The Mail-Journal, Volume 20, Number 15, Milford, Kosciusko County, 27 April 1983 — Page 1

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VOLUME 20

I More names in state probe of Warsaw officials

By GARY LEWIS An investigation by the Indiana State Board of Accounts into “alleged irregularities” of Warsaw city government includes a candidate in the Republican primary, a city councilman, two city government officials, and a former city administrator. According to-Warsaw Clerk-Treasurer Pamela Ward, the State Board of Accounts requested information concerning Terry Klondaris, currently serving a term as councilman and a candidate for mayor; Robert Nichols, city councilman; Sarnie Brown, Warsaw Chief of Police; Robert P. Murphy, former director of Warsaw’s HUD program and an Independent candidate for mayor; and Dick Hammond, Warsaw Park Superintendent. Last week, State Board of Accounts examiner Bud Renner confirmed that Mayor Paul E. (Mike) Hodges, City Public Works Superintendent Everette Dunkelberger and City Fire Chief Tom Burns are included in the probe. The investigation was a result of a 10-month audit of local HUD and city records. “1 can tell you who I’ve been asked to provide documentation on, but the final judgement or decision of whether or not these alleged irregularities are going to be cited in the probe rest with the State Board of Accounts,” Mrs. Ward said in an interview Tuesday morning. “I want you to understand I do not have the authority to make any statement as to what the State Board of Accounts is going to do. They have asked me to provide documentation or information on several other officials. Those officials that I’ve been*asked to provide on are Terry Klondaris, Bob Murphy, Bob Nichols, Sarnie Brown and Dick Hammond.” Mrs. Ward said the State Board of Accounts’ request does not automatically mean these men are involved in any wrongdoing — only that they are being examined for irregularities discovered during the audit. The information provided to the state board will be “reviewed and a determination will be made,” says Mrs. Ward. “Whether they will be cited or not, 1 don’t know. I do know there are certain people they are looking into and there are others they are not, ” she said. Some of the documentation she provided are recorded claims made by the individuals. “In some cases, they are actual

Chapter two of the —

Tuttle, McKinney, Hannah saga

Allegations of skimming, bribes and the deteriorating friendship between two financially powerful investors, continue to surface in part two of the Indianapolis Star’s investigation of a “full-scale” FBI probe. In the Sunday edition of The Star, Thomas M. Tuttle, 43, former manager of the Deer Creek Country Club in Deerfield Beach Fla., owned by the American Fletcher National Bank, and owner of the South Shore Golf Course in Syracuse, was further implicated in underhanded financial dealings involving former bank official Larry J. Hannah. Hannah and Frank E. McKinney Jr., American Fletcher Corp.-AFNB chairman of the board, both owned summer homes on Lake Wawasee and developed a personal friendship with Tuttle that later resulted in an agreement to hire Tuttle as overseer of the Florida country club in 1977. In February, The Indianapolis Star revealed that Hannah was fired from his post as AFC president and AFNB vice

4HHHIMMMMT ‘ m Or * IX.i-4 Ow. '..pl' i*uß M sit <-W S - • * K? - »- Ek > BdW?** > x # y ■k *=»■ a ■,. <" ,3 **' ~ u sr 14/ * |f Wm>\ * i iflr < k I v \Jtk? - x # I WB <wA B •■ > f > A ’Sal I r ..J&M* ’-v~ - ■ ’hl" 1 X i *■ / | w wE£ JI ■ X \ t ’X JT aX. \* w 1 ' Ik t hHHHHHHHHHHHHNI '••■flBBBBHBBBfl ■■BSES wLfliNHk '"- ■BB EAGLE SCOUT AWARD — Jim Doege, 17, center, received the highest award offered in Boy Scouting, the Eagle Scout, Saturday evening, April 23. The ceremoney was held in the Syracuse Scout Cabin. Doege joined Scouts in January 1377 and made his first advancement on January 11, 1977, and became a scouter. He became a Tenderfoot on February 2,1978, a Second Class Scout on July 4.1978; First Class Scout on November 29,1979; Star Scout on May 9.1989; Life Scout on December 5,1989; and on January ir, 1983, completed the requirements for the Eagle Scout award. He has held such positions as senior patrol leader, assistant senior patrol leader, den chief, historian, librarian, scribe and quartermaster. He attended the 1981 National Scout Jamboree at Fort A.P. HUI, Va. As his Eagle Scout project, Doege identified the streets for the Emergency Medical Service in the Enchanted Hills area. He also has 26 merit badges. Shown in the photo are his parents, Sharon andOrlin Doege; Doege; Scout Master Frank Krantz; and Lewis S. Immel, who was the guest speaker. (Photo by Deb Fox >

Consolidation of THE MILFORD MAIL (Est. 1888) and THE SYRACUSE - WAWASEE JOURNAL (Est. 1907)

chairman as a result of an internal investigation by the bank implicating him in a complex web of events surrounding the Deerfield Beach project. AFNB acquired the property through foreclosure in the mid-19705. The report said Tuttle “skimmed cash from the golf operations (in Florida) and used at least part of the money to bribe Florida officials.” The Star also reported on several other developments involving Tuttle. He was much more than a manager for Hannah and AFNB, the copyrighted story said. Tuttle was an investor in several AFNB projects planned in the area. In June 1982, Tuttle left Deer Creek but the arrangements made by Hannah to terminate Tuttle’s contract later “became the focus of charges and countercharges, ’ ’ The Star said. “There was considerable dispute over the why, and even more dispute over the manner, in which Hannah arranged to settle Tuttle’s management contract with Deer Creek,” The Star said.

claims. In some cases, it is information as to actions taken or followed by people which would not necessarily have a claim involved,” said Mrs. Ward. The documented evidence points to questionable actions in both official and unofficial capacities. “I would say there is some of both,” she said. “I feel it is important that whether or not anyone else is cited, whether or not there are any charges filed, I feel it is important to the public,” she added. Mrs. Ward is currently running for re-election in the primary, against Elaine Call. Because of the circumstances of the revelation, Mrs. Ward named those officials she has not been asked to provide documentation for. “There’s also several officials whose names have never been mentioned,” said Mrs. Ward. Those not involved in the probe are city councilmen Fred Helfrich, Phil Roy, and Jeff Plank (also running for mayor in next week’s primary). She also named Warsaw Cemetery Superintendent Mario Sahagun and herself, as individuals not involved in the probe. In a telephone interview last week, Renner refused to comment on the possibility others are under investigation. His office “does not want to affect the mayoral race of Warsaw.” “We will conduct our investigation and will have interviews with people involved,” he said. “This is something that’s two to two and one-half months away. It’s not going to happen tomorrow,” Renner said last week. Renner was out of his office Tuesday and was unavailable for comment concerning this latest development. Auditors began examining city records last June after Mrs. Ward, Mayor Hodges and Kosciusko County Auditor and Republican chairman Jean Northenor met with Renner. Mr§. Ward said she had misgivings with the HUD program at that time and Renner decided an immediate audit should begin. “I initially went down there in regards to the HUD program. I did not make any charges — on anyone — but I did have great concerns in many areas, not only the HUD. ” After investigating the HUD program, a city-wide audit led to “one questionable area” to another and “here we are,” said Mrs. Ward. The HUD audit has yet to be completed and is still underway.

In the bank’s investigation, The Star said Tuttle had admitted he told McKinney privately that Hannah was a secret investor in several bank-supported projects. “Tuttle, by then back at Lake Wawasee, had indeed painted a startling picture of secret deals,

Dr. C. L. Brunson to be awarded 50-year pin

Dr. Carl L. Brunson, a Syracuse dentist, will be awarded a 50-year membership pin during the keynote session of the Indiana Dental Association’s annual session, April 28-30 in Indianapolis. The Indiana dentists who are celebrating 125 years of service, will examine treatment concepts of the future. Dr, Eugene E. Brinker, Evansville, association president, will preside at the session expected to be attended by more than half of the 2,250 dentist in the state. Dr. Donald E. Bentley, Hawley, Minn., president-elect of the American Dental Association, will report on the

WEDNESDAY. APRIL 27.1983

plotting and back-stabbing,” The Star reported. “Like an episode from a primetime soap opera, the personal friendships between Tuttle and Hannah, Hannah and McKinney, and Tuttle and McKinney became a factor,” The Star said.

ADA’s comprehensive study of the future of dentistry at the keynote program on Friday, April 29. Scientific seminars, clinics and exhibits throughout the session will cover advance concepts in the treatment of temporomandibular joint problems, implants as an alternative treatment for replacing extracted teeth, first aid for teeth broken or knocked out of the mouth in accidents and bone grafts to make dentures fit more comfortably. New equipment and supplies will be displayed in more than ICO technical exhibits beginning on Thursday.

No charges filed in rabbit-breeding scam

By DEB FOX Charges will not be filed against Richard Klocke, a Syracuse businessman and former Milford resident, who allegedly swindled thousands of dollars frqm people across the midwest in a rabbit-breeding scam. Klocke, also known as Richard Kloche, operated a company, Conejo Rex Co., on SR 13 Syracuse, and has been under investigation by Indiana State Police and authorities in Michigan, Ohio and Wisconsin. He is accused of selling rabbits to investors with the promise he would buy offspring at double the market rate. However, the contracts he provided to investors did not make such a promise and the investors were trapped because they had signed the vague written agreement. Kosciusko County Sheriff Al Rovenstine stated the county became involved in the investigation last fall after receiving a complaint from a county farmer. At that time the contract was looked at, but nothing of a criminal matter could be found. After the sheriff’s department received three to four complaints a surveilance was set up on Klocke. “We never came up with anything to charge hime with,” remarked Rovenstine. Rovenstine stated that the theft of rabbit pelts last fall was not fully investigated due to the fact Klocke.wanted the police to back off. The pelts were returned and it is felt they were taken from a “rancher” to whom Klocke owed money. Even though no criminal charges on the rabbit scam will be filed, police are on the look out for Klocke due to a recent warrant for his arrest.

Another Ist place award for State Bank The State Bank of Syracuse has learned that its direct mail entry to the Indiana Bank Marketing Advertising Awards contest has been awarded a first place. Jeanne Gardiner, marketing representative, will accept the MAXI on behalf of the bank at the awards presentation today (Wednesday), in the Indianapolis Sheraton, Meridian. This is the second consecutive year the State Bank of Syracuse has won the coveted MAXI for its direct mail entry. The award-winning work and trophy will be on display in the main lobby of the bank during the first week of May.

Rotary to sponsor Bike-A-Thon

Syracuse-Wawasee Rotary Club, Inc., is sponsoring a Bike-A-Thon on May 7. The Bike-A-Thon is to raise money for Syracuse-Wawasee community service projects. The fund raiser will begin with registration at 8:30 a.m. at the Saint Andrew’s United Methodist Church, SR 13N, Syracuse. The Bike-A-Thon will begin at 9 a.m. and will entail two routes, a onemile and six-mile course which may be repeated. Prizes will be awarded to the

No injuries as fishing boat capsizes on Lake Wawasee

The first reported incident of the season occurred at 9:45 a m. Tuesday, April 26, on Lake Wawasee when a fishing boat capsized. Noone was injured. Paul Overly, 77, and Don Brown, 67, both of South Whitley, were rescued by the Kosciusko County Sheriff’s Lake Patrol officer Warren Swartz and fishermen Frank Eiermann and Barnie Renner, both of Goshen. Kosciusko County Detective Sgt. Tom Kitch stated the South Whitley men were fishing on

Klocke was picked up by New Philadelphia, Ohio, police for failure to pay a $1,231 bill at the Delphian Motor Inn. Charges of grand theft by deception were filed- He was arrested in Strasburg and was held pending a municipal court appearance. He was released on $1,500 bond but failed to appear in court on Monday, April 11. Klocke was also arrested in March by Holmes County law enforcement officials on a warrant charging him with failing to provide written disclosure documents in connection with rabbit sales. The Scam An article published by The Times-Reporter, New Philadelphia, Ohio, stated how the scam was operated. Conejo Rex Inc., Spanish for “Rabbit King,” offers rabbits at prices varying from three for $2,000 to 24 for $12,000. Prices include cages for the initial bunch of rabbits, feed trays, waterers, some feed and a book of instructions. In the sales contract, Klocke promised to buy back the offspring from the bunnies sold for $2 a pound when they reach six pounds, at his option. He says he has never exercised his option not to buy. The contract also states the rabbits must be delivered to Conejo Rex, and gave a post office box for delivery. Klocke said he picks up the rabbits in spite of what the contract says. The address, when checked out (Continued on page 2)'

North Webster should have cable television by October

By DEB FOX Cable television will be viewed by North Webster residents by October according to Mark Sanford and Dave Downey of Triax Communication Corporation, Manchester, Mo. Sanford, director of engineering and Downey, director of marketing, were present at the April 20 meeting of the North Webster town board to update the town on the cable television situation. Downey remarked Triax plans on building cable in North Webster, as well as Leesburg. The company is currently in the process of acquiring land to errect a satellite and off-air tower. Sanford added that a site has been found on the Sam Popenfoose land in the Shoe Lake area.

persons raising the most money. The first place prize includes a portable stereo while the second and third place prizes are in cash. Also random drawings will be held for a Walkman Stereo and many other prizes. Hie drawing will be held on May 28 at 10 a.m. in front of the Syracuse Library. Other prizes include a T-shirt for the riders collecting SSO or more. Sponsor sheets are available from any Rotary Club member, local schools, churches and numerous businesses.

Lake Wawasee in 10 feet of water near Macy’s Slip when one of the fishermen stood up, causing the 14-foot Sea Nymph boat to capsize, throwing both the fishermen and their equipment into the water. Swartz, who was patroling in the area, rescued one of the victims and the Goshen fishermen, who were fishing in the vacinity and saw the incident, rescued the other. Both men were reportedly cold, but notipjured.

i x. \ \ . [I I -X I I I SK I FLAGS AT HALF-STAFF — President Ronald Reagan ordered all federal agencies, including the post offices in the Lakeland communities, to fly the flag at half-staff from Thursday, April 21, until sunset on Tuesday, April 26. in honor of the Americans who died in the Beirut, Lebanon, bombing. Above, the flag at Milford's Post Office is shown, lowered in memory of those who died.

This area, according to Sanford has the lowest high intensity with no interference from other frequencies, such as telephone. Both men stated within the city limits, only three of the 24 satalite stations available could be received due to the high intensity. A demonstration was given of what cable shows could be received using a satilite dish connected behind the fire station. The representatives remarked with the Sacom 3R equipment the subscribers will receive such channels as Cable News, WGN, ESPN, USA, MSN, HBO, Showtime, PTL and CBN, to name a few. However, a separate tower will be errected to pick up any of the off-air channels from Fort Wayne, South Bend. Indianapolis channels, 4 and 2, may also be picked up. With the 150-foot off-air tower customers will be able, for an extra monthly charge, pick up any of the FM channels from the radio without any interference. In addition several of the movie channels, in particular MTV will have movies that can be picked up on the radio for a stereo effect. Next Step The next step for Triax is to contact the Northern Indiana Public Service Company and receive a pie attachment agreement. Once the agreement is received it will be a matter of drawing all utility poles where connection would be a problem and writing all pole numbers down. Downey and Sanford remarked the head-end supply is* on delivery, but will be delivered when the land is acquired. From there it will take one week to build the tower and nearby

Inside... More on Warsaw's heated battle: Why Ward told us Page 2 Interview profile of candidates Page 2

NUMBER 15

residents will be receiving cable. In addition to receiving a pole permit, permits must also be obtained for every major highway, state road and railroad crossed by cable. Before edning the presentation the men stated they will be at “every meeting for the next 'ls years.’” Acceptance Agreement Howard Bemish, board president, remarked that the board still could not sign the acceptance agreement with Triax with minor modifications. The board president stated the board has not received any information on what those minor modifications were. Downey remarked he understood the modifications dealt with seasonal subscribers,and leaving the package the way i| is, addressing the situation next year. He added that what the company wanted was a letter of acceptance stating the twon recognizes Triax as the franchise for the community. Bemish asked Downey if he could get the modifications put into writing by the May 9 meeting. Rates A- question was raised concerning the rates, and if thre would be any increases due to the change in franchise. Downey remarked the rates will remain what the town agreed on with Condor Cable, with an office in the area and a full service team. The rate schedule will be: $7.95 per month for the basic service: $16.90 per month for the basic service plus one movie channel (The Movie Channel or Home (Continued on page 2)