Louisville, KY — Kenneth D. Hughbanks, the former Scott County Sheriff, was arrested early Thursday morning on charges of felony tax evasion. The arrest is connected to his involvement in the ongoing investigation surrounding former Clark County Sheriff Jamey Noel, who is currently serving a 12-year prison sentence for defrauding taxpayers out of millions of dollars.
Indiana State Police confirmed that Hughbanks, 44, was taken into custody at his residence at 9:15 a.m. He was subsequently booked into the Scott County Jail. Authorities have linked Hughbanks to an extensive fraud investigation involving Noel and several other associates, including allegations of improper payments and tax evasion.
Hughbanks, who was appointed to the Scott County Sheriff’s position in April 2018 after the resignation of Sheriff Dan McClain, worked closely with Noel during their respective tenures. Investigators have suggested that Hughbanks’ appointment was facilitated through his connection to Noel, who had been serving as the Clark County Sheriff until his conviction.
Although Hughbanks did not seek re-election for the Scott County Sheriff’s position in 2018, he continued his work under Noel, initially as the Clark County Sheriff’s Operations Corrections Commander. He resigned from the sheriff’s office in 2019 but remained on the payroll as a paid consultant through his business, Hughbanks Enterprises LLC.
An investigation conducted by Indiana State Police, the Indiana State Board of Accounts, and the Indiana Department of Revenue revealed that Hughbanks’ consulting fees were paid out of the Clark County Sheriff’s Office Commissary Fund. Between March 2015 and October 2022, the investigation uncovered that Hughbanks and his related businesses received a total of $280,067 in payments, with amounts ranging from $1,500 to $3,500 per month.
Further scrutiny of these payments revealed that an administrative assistant at the sheriff’s office had attempted to provide Hughbanks with a 1099 form for tax purposes. However, Hughbanks allegedly refused to accept the form, and when the assistant approached Noel for guidance, the former sheriff reportedly instructed her not to provide the tax documents.
The case has become part of a larger investigation into Noel’s actions while in office, which has resulted in a string of arrests, charges, and convictions. In April 2024, Indiana Attorney General Todd Rokita filed a complaint seeking to recover public funds misappropriated by Noel, including those funneled to Hughbanks and his companies. As part of the broader fallout from the scandal, Hughbanks is now facing the possibility of repaying nearly $300,000 in misused funds.
The investigation into Noel and his associates has already led to multiple convictions. In January 2025, Kasey Noel, the former sheriff’s daughter, was sentenced to nine months in prison after pleading guilty to theft and tax evasion. Additionally, Misty Noel, Jamey Noel’s estranged wife, and John Miller, a former Clark County Council member, are both set to stand trial for their roles in the fraudulent schemes. Other figures, including Brittney Ferree, a former Clark County Council member, have also faced legal consequences, with Ferree receiving a sentence of two years probation.
Noel’s fraudulent activities were far-reaching, with his misuse of funds from various entities, including the Clark County Sheriff’s Department, New Chapel EMS, and the Utica Township Fire Protection District. Prosecutors have accused him of using public funds to finance a lavish lifestyle, purchasing vehicles, planes, and other luxury items for himself and his family. Noel ultimately pleaded guilty to 27 felonies, acknowledging the theft of over $3 million from taxpayers.
The ongoing legal proceedings related to this case are expected to continue for some time, with several more individuals facing charges for their involvement in the scandal. As the investigations unfold, the consequences of the corruption within Clark County continue to reverberate across the community, leaving taxpayers grappling with the fallout of years of financial misconduct.
