LOUISVILLE, Ky. (WDRB) -- A former Scott County Sheriff is facing a tax evasion charge connected to his dealings with the Jamey Noel case.
Indiana State Police confirm that Kenneth D. Hughbanks, 44, was taken into custody at 9:15 a.m. at his home. He was booked into the Scott County jail on a felony tax evasion charge.
Former Clark County Sheriff Jamey Noel is currently in prison serving a 12-year sentence for stealing millions from taxpayers through years of fraud and misconduct.
Hughbanks worked at the Clark County Jail until he was appointed in April 2018 to fill the remainder of Scott County Sheriff Dan McClain's term, when McClain was appointed U.S. Marshal of the Southern District of Indiana. Investigators suggest Hughbanks was given the appointment through his connection to Noel.
Hughbanks didn't run for office in 2018 and was rehired by Noel as the Clark County Sheriff's Operations Corrections Commander. He resigned in 2019 but remained at the sheriff's office as a paid consultant through Hughbanks Enterprise LLC.
An investigation by Indiana State Police, the Indiana State Board of Accounts and the Indiana Department of Revenue found that Hughbank's consultant fees were paid out of the Clark County Sheriff's Office Commissary Fund by Noel.
A review of the commissary fund payments found Hughbanks and his related businesses were paid $280,067 from March 2015 to Oct. 2022, according to the affidavit. The document said an administrative assistant gave a statement that she tried to give Hughbanks a 1099 form to pay taxes, but he refused to accept it. After going to Noel, the assistant said the former sheriff told her not to provide Hughbanks with the tax documents.
In previous reporting by WDRB, Indiana Attorney General Todd Rokita filed a complaint in April 2024 to attempt to get public funds back from Noel. that filing included a request for public funds that were paid to Hughbanks and his companies.
According to court documents, funds from the Clark County Sheriff's Department Jail Commissary Fund were paid to one of Hughbanks' companies - Hughbanks Enterprises, LLC - ranging from $1,500 to $3,500 per month, from December 2015 to October 2022.
Because of the misspending of the Jail Commissary Fund, Noel was asked to pay back nearly $500,000, and Hughbanks was asked to pay back almost $300,000.
Jamey Noel investigation and arrests
The investigation into Noel brought a string of arrests, charges and sentences for a web of suspects involved in Noel's theft and fraud.
Jamey Noel's daughter, Kasey Noel, was sentenced in Jan. 2025 to nine months in prison after pleading guilty to theft and tax evasion.
In addition, Jamey Noel's now estranged wife, Misty Noel, and John Miller, friend and former Clark County Council member, are both headed to trial, all charged as associates or beneficiaries of Noel's schemes.
In February, Brittney Ferree, mother of one of Jamey Noels' children and a former Clark County Council member, was sentenced to two years probation.
In addition to his duties as sheriff, Jamey Noel also ran New Chapel EMS and the Utica Township fire protection district. Prosecutors said he used the fire and ambulance service agencies' bank accounts as his own, buying cars, planes, basically whatever he wanted for himself and loved ones.
He pleaded guilty to 27 felonies resulting in more than $3 million in fraudulent spending that has left whole communities to deal with the fallout.
Related stories:
Jamey Noel Fallout | Corruption, betrayal and communities left in chaos
Former sheriff's crimes force property tax hikes, service cuts in Clark County
Former Clark County council member pleads guilty to 1 felony connected to Jamey Noel case
Jamey Noel sentenced to 12 years in prison after pleading guilty to 27 felonies for theft, fraud
Floyd County residents face new income tax for ambulance service starting next year
Jamey Noel's classic car collection to hit auction block soon in southern Indiana
Misty Noel's trial on felony theft, tax evasion charges moved to June
Jamey Noel's daughter pleads guilty to theft and tax evasion, sentenced to prison
Judge rules former Clark County councilman will stand trial in Jamey Noel case
Copyright 2025 WDRB Media. All Rights Reserved.
