INDIANAPOLIS - Former business partners - at odds after criminal charges were filed against one man and his wife and then dismissed - continue to fight legal battles with a $3.275-million judgment awarded last week.

Charges of corrupt business influence, money laundering, perjury, theft, failure to remit sales tax, filing a false income tax return and fraud, against Richard and Janet Orban of North Webster all were dismissed in January 2001.

The charges were dismissed by Judge Rex Reed in Kosciusko Circuit Court.

Reed ruled that evidence in the case was mishandled, leaving the defendants unable to adequately defend themselves against the charges.

The Orbans filed the civil lawsuit against their former business partner, David A. Melching and his business, D.A. Melching & Associates Inc., the Indiana Department of Revenue and R. Paul Schmitt of the Warsaw Police Department and Rick M. Albrecht of the Indiana Department of Revenue, both in their individual capacities, in June 2001 in Marion Superior Court 2.

The judgment that was entered on May 13 is only against Melching and his business. The case remains pending against all other defendants.

The court decided the judgment against Melching by default, which means he didn't appear to defend himself against the allegations brought in the civil lawsuit.

Marion Superior Court Magistrate Burnett Caudill noted in the judgment that Melching and Melching & Associates are liable to the Orbans for slander, conversion and malicious prosecution.

Criminal charges were brought against the Orbans based upon information provided by Melching, with whom Richard Orban was co-owner of Carpet Express on West Levi Lee Road, Warsaw. Janet Orban was the bookkeeper for the business.

Among the items seized by authorities during the investigation were computers and computer records. Those items were reportedly later turned over to Melching by investigators. The case filed by the Orbans claims that some of the evidence in the criminal investigation was destroyed, lost or altered.

That evidence could have helped exhonerate the Orbans, their lawsuit claims.

According to the court document, by defaulting on the case, Melching "admits that he effectively converted Richard Orban's ownership interest in Carpet Express LLP to his own use and benefit."

The $3.275-million judgment includes $75,000 for attorney fees, $400,000 for conversion of Richard Orban's 50 percent ownership interest in the business, $800,000 in statutory penalties as a result of that conversion, $1 million in the Orbans' lost earnings and diminished earning capacity arising from the damage to their reputations in the community and $500,000 to each of the Orbans for their embarrassment, humiliation, loss of reputation and mental distress occasioned by the defaulted defendants' conduct to date and to be reasonably anticipated in the future. [[In-content Ad]]