Multiple charges are pending against a Warsaw couple in connection with alleged business corruption, money laundering and tax evasion.

Richard D. Orban, 47, and Janet L. Orban, 47, of 165 E. Deerwood Court, Warsaw, are charged with corrupt business influence, a Class C felony; money laundering, a Class C felony; perjury, a Class D felony; three counts of theft, all Class D felonies; two counts of failure to remit sales tax, both Class D felonies; filing of false income tax return, a Class D felony; and keeping two sets of books, a Class D felony. Richard Orban also is charged with fraud, a Class D felony.

Authorities said that the Orbans are on vacation and, through their attorney, arrangements have been made for them to turn themselves in on Monday at the Kosciusko County Jail.

Richard Orban and David A. Melching are partners in Carpet Express at West Levi Lee Road and Ind. 15 north, Warsaw. An investigation into the allegations against the Orbans began prior to June 17 after Melching made a complaint in the Kosciusko County Prosecutor's Office alleging that the Orbans were taking funds from the partnership. Police seized the records of the business on June 17 and, on June 25, Richard Orban filed a complaint in Kosciusko Superior Court I for dissolution of the partnership and appointment of a receiver.

Janet Orban was employed as the bookkeeper for Carpet Express, where she maintained the accounting functions for the business.

Carpet Express is currently in receivership and closed its doors about two weeks ago. Warsaw attorney James Walmer was appointed receiver in the matter.

Another lawsuit, filed Friday in Kosciusko Superior Court I by Janet Orban, claims that Melching has "made and published" slanderous remarks about her, accusing her of "criminal acts, theft and malfeasance." The civil lawsuit further states that the statements made "stem from a dispute between plaintiff's husband and defendant regarding a business and were made maliciously and with the intent to harm and defame" Janet Orban.

In the criminal cases, the Orbans are accused of not posting invoices in the business' records and, subsequently, failing to report the income for those invoices to the Indiana Department of Revenue. The 113 invoices allegedly generated $67,575.72 which was not reported to the partnership and which was kept by the Orbans for their own purposes.

Additionally, court documents note, "through a collusion of Richard D. Orban and Janet L. Orban, husband and wife, they implemented a plan to not report sales of flooring products to the partnership ... (and) engaged in a plan not to report any of the income or sales not reported to the partnership to the Department of Revenue."

Further investigation determined that the missing partnership income was not reported on the trial balance sheet presented to the accounting firm for Carpet Express and that the alleged missing partnership income was not reported on the business' or the Orbans' personal income tax returns for 1998. Because the Orbans signed their tax returns despite the fact that the forms contained alleged false information, authorities alleged that they committed perjury.

The Orbans allegedly kept two sets of books - one for Carpet Express and one for themselves containing the sales invoices not posted for the partnership.

Other confiscated business documents show that the Orbans paid personal expenses from partnership funds in the amount of $35,178.45, and that $44,547 worth of sales taxes collected between Jan. 5, 1998, and June 7, 1999, were not delivered to the Department of Revenue.

The probable cause affidavit on the charges against both of the Orbans, prepared by Rick Albrecht of the Indiana Department of Revenue, alleges that the Orbans took unauthorized control of a total of $80,207.60 and that "business records and tax records show (the Orbans) ... engaged in a pattern of racketeering activity."

Detective Paul Schmitt of the Warsaw Police Department and a liaison with the prosecutor's office prepared the paperwork on the fraud charge against Richard Orban.

That charge resulted after an investigation concerning an Aug. 14, 1998, break-in to Carpet Express. Richard Orban reportedly submitted an insurance claim for a loss of $4,270.

When two suspects to that and other local burglaries were arrested, they admitted taking about $60 cash from Carpet Express. Richard Orban reported that $100 in petty cash, $400 in C.O.D. money and $3,770.86 from a cash sale were taken in the burglary. However, the amount allegedly missing from the cash sale was discovered on a deposit slip dated Aug. 13, 1998. [[In-content Ad]]