SCOTTSBURG – Kenneth Hughbanks, a former Scott County Sheriff with ties to the ongoing investigation surrounding former Clark County Sheriff Jamey Noel, was arrested Thursday morning and charged with multiple felony counts, including tax evasion.
Hughbanks, who briefly served as Scott County Sheriff for eight months in 2018, was booked into the same jail he once oversaw. He was released after posting a $5,000 cash bail, spending less than 45 minutes in custody.
The charges stem from an investigation led by Indiana State Police Lieutenant Jeffrey Hearon, the lead investigator in the Jamey Noel case. According to a probable cause affidavit sworn to by Hearon, Kenneth Hughbanks and his wife, Lyndi, allegedly used funds from bank accounts “for their own purposes” between 2019 and 2021, and Kenneth failed to report this income on his state taxes. Investigators estimate that this unreported income is at least $214,700 over five years. While Lyndi has not been charged, the investigation into their finances is ongoing. Notably, state police have also asserted in court documents that commissary records from the Clark County Sheriff’s Office for 2018 are missing.
Further allegations include that Kenneth Hughbanks sold numerous tools, bikes, and other items from a building on Main Street in Scottsburg between 2019 and 2021, and failed to collect or remit the required sales tax. The total amount is estimated to be between $30,000 and $40,000.
The third felony charge against Hughbanks is for allegedly failing to provide business records to Indiana Department of Revenue agents.
The arrest further intertwines Hughbanks with the Jamey Noel investigation. During his tenure as Clark County Sheriff, court documents revealed earlier this year that Noel paid Hughbanks over $262,000 for purported consulting work between March 2015 and October 2022, utilizing funds from the Clark County Sheriff’s Office jail commissary.
Adding another layer of scrutiny, a search warrant detailed information obtained by Lt. Hearon, suggesting that Kenneth Hughbanks is not an Indiana Law Enforcement Academy graduate. The warrant also noted that a high-ranking official within the Clark County Sheriff’s Office indicated Hughbanks likely secured the Scott County Sheriff appointment due to his association with Jamey Noel.
Kenneth Hughbanks’ first court hearing is scheduled for Tuesday at 1:30 p.m. in Scott County Circuit Court. Scott County Circuit Court officials have confirmed that Ric Hertel will serve as the special prosecutor for this case, as he has been appointed to handle all legal matters related to the Jamey Noel investigation.
A Probable Cause Affidavit outlines the initial findings and allegations that led to an arrest. Criminal charges are merely accusations, and the defendant is presumed innocent until proven guilty in a court of law.
