JUST IN: EPD To Conduct FormaI Investigation Into The Alleged Misuse Of ECHO Housing Funds By Former Director

EPD To Conduct FormaI Investigation Into The Alleged Misuse Of ECHO Housing Funds By Former Director

presented by EPD Sergeant and Communication Officer Jason Cullum 

Earlier today, we began a formal investigation into the alleged misuse of ECHO Housing Corporation funds by Stephanie TenBarge.

Although many crimes require a cooperating victim for an investigation to proceed, there are exceptions. Due to particular circumstances, in this case, society has been listed as the victim. ECHO has been listed as an involved party. Those classifications can be changed as need depending on how the investigation proceeds. At this time, there is no additional information to release on the investigation itself.

We do, however, want to provide a timeline of events as they pertain to the Evansville Police Department.

At the time of the discovery of the misused funds, The ECHO Board of Directors consisted of several members, including EPD Officer Eric Krogman. Officer Krogman had been a board member for approximately I year prior to the disclosure of the misused funds. His primary role on the board was to address Crime Prevention issues at ECHO owned properties

On 02-24-18 Officer, Krogman received an email from ECHO Board President Roy Dane Chandler. The email read
Eric,
Can you please give me a call when you get this e-mail. It is regarding a sensitive matter concerning Echo Housing. My cell number is *********.

Thanks,
Dane

On Monday, February 26th, Officer Krogman spoke to Mr. Chandler about the misuse of funds.
Later that day, as required by EPD policy, Officer Krogman notified his supervisor that he had received information about a possible felony crime.

His email read-
Sarge,

I was contact today by Roy Chandler who is on the Echo Housing Board along with me and works at 5/3rd Bank. He said that it was brought to his attention that looking through the Echo financial information that there could be a possible misappropriation of funds by Echo Housing Corporation’s Executive Director Stephanie TenBarge. He said it looks as though it’s possible that TenBarge paid her property taxes with Echo Housing funds among other issues. They are looking into payroll and expense account reports too. I suggested that he let our financial crimes unit look at it as well. He said he is meeting with attorney Scott Wiley who specializes in non-profits later today. I wanted to let you know this encase it would get to the point on the board voting on terminating her or some other form of discipline. Also if it would come to that point should I abstain from voting on that issue? They would have quorum without me.

Thanks,
Eric Krogman, CPD

Over the next days and weeks, despite a repeated request to file a police report, ECHO excluded the EPD from any official involvement into the matter. That decision put Officer Krogman in a moral and ethical situation that he felt he needed to remove himself from.

On March 8th, officer Krogman resigned from the ECHO Housing Corporation. His email to the board members read-

I would like for this e-mail to serve as my official resignation from the Board of Directors for Echo Housing Corporation. I do not feel comfortable continuing to sit on the board after recent events and the way in which they were handled. I have an oath

I have taken and was asked to ignore it for the sake of the board which is something I cannot and will not do.

Respectfully Submitted,
Eric Krogman, CPD

While we do not have enough info to say how much money was misappropriated or where the money came from, we do know ECHO receives money from local and federal sources. In the interest of transparency and accountability, we feel it is appropriate to use our available resources in this case.

FOOTNOTE:  The information presented at the EPD press conference was sent to us by EPD Sergeant and Communication Officer Jason Cullum.