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Elwood Mayor Resigns After Allegations Of Misuse Of Campaign Funds

Last updated on Friday, February 20, 2015

(ELWOOD) - The Elwood mayor has quit following an investigation by state police into his campaign-fund spending.

RTV6's Jack Rinehart confirmed that Elwood Mayor Ron Arnold has resigned from his post.

In April of 2014 Indiana State Police detectives were looking into Arnold's alleged misuse of campaign funds to pay for personal expenses.

Arnold was accused of using the funds to pay for things such as utility bills and personal out-of-state trips.

His campaign finance records showed roughly $7,000 in spending for cellphone service and nearly $4,000 for cable TV. The records also show roughly $1,400 was paid to hotels in Los Angeles, Kentucky and Tennessee.

When Arnold took an overseas economic development trip, he went so far as to bill Elwood taxpayers for hotel room videos, chewing gum and breath mints.

ISP investigators recommended in October that the Madison County prosecutor file criminal charges against Arnold. As part of Arnold's resignation, those charges will be dropped.

Thursday morning, Arnold released an official statement about his resignation.

"...It has been the greatest professional privilege of my life to serve as mayor of my hometown. While I fully intended to fufill my term as mayor, opportunities have arisen that will require me to leave office earlier than I had planned...I want to again thank all the citizens of Elwood who have entrusted me with this honor the last four years. I am truly grateful for the love and support you have shown me and my family. God bless you and God bless Elwood!"

The investigation into campaign spending began after Elwood police locked up three of Arnold's sons on arson charges and battery on a child. Those arrests prompted the county prosecutor to write Arnold, claiming his direct oversight of the police department created an appearance of impropriety and eroded public confidence. The prosecutor threatened Arnold with obstruction and misconduct charges.

Arnold was elected as a Republican in 2011 as mayor of the 9,000-person city roughly 30 miles northeast of Indianapolis.

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