Scott Swan/Eyewitness News
Indianapolis - February 17 - A federal grand jury has indicted a local real estate developer for allegedly running a huge check-kiting scheme. Hendricks County resident Eric Tauer stands accused of using bad checks to get $217 million, one of the biggest schemes in Indiana history.
Contractor James Ewing says he helped Eric Tauer build homes in Hendricks County and lost money, a lot of money, somewhere in the neighbirhood of one million dollars.
It's all part of an alleged complex scheme involving Tauer's multiple real estate businesses, a scheme that resulted in several federal indictments. The indictment reveals Tauer deposited more than 2,700 insufficient fund checks totaling over $217 million.
Susan Brooks United States District Attorney for the Southern District says, "He also owed so many contractors, sub-contractors, the people who were building these homes, from framers, plumbers, air conditioning and heating people."
Brooks also says Tauer defaulted on real estate loans, sticking others with the tab. "They are now responsible for loans, some as high as $246,000."
Eyewitness News tried to contact Tauer at his last known address, he wasn't there. But we did get him on the phone. Tauer says he is still in construction. "I do the construction as part of the homes, but I have nothing to do with anything else. I do construction supervision."
Tauer will make his first appearance in federal court at the end of February. He faces ten counts of bank fraud, two counts of money laundering and one count of conspiracy. If convicted, Tauer could get 30 years in prison and a $1million fine.
