the broader Evansville community, given her dual role as an elected official and well-known activist. She is a Democrat who unseated longtime trustee Mary Hart in the 2018 primary, then ran unopposed in the 2018 and 2022 general elections.
Vanderburgh County Sheriff Noah Robinson described the alleged kickback scheme as "a slap in the face to the community in which we live."
Myers characterized Wilson's actions as a betrayal of public trust: "Inflated invoices and kickbacks rob the taxpayers of their hard-earned money and damage the trust citizens are entitled to have in their government."
If convicted, Wilson, Payne and Hardiman face up to 20 years in federal prison and up to three years of supervised release.
Attorney previously said Wilson had 'nothing to hide'
When FBI agents first showed up at the Pigeon Township offices on July 8, they released few details about what the investigation entailed, only going so far as to say it centered around "spending irregularities" in the township's books.
Hatfield, who serves as an attorney for the Pigeon Township Trustee's Office, said the State Board of Accounts had informed Wilson it planned to perform a routine audit but instead showed up with investigators.
At the time, Hatfield, said "we anticipate authorities will find no wrongdoing."
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And though Wilson and her staff could have invoked their right to counsel or declined to talk, Hatfield said in July that they submitted to interviews and provided documents to investigators without a lawyer present.
"We believe, based on those interviews that the trustee's office employees voluntarily gave, that this was a fishing expedition started by a disgruntled former employee."
Hatfield declined to name the former employee or explain what their supposed grievance may have been. Hatfield did not responded to an additional request for comment as of Wednesday afternoon.
Trustee had garnered praise for gun violence work
In addition to Wilson's role as an elected official, she also leads the Evansville chapter of Mothers Against Senseless Killing, an advocacy group which aims to prevent gun violence by building stronger communities.
Members hold vigils for victims of gun violence, host block parties and patrol their neighborhoods with evening walks.
Wilson has been a prominent voice in Evansville for years, but her role as an activist became even more personal when her son was seriously injured in a shooting while walking home in 2020.
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Prior to the announcement of her indictment, Wilson had been scheduled to attend a Mothers Against Senseless Killings sit-out event, which was scheduled to run from 6:30 p.m. to 8 p.m., according to the group's Facebook page.
Among those arrested Tuesday, Wilson is not alone in her activism. Payne, a local pastor, is also well known for his social justice work and efforts to improve blighted Evansville neighborhoods.
Payne was one of the first advocates to aid tenants of Woodland Park Apartments, a South Side complex plagued with issues and alleged mismanagement. In 2020, Payne drafted a petition calling for the city to hold Woodland leadership accountable for what he described as unsafe living conditions. The petition garnered more than 500 signatures.
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In 2019, Payne created an online Facebook fundraiser — The Community Bond Project — to help raise bond money for individuals arrested for non-violent crimes. He was also active with the Social Justice Network and has advocated for lower utility bills and spoken about racial injustice more broadly.
Construction contractor previously accused of fraud
Earlier this year, law enforcement agencies in Vanderburgh and Gibson counties accused Hardiman of defrauding customers who paid tens of thousands of dollars for contracting work.
In January, the Vanderburgh County Prosecutor's Office charged Hardiman with fraud resulting in a loss of between $750 and $50,000, a Level 6 felony, in addition to theft and criminal mischief charges.
Hardiman was arrested and subsequently released from the Vanderburgh County jail after posting a $500 cash bond. A jury trial in the case is scheduled to begin Sept. 27.
And in early February, Gibson County prosecutors charged Hardiman with one count of theft where the value of property is between $750 and $50,000. A trial date has yet to be set, according to court records.
Where the case goes from here
When Wilson made her initial appearance, she waived the right to have her indictment formally read in court. Magistrate Judge Matthew P. Brookman ordered Wilson released, pursuant to a list of conditions, until she can face trial.
The court ordered Wilson to appear in federal court July 10 at 9 a.m.
In the meantime, Wilson must hand in her passport to the U.S. Probation Office and may not leave the Southern District of Indiana unless she secures approval from her supervisor, according to a judge's order.
Wilson, Payne and Hardiman are barred from contacting each other under the conditions of their release.
State law does provide a means to remove a township trustee, though the process is arduous and would require multiple hearings, the approval of the township's board, and public meetings.
Courier & Press reporter Tom Langhorne contributed reporting for this article. Houston Harwood can be contacted at houston.harwood@courierpress.com
This article originally appeared on Evansville Courier & Press: Mariama Wilson, William Payne and Terrance Hardiman indicted by feds
