Scott County, Minnesota: November 22, 2025] In a dramatic turn that underscores the ripple effects of one of Indiana’s largest public corruption scandals, former Scott County Sheriff Kenneth Hughbanks pleaded guilty to felony tax evasion on November 21, 2025, dodging prison time but facing over two years of probation and $13,200 in back taxes. The 44 year old ex lawman, once a close associate of disgraced ex Clark County Sheriff Jamey Noel, admitted to failing to report nearly $3,00,000 in unreported income from consulting fees and family funds, crimes uncovered during the Noel investigation but unrelated to it. As Special Prosecutor Ric Hertel wraps up a probe that has felled five defendants, including two sheriffs, Hughbanks, sentencing serves as a stark reminder, Crime probably doesn’t pay”. With ties to GOP politics and a brief stint as county Republican chair, this case highlights accountability in Southern Indiana’s law enforcement circles.
From Arrest to Guilty Plea, The Timeline of Hughbanks, Tax Evasion Scandal:
Hughbanks’ downfall traces back to April 2025, when Indiana State Police arrested him at his Scottsburg home on a Level 6 felony tax evasion charge. The probe, led by Lt. Jeffrey Hearon, revealed he and his wife, Lyndi, underreported $2,14,700 in income from 2018 to 2022, including $1,40,000 withdrawn from his ailing godmother’s bank account after gaining power of attorney. Authorities also alleged $30,000 to $40,000 in unreported sales tax from selling tools, bikes, and equipment at a Main Street store in Scottsburg between 2019 and 2021.
His connection to Jamey Noel, convicted in October 2024 of 27 felonies including theft and money laundering, and sentenced to 12 years, proved strong judgement. Hughbanks, a long-time Clark County Sheriff’s Office employee and consultant via “Hughbanks Enterprises”, pocketed $2,80,067 from Noel’s jail commissary fund for vague “consulting” from 2015 to 2022. An administrative assistant testified she tried issuing him a 1099 form, but Noel allegedly instructed her not to, missing 2018 records fueled suspicions.
Hughbanks pleaded not guilty on April 22, 2025, with pretrial set for June 10 and trial for July 7. But on October 2, he filed to change his plea, cooperating fully with investigators. Friday’s hearing in Scott County Circuit Court sealed the deal, Guilty on the single count, with all investigations now closed.
No Prison, But a convictions Price, Probation, Restitution, and Broader Implications
Scott County Judge Jason Mount sentenced Hughbanks to 908 days (over 2.5 years) of probation, all suspended plus $13,200 in restitution to the Indiana Department of Revenue. No fines or community service were imposed, but the felony conviction bars him from future law enforcement roles and GOP leadership, positions he held as Scott County Republican chair during his 2018 sheriff appointment.
Hertel, who prosecuted the Noel saga, emphasized Hughbanks’ cooperation, “This has nothing to do with the Noel investigation, this is the money he received from a relative”. Yet, the case emerged from Noel’s shadow, a high ranking Clark official claimed Noel’s “vast political influence” secured Hughbanks’ sheriff post after Dan McClain’s 2018 exit to U.S. Marshal. Hughbanks served eight months, opting out of the 2018 election.
The scandal’s web ensnared Noel’s family too, Wife Misty got 18 months for theft and tax evasion, daughter Kasey, nine months plus probation. One more defendant, ex-Clark Councilman John Miller, fights conflict of interest charges. Hertel, handling all Noel related cases, told WAVE3, “We’ve prosecuted six people, five convicted two former sheriffs”.
Key Dates in Hughbanks Tax Evasion Case: April 2018, Details: Appointed Scott County Sheriff via Noel ties, serves 8 months
Key Dates in Hughbanks Tax Evasion Case: 2015-2022, Details: Receives $280K+ from Clark commissary for “consulting”.
Key Dates in Hughbanks Tax Evasion Case: April 17, 2025, Details: Arrested on felony tax evasion; posts $5K bond.
Key Dates in Hughbanks Tax Evasion Case: April 22, 2025, Details: Pleads not guilty, pretrial June 10, trial July 7.
Key Dates in Hughbanks Tax Evasion Case: October 2, 2025 Details: Files to change plea to guilty.
Key Dates in Hughbanks Tax Evasion Case: November 21, 2025 Details: Pleads guilty, sentenced to 908 days probation, $13,200 restitution.
Fallout from the Jamey Noel Corruption Empire, A Sheriff’s Downfall and Lessons for Indiana
Hughbanks’ saga spotlights the Noel probe’s scope, Over $3 million allegedly siphoned from Clark County and Utica Fire for Noel’s luxuries, including child support outside marriage. Court docs revealed Hughbanks refused tax forms, and 2018 commissary records vanished. Though unrelated, the tax evasion “wouldn’t have been discovered” without Noel’s scrutiny, per investigators.
Public reaction on X and local forums decries “good ol’ boy” networks in Southern Indiana GOP, with users like @IndyCrimeWatch calling it “another badge tarnished”. Hertel warns it’s a deterrent, “The idea is crime probably doesn’t pay”. As the last Noel case pends, this guilty plea closes a chapter, but erodes trust in Hoosier sheriffs.
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