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Response to Charges Against Former Bond Bank Employees

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Indianapolis, IN | July 20, 2018

In 2017, Director Riordan discovered possible evidence of fraud or abuse in the Bond Bank’s payroll and benefit records beginning as far back as 2008. Director Riordan immediately terminated the employees she had reason to believe were involved and notified law enforcement of potential fraud on June 26, 2017. The Bond Bank made all its records available to the Marion County Prosecutor for review and worked with investigators in a year-long investigation. 

Director Riordan implemented immediate corrective action in consultation with the Bond Bank’s external auditing firm. The Bond Bank will pursue all available remedies to recover such losses. 

The alleged misappropriation does not affect bond proceeds or bond debt service payments, all of which are maintained by outside Trustee banks and are subject to annual audit and disclosure requirements.