INDIANAPOLIS - "It's been a long seven years," said Warsaw resident Richard Orban. "We feel vindicated. We are extremely relieved."

That was Orban's reaction shortly after receiving word that he and his wife Janet won a case against the city of Warsaw, former Warsaw Police Officer R. Paul Schmitt and Indiana Department of Revenue investigator Rick M. Albrecht in Marion Superior Court II June 29. The Marion County jury heard eight days of testimony in the case and returned with their verdict after about four hours of deliberation.

The Marion County jury sided with the Orbans, agreeing that Schmitt, Albrecht and the city of Warsaw violated the Orbans' Constitutional rights. A case currently is pending in the federal court system against Schmitt and the city of Warsaw for the violation of the Orbans' civil rights. The federal case was put on hold until the state trial finished. Now that the trial is finished, the civil rights case has been put on the federal docket. A specific date has not yet been set for the federal trial.

Albrecht was ordered to pay the Orbans $1,575,000, while Schmitt and the city of Warsaw was ordered to pay $400,000.

In 2001, the Orbans filed a civil rights lawsuit against the state of Indiana, the Indiana Department of Revenue, the city of Warsaw, Schmitt, Albrecht, David A. Melching and D.A. Melching and Associates Inc. The suit claimed the Orbans' Fourth Amendment (unreasonable search and seizure) and the Fourteenth Amendment (deprivation of life, liberty or property without due process of law) rights were violated.

"We are thrilled with the award," Richard Orban said.

Warsaw City Attorney Mike Valentine was out of town and unable to comment because he had not yet seen the court documents.

In the suit, the Orbans claimed false statements were made to Chuck Waggoner, Kosciusko County prosecutor at the time, to persuade him to file charges of corrupt business influence, money laundering, perjury, theft, failure to remit sales tax, filing a false income tax return and fraud against them.

All charges against the Orbans were dismissed in January 2001 after Kosciusko Circuit Court Judge Rex Reed ruled the case was mishandled.

The suit also alleged evidence that could have cleared the Orbans was withheld and destroyed.

In 1997, Richard Orban and David Melching became partners and co-owners of Carpet Express. Orban became a managing partner in the business, and his wife, Janet, was a bookkeeper at the business. After having more than $1 million in sales in 1998, the business began to suffer financial difficulties in 1999. Around the same time, Melching removed cash from the office of Carpet Express for his personal use. When Orban confronted Melching about the incidents, Melching admitted to taking the money.

Shortly after, the partnership was dissolved and the Orbans told Melching he would be reported to police if the funds were not returned.

Then Melching made false claims to Waggoner about the Orbans, causing search warrants to be issued and an investigation launched.

Computers and other items were seized from the Orban home, and later Schmitt released the seized computers to Melching. The items seized from the Orban home were never returned.

Multiple felony charges, including money laundering, perjury, theft, keeping two sets of books, fraud, and filing a false income tax return, were filed against the Orbans in 1999.

"It was devastating," said Richard Orban.

The charges against the Orbans eventually were dropped in 2001, and the Orbans filed suit against Melching. In 2002, a Marion County jury awarded the Orbans a $3.275 million judgement against Melching and his business.

The case settled June 29 referred specifically to Schmitt, Albrecht and the city of Warsaw.

The jury's verdict form regarding the first count, violation of Constitutional Rights, said, "On count I of Plaintiff's Complaint, which alleges that Rick Albrecht violated Plaintiff's Constitutional rights in the course of the criminal prosecution, we, the jury, find for the Plaintiffs and against the Defendant Rick M. Albrecht. We determine the Plaintiffs' damages to be in the amount of $1,575,000."

On count II, conspiracy to violate Constitutional rights, the verdict form said, "On the count of Plaintiffs' complaint alleging that Rick M. Albrecht and R. Paul Schmitt conspired with one another and David Melching, to violate Plaintiffs' Constitutional rights in the course of the criminal prosecution, we, the jury, find in favor of the Plaintiffs and against the defendants Rick M. Albrecht and R. Paul Schmitt."

The jury also sided with the Orbans on a third count, conspiracy to convert assets. "On the count of Plaintiffs' complaint alleging that R. Paul Schmitt conspired with David Melching and/or Rick M. Albrecht to convert the assets of Carpet Express LLP to David Melching, we, the jury, find in favor of the Plaintiffs and against the defendants R. Paul Schmidt and the city of Warsaw, and we assess damages against R. Paul Schmitt and the city of Warsaw in the amount of $400,000."

"It was a good settlement," said Richard Orban.

Although the federal case is still on the docket, the Orbans are looking forward to closing the chapter on this case.

"We are looking forward to starting our lives over again," said Richard Orban. [[In-content Ad]]