Former Warsaw Street Superintendent Lacy Francis Jr. is responsible for a judgment of $955,707 plus interest, costs and attorney fees, the U.S. Bankruptcy Court in the Northern District of Indiana ruled Tuesday.

Francis bilked the city of Warsaw out of hundreds of thousands of dollars. Following a years-long effort, Indiana Attorney General Curtis Hill prevailed in holding Francis responsible for the damages, according to a news release from Hill’s office.

Hill said, “Men and women working government jobs at all levels are entrusted to be honest stewards of public money.”

Francis participated in a kickback scheme involving private contractor Pro Form Pipe Lining Co. and its owner, Marc Campbell. Francis helped Pro Form win bids on 11 city projects, involving installation of new lining for sewer pipes. The company deliberately overcharged for its work, sometimes by claiming to have done more work than what was actually performed, and shared the windfall with Francis.

Francis, 64, was sentenced July 24, 2017, in Kosciusko County Circuit Court to two years in prison after a scheme where he bilked the city of Warsaw out of hundreds of thousands of dollars, according to a previous Times-Union story. Judge Michael Reed sentenced Francis to 13 years in the Indiana Department Corrections with 11 years suspended. After the two years in prison, Francis will serve four years on work release and five years of formal probation.





Francis was ordered by Reed to pay $25,000 in restitution.

Francis pleaded guilty July 12, 2017, to four felony counts, including official misconduct and corrupt business influence.

According to his plea agreement, Francis forfeited his retirement benefits back over to the city, according to the Times-Union story.

Tuesday’s civil case judgment represents the misappropriated amounts, audit costs and treble damages, the release states.

Francis’ attorneys had sought to relieve Francis of his full liability due to his declared bankruptcy, according to the release. Under Tuesday’s ruling, Francis will be responsible for paying the judgment against him once he emerges from bankruptcy.

Warsaw Mayor Joe Thallemer said this morning, “Obviously they were trying to get that absolved through bankruptcy court. The attorney general didn’t agree. I have to say I agree with the attorney general. This has been dragging on a long time. The debt is a legitimate debt. With all that the city has gone through, (Tuesday’s decision) was the proper decision.”

He said the city has recovered some of the assets, but didn’t know an exact amount today.

Actions remain ongoing against Campbell and Pro Form to hold them responsible for misappropriated amounts, audit costs and treble damages, the release states.

Campbell, Mishawaka, was sentenced on four felony counts of providing false information to obtain a governmental contract March 9, 2017, in Kosciusko Circuit Court, a previous Times-Union story states.

Reed sentenced Campbell to 1-1/2 years in prison on each count. Reed suspended the prison time, allowing Campbell to serve one year on home detention and five years on probation.

Campbell entered a plea agreement with prosecutors on Jan. 27, 2017. As part of the agreement, Campbell was ordered to pay $70,000 before his sentencing.

Reed ordered Campbell to pay restitution, as part of his probation. The amount owed will be determined by the pending civil case, brought by the Indiana State Attorney General’s Office on behalf of the city.