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Fraud victim files civil suit against ex-councilor

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An Indianapolis physician who lost $1.7 million in a fraud scheme orchestrated in part by former Democratic City-County Councilor Paul C. Bateman Jr. has sued Bateman and two associates in Marion Circuit Court.

The civil suit comes as a criminal trial stemming from the case begins in U.S. District Court for the Southern District of Indiana. Jury selection began Monday morning in the trial of co-defendant Manuel Gonzalez, 53, who is facing three counts of wire fraud and two counts of money laundering.

Bateman, 58, pleaded guilty last month to 13 counts of money laundering and wire fraud. A third co-defendant, ringleader Michael Russell, 54, agreed to a plea deal a week earlier on 20 counts of wire fraud and money laundering.

The men are accused of persuading Dr. Arthur Sumrall to invest the money in their foundation and an ethanol-production business they said would fund it, but instead spent the money on personal luxuries.

Sumrall filed his civil suit seeking unspecified damages on Feb. 5. The lawsuit names all three criminal defendants and The Russell Foundation Inc., the not-for-profit the ethanol business was supposed to support.

The suit says the men solicited Sumrall's cash to invest both in ethanol production and development of a monorail system. It alleges the men used the funds "in a scheme of unauthorized selling and refinancing of vehicles purchased by The Russell Foundation."

"The titles were fraudulently signed by a law enforcement officer associated with the defendants," the suit alleges.

Bateman, along with Russell, also has agreed to pay back the $1.7 million they obtained from the physician, referred to as A.S. in the indictment filed in December 2011 against Russell, Bateman and Gonzalez.

According to the indictment, Russell approached the physician in January 2007 during a medical appointment about making an investment in an entity later established as Indiana Ethanol Capital Investments LLC. Russell, Bateman and Gonzalez attended several meetings with the doctor at a Denny's restaurant to further sell him on the investment.

Russell told the physician that the ethanol operation could reap an $18.5 million return on a $600,000 investment, and that he would be the last of 12 people to invest in it. In fact, the doctor was the only investor.

Between February 2007 and April 2007, according to court documents, Bateman picked up five checks for the ethanol investment totaling $702,000, most of which was deposited into Bateman’s personal account. The remainder was put into The Russell Foundation account, and later was transferred between that account and Bateman’s personal account.

The trio allegedly spent all but $30,000 of the money, purchasing seven cars, as well as custom clothing, home furnishings, entertainment and “elaborate security details” that included members of the Indianapolis Metropolitan Police Department, the indictment said.
 

The IBJ is a sister publication of Indiana Lawyer.

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  1. Ah yes... Echoes of 1963 as a ghostly George Wallace makes his stand at the Schoolhouse door. We now know about the stand of personal belief over service to all constituents at the Carter County Clerk door. The results are the same, bigotry unable to follow the directions of the courts and the courts win. Interesting to watch the personal belief take a back seat rather than resign from a perception of local power to make the statement.

  2. An oath of office, does it override the conscience? That is the defense of overall soldier who violates higher laws, isnt it? "I was just following orders" and "I swore an oath of loyalty to der Fuhrer" etc. So this is an interesting case of swearing a false oath and then knowing that it was wrong and doing the right thing. Maybe they should chop her head off too like the "king's good servant-- but God's first" like St Thomas More. ...... We wont hold our breath waiting for the aclu or other "civil liberterians" to come to her defense since they are all arrayed on the gay side, to a man or should I say to a man and womyn?

  3. Perhaps we should also convene a panel of independent anthropological experts to study the issues surrounding this little-known branch of human sacrifice?

  4. I'm going to court the beginning of Oct. 2015 to establish visitation and request my daughters visits while she is in jail. I raised my grandchild for the first two and half years. She was born out of wedlock and the father and his adopted mother wantwd her aborted, they went as far as sueing my daughter for abortion money back 5mo. After my grandchild was born. Now because of depression and drug abuse my daughter lost custody 2 and a half years ago. Everyting went wrong in court when i went for custody my lawyer was thrown out and a replacment could only stay 45 min. The judge would not allow a postponement. So the father won. Now he is aleinating me and my daughter. No matter the amount of time spent getting help for my daughter and her doing better he runs her in the ground to the point of suicide because he wants her to be in a relationship with him. It is a sick game of using my grandchild as a pawn to make my daughter suffer for not wanting to be with him. I became the intervener in the case when my daughter first got into trouble. Because of this they gave me her visitation. Im hoping to get it again there is questions of abuse on his part and I want to make sure my grandchild is doing alright. I really dont understand how the parents have rights to walk in and do whatever they want when the refuse to stand up and raise the child at first . Why should it take two and a half years to decide you want to raise your child.The father used me so he could finish college get a job and stop paying support by getting custody. Support he was paying my daughter that I never saw.

  5. Pence said when he ordered the investigation that Indiana residents should be troubled by the allegations after the video went viral. Planned Parenthood has asked the government s top health scientists at the National Institutes of Health to convene a panel of independent experts to study the issues surrounding the little-known branch of medicine.

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