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Grand Jury hands down Indictments Against Stone Creek Homes CEO & CFO

July 1, 2014

StoneCreekHomes_logoIt’s been a little of over two years since Stone Creek Homes, Inc. in Plymouth abruptly closed leaving 45 devastated employees, a long list of unpaid suppliers, a bewildered community-and angry and upset investors.
Arrest warrants for David Ferguson, age 61, former Stone Creek Homes president and CEO and Alan Donohue, 70, CFO, were issued on June 27, 2014. Donohue operated their plant in Central City, NE. That facility was closed at the same time leaving 25-30 employees there without jobs
Just prior to the Memorial Day weekend in 2012, Stone Creek employees were called into the break room for a meeting with the Human Resource Director and General Manager. They were told that the plant was short on parts and had no money in the accounts to pay anyone. They were further informed that there was an indefinite layoff and that they should gather their personal belongings and leave the property.
Ferguson, was not at the meeting. Office personnel were shocked when they arrived at the facility the next morning to find that all of Ferguson’s personal items along with computers, etc. had been cleared out of the building, his rented home on Pretty Lake had been emptied, his cell phone number disconnected, websites wiped out, and emails unanswered.
Marshall County Prosecuting Attorney , David Holmes, issued a press release on Tuesday morning of this week, outlining the charges against Ferguson and Donohue.
In the release, Holmes stated “…that under his direction, his office requested in late 2013 a grand jury be convened by the Marshall Superior Court No. 1 for January 28, 2014. Both Holmes and Chief Deputy Prosecuting Attorney , Nelson Chipman, presented evidence to the grand jury panel gathered by the Prosecutor’s Office and Indiana State Police Detective Don Curl.
Additional information was presented to the panel a second day on February 20, 2014.” After deliberation on that date, the Grand Jury handed down indictments against the two individuals.
Holmes indicated that there were specific reasons for sealing the indictments until now. Holmes said, “In response to a desire to confer with authorities from other jurisdictions, and to follow additional investigative leads, the Prosecutor’s Office requested the indictments to be immediately sealed from public disclosure until further request.” Court records show a request to unseal the indictments was granted by Marshall County Superior Court No. 1 on Friday, June 27, 2014. At the State’s request, warrants for the arrest of each of the defendant were issued on June 27, 2014, and bond was set for $15,000 cash. Holmes said that neither defendant had been apprehended at the time of the press release.
The indictment against Ferguson, who residences in Madison, MS and Snyder, TX alleges 14 counts as follows:
Counts I, II , III, VI, VII, VIII, IX, X, XI Theft (Class D Felonies); Count IV Receiving Stolen Property (Class C felony); Count V Conspiracy to Receive Stolen Property (Class C felony); Counts XII, XIII, XIV Corrupt Business Influence (Class C felonies).
The indictment against Donohue, Macon, GA, alleges 11 counts as follows: Count I; Aiding in the Commission of Theft (Class D felony); Counts III, IV, V, VI, VII, VIII Theft (Class D felonies); Count II Conspiracy to Commit Receiving Stolen Property (Class C felony) ; Counts IX, X, XII Corrupt Business Influence (Class C felony).
Holmes said, “By way of clarification, Counts XII, XIII, and XIV of Ferguson’s indictment, and Counts IX, X, XI of Donohue’s indictment are allegations under Indiana’s Racketeer Influenced and Corrupt Organization statute, also known as RICO.
Three of the theft counts against Ferguson state that he “did knowingly or intentionally exert unauthorized control over property of Jeff Jones… by creating or confirming a false impression in Jeff Jones, and or by promising performance that the said David A. Ferguson knows will not be performed, all with the intent to deprive Jeff Jones of any part of the use or value of said property.” The amounts listed in the counts were $78,426; $74,385; and $74,385.
Counts IV and V stem from the transfer of funds of Todd Morse in the amount of $233,000 from a bank in Nevada to a bank in Plymouth for the purpose of using funds in part for personal expenses incurred by Ferguson and transfer of funds to a separate account of Ferguson and a separate account of Donohue.
Additional theft charges concerned unpaid wages and unpaid health care premiums for former employees Daniel Flynn, Randy Weaver, and Judith Reinhold.
Opening in August of 2011 with nine employees, Stone Creek Homes, Inc. moved into the former Shamrock Homes facility on Markley Drive. They produced “ man caves” modular housing for the gas and oil fields where housing for workers is scarce. The units featured two sections complete with sleeping accommodations, kitchens, bathrooms, and a shared laundry facility.
In August of 2013, WTCA reporters unearthed pictures of Ferguson that appeared in the Snyder, TX Chamber of Commerce website from a ground breaking ceremony held for Custom Touch Village. The units being used there were of the same type that had been built in Plymouth and Nebraska. According to information included in an article in Big County News dated March 20, 2013, “the project is a joint venture of South-Dakota based Custom Touch Homes, Larson Ventures and Turn Key Solutions.” Donahue is listed in the article as vice-president and chief financial officer of Turn Key Solutions.
Holmes said, “All persons reading this press release, or reading, listening, to of the information contained in this press release through written media, or radio and television broadcasts, are reminded that the charges within the indictments are merely an accusation and that each of the defendants are presumed innocent until or unless guilty in a court of law.”