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Ex-wife ordered to return money husband stole from nonprofit

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A woman whose ex-husband committed suicide after his scheme to steal money from his employer unraveled must pay back to the company money she received from her husband during and after their marriage, the Indiana Court of Appeals ruled Monday.

Connie Landers challenged the Tippecanoe Superior Court’s ruling in favor of Wabash Center Inc., a not-for-profit that assists children with developmental disabilities and provides assistance for adults related to living and employment, that she must pay more than $1 million to the agency because her ex-husband stole more than $4 million from his employer.

Stephen McAninch worked for Wabash managing the nonprofit’s finances from 1986 until his death in 2009, during and after his marriage to Landers. He set up a fake company to divert money to and was able to conceal his actions because of his job duties. It wasn’t until an outside auditor in 2009 sought to confirm that the fictitious company actually completed work that Wabash paid for that the scheme was discovered. McAninch killed himself in October 2009, and a forensic accountant discovered that Landers had received some of the stolen money.

She argued that Wabash’s lawsuit, filed in April 2011 for unjust enrichment and other wrongs, should be barred by the statute of limitations because the agency didn’t act with reasonable diligence to discover the theft within the six-year statute of limitations. But there’s sufficient evidence to support the trial court’s conclusion that Wabash acted with ordinary diligence, Senior Judge Randall T. Shepard wrote. McAninch kept false records and invoices, locked in a drawer in his office, and there was no reason to believe McAninch had created false minutes from board meetings. Previous outside audits didn’t raise any red flags.

There’s also evidence that Landers received stolen money. She estimated her ex-husband made around $150,000 a year, which included his “moonlighting” as she called it, which is above the salary McAninch earned. He also agreed in their divorce to pay her above the monthly amount required under the Indiana Child Support Guidelines, gave her $20,000 in the divorce, and paid for the home’s mortgage. Because he had also bought himself a boat, car and other items, he likely spent his own money on those items, meaning Landers received stolen money, the judges concluded in Connie S. Landers v. Wabash Center, Inc., 79A04-1204-CT-191.
 

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  1. Frankly, it is tragic that you are even considering going to an expensive, unaccredited "law school." It is extremely difficult to get a job with a degree from a real school. If you are going to make the investment of time, money, and tears into law school, it should not be to a place that won't actually enable you to practice law when you graduate.

  2. As a lawyer who grew up in Fort Wayne (but went to a real law school), it is not that hard to find a mentor in the legal community without your school's assistance. One does not need to pay tens of thousands of dollars to go to an unaccredited legal diploma mill to get a mentor. Having a mentor means precisely nothing if you cannot get a job upon graduation, and considering that the legal job market is utterly terrible, these students from Indiana Tech are going to be adrift after graduation.

  3. 700,000 to 800,000 Americans are arrested for marijuana possession each year in the US. Do we need a new justice center if we decriminalize marijuana by having the City Council enact a $100 fine for marijuana possession and have the money go towards road repair?

  4. I am sorry to hear this.

  5. I tried a case in Judge Barker's court many years ago and I recall it vividly as a highlight of my career. I don't get in federal court very often but found myself back there again last Summer. We had both aged a bit but I must say she was just as I had remembered her. Authoritative, organized and yes, human ...with a good sense of humor. I also appreciated that even though we were dealing with difficult criminal cases, she treated my clients with dignity and understanding. My clients certainly respected her. Thanks for this nice article. Congratulations to Judge Barker for reaching another milestone in a remarkable career.

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