INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that the former Chairman for a political party in Delaware County, Indiana, Phil Nichols, and a Sergeant for the Muncie Police Department, Jess Neal, have been indicted on charges of conspiracy to commit wire fraud, wire fraud, and witness tampering. Nichols and Neal join defendants Debra Nicole Grigsby (“Nikki Grigsby”), the former District Administrator for the Muncie Sanitary District, and Tony Franklin, the owner of Franklin Building, and Design, LLC, Muncie, Indiana, who were initially indicted in July 2019 on charges of conspiracy to commit wire fraud, wire fraud, making false statements, and falsification of documents in a federal investigation.

The arrests are part of a multi-year-long and ongoing investigation by the United States Attorney’s Office and the Federal Bureau of Investigation into payment for public works projects in Muncie. The investigation has resulted in the following federal cases:

United States v. Craig Nichols, 17-CR-0021-TWP-DML

United States v. Tracy Barton, 18-CR-284-JMS-DLP

United States v. Jeff Burke, 18-CR-285-SEB-DLP

United States v. Rodney Barber, 19-CR-190-JMS-DML

United States. v. Debra Nicole Grigsby and Tony Franklin, 19-CR-231 JRS-DLP

Nichols, 73, and Neal, 53, of Muncie, Indiana, were arrested Thursday morning and will have their initial appearance Thursday afternoon in the federal courthouse in Indianapolis.



“Public servants need to serve the public instead of serving themselves,” said Minkler. “When someone betrays the public’s trust by stealing tax dollars for personal enrichment, my office will identify, investigate and, if the evidence supports a charge, prosecute the individual who violates that sacred trust.”

As set forth in the Superseding Indictment, Nichols served as the Chairman for a political party in Delaware County from approximately 1990 through approximately 1998. Though Nichols had no official leadership position or title within the political party after approximately 1998, Nichols maintained a private office at the political party’s headquarters, and continued to exert influence and control over multiple official acts performed by certain Muncie public officials.

Neal has been a long time Sergeant in the Muncie Police Department, and is also the owner of Red Carpet, Inc. and Express Properties, LLC.

“Public corruption is a significant priority for the FBI. Crimes of this nature are something we take very seriously, because those who exploit their official position for personal gain undermine public trust and confidence,” said Acting Special Agent in Charge Robert Middleton, FBI Indianapolis. “Today’s indictment and arrest of Phil Nichols and Jess Neal is just one more step in seeking to bring to justice those who have victimized the hard-working, tax paying residents of Muncie.”

According to Assistant U.S. Attorney Tiffany J. Preston who is prosecuting this case for the government, Nichols and Neal face up to 20 years’ imprisonment if convicted of all charges.

An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large- scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3.

INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that the Mayor for the City of Muncie, Indiana has been indicted on a charge of accepting a $5,000 illegal cash payment after he steered lucrative excavation work to a local contractor. The arrest is part of an on-going investigation by the United States Attorney’s Office and the Federal Bureau of Investigation into illegal payments associated with public works projects in Muncie.

"Public officials are entrusted to perform a public service and to legitimately conduct business in the best interest of the community that they represent," said Minkler. "Tyler not only betrayed the trust of his community, but violated federal law, and all in an effort to serve his own personal interests. My office intends to prosecute Tyler to the full extent of the law."

Mayor Dennis Tyler, 76, of Muncie, Indiana, was arrested at his home Monday morning, November 18, 2019, and had his initial appearance that same afternoon in the federal courthouse in Indianapolis. He has served as Muncie’s Mayor since he was elected to that position in 2012. As Mayor, Tyler has authority over supervising subordinate officers, signing bonds, deeds, and contracts of the city, approving licenses issued by the city, and overseeing Muncie’s departments and agencies.

"Public corruption is the top criminal investigative priority for the FBI. It erodes public confidence and undermines the strength of our democracy," said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. "There is a growing intolerance by the American people of public corruption, an intolerance reflected in the willingness to come forward and report abuse of public office. We are always grateful for those who report corruption. That information is critical to our work."

The arrest is part of a multi-year and on-going investigation by the Federal Bureau of Investigation and the Internal Revenue Service into the payment of kickbacks in exchange for public works projects and other corruption-related matters in Muncie that have resulted in the following federal cases:

United States v. Craig Nichols, Former Building Commissioner, 17-CR-0021-TWP- DML, pleaded guilty to wire fraud and money laundering, sentenced to 24 months in prison.

United States v. Tracy Barton, Former Superintendent of Sewer Maintenance, 18-CR- 284-JMS-DLP, set for jury trial on April 3, 2020.

United States v. Jeff Burke, Local Business Man, 18-CR-285-SEB-DLP, set for jury trial on Oct. 28, 2020.

United States v. Rodney Barber, Local Contractor, 19-CR-190-JMS-DML, set for jury trial on March 13, 2020.

United States v. Debra Nicole Grigsby and Tony Franklin, District Administrator of Muncie Sanitary District and Local Contractor, 19-CR-231-JRS-DLP, set for jury trial Feb. 10, 2020.

According to Assistant U.S. Attorney Tiffany J. Preston, who is prosecuting this case for the government, Tyler faces up to 10 years’ in federal prison if convicted of the charge.

An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3.

INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Debra Nicole Grigsby (“Nikki Grigsby”), the District Administrator for the Muncie Sanitary District, and Tony Franklin, the owner of Franklin Building, and Design, LLC, have been indicted on charges of conspiracy to commit wire fraud, wire fraud, making false statements, and falsification of documents in a federal investigation. 

Grigsby, 44, Muncie, Indiana, and Franklin, 60, Yorktown, Indiana, were arrested this morning without incident and will have their initial appearance this afternoon at the federal courthouse in Indianapolis.

The arrests are part of a multi-year and on-going investigation by the Federal Bureau of Investigation and the Internal Revenue Service, into the payment of kickbacks in exchange for public works projects and other corruption-related matters in Muncie that have resulted in the following federal cases:

United States v. Craig Nichols, 17-CR-0021-TWP-DML

United States v. Tracy Barton, 18-CR-284-JMS-DLP

United States v. Jeff Burke, 18-CR-285-SEB-DLP

United States v. Rodney Barber, 19-CR-190-JMS-DML

“Public servants need to serve the public instead of serving themselves,” said Minkler. “When someone betrays the public’s trust by stealing tax dollars for personal enrichment, my office will identify, investigate and, if the evidence supports a charge, prosecute the individual who violates that sacred trust.”

Grigsby has served as Muncie Sanitary District’s District Administrator since 2013, and was responsible for approving the selection of contractors to perform work on Muncie Sanitary District infrastructure projects. The indictment alleges that Grigsby abused her position of public trust and agreed to steer contracts for work arising out of infrastructure projects for the Muncie Sanitary District to Franklin, the owner of Franklin Building and Design, LLC, in exchange for kickbacks.

“The indictment and arrest of these two individuals is one more step in an ongoing investigation to identify any and all public officials or private citizens who have committed federal crimes and victimized the tax paying citizens of Muncie, Indiana,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “Investigating public officials who exploit their official position for personal gain and erode the public’s confidence in government is one of the FBI’s top criminal priorities and is the sole purpose of the Indiana Public Corruption Task Force.”

According to Assistant U.S. Attorney Tiffany J. Preston who is prosecuting this case for the government, Grigsby and Franklin face up to 20 years’ imprisonment if convicted of all charges.

An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court. 

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan  5.3