The Journal Gazette
Saturday, April 30, 2016 4:32 am

Swindle works; town out $50,000

Jeff Wiehe | The Journal Gazette

Someone using an email scam finagled $50,000 out of the city of Kendallville this month.

Now police are investigating the scam by someone impersonating the mayor that ensnared the city clerk-treasurer, according to city officials who released the details Friday. 

On April 20, Kendallville City Clerk-Treasurer Sheryl Hanes contacted local police about a scheme that resulted in the city’s loss of $48,500, according to a statement from the city. The day before, someone sending emails that appeared to be from the mayor directed the city clerk to pay consulting fees to a company using a bank account in California. 

The emails directed the clerk to wire the money into the account no later then the end of the business day. Those emails led to Hanes directing the money to be transferred, according to the city’s statement. That night, Hanes realized the emails were not from the mayor, the statement said. By then, however, the money transfer had been completed.

Attempts to retrieve the funds by the city’s financial institution were unsuccessful.

Kendallville Police are investigating what happened as cyber fraud. Detectives have obtained subpoenas, with the assistance of the Noble County prosecutor, for records pertaining to the account the money was wired into. They are also tracing emails and have called in help from the Indiana State Police’s cyber unit as well as agents from the FBI, the city’s statement said.

Share this article

Email story

Subscribe to our newsletters

* indicates required