WARSAW, Ind. -- A former Warsaw city employee and two employees of Proform Pipe Lining, Inc of Mishawaka were arrested on multiple charges related to billing irregularities between the city of Warsaw Public Works Department and ProForm.

According to the mayor's office, the City Stormwater Utility was in the process of taking inventory of stormwater lines to determine what had previously been lined or repaired.

In December 2013, the city was made aware there may be intentional overcharging in the project. 

The whistleblower said the company was charging the city for more pipe lining than what was actually installed - an extra 100 feet for every project.

Mayor Joe Thallemer requested an investigation.

"When this first came to light, I had a real hard time accepting that there was involvement," said Thallemer.

That investigation revealed eleven billing discrepancies between May 2011 and May 2013 totaling $260,000, according to a press release from the mayor's office.

The claims for the projects were approved and submitted by Warsaw Street Superintendent Lacy Francis Jr for payment, reports said.

Francis resigned January 27, 2014.

Thallemer says he feels betrayed and calls Francis' behavior unacceptable.

He wants the maximum penalty for Francis and the two employees of ProForm, Kevin Brown and Mark Campbell.

"From my seat as mayor, the most important thing to me is restitution of taxpayer money," said Thallemer.

Charging documents say Francis spent some of the money on a condo in Gulfport, Florida and on an SUV.

It also alleges some of the money was transferred to Brown and Campbell.

Search warrants were served at the business and the suspects' homes.

"This was something that was criminal. There was collusion. Fortunately we got ahead of it and are now in the process of bringing it to justice," said Thallemer.

Search warrants were served at:

• 1305 Country Club Drive, Warsaw


• 2490 Cedar Road, Mishawaka


• 2010 N. Byrkit Street, Mishawaka


• 226 S. Elder Street, Mishawaka

Arrest warrants were issued for the following people

Kevin R. Brown (45 years of age)

ProForm Field Supervisor

Count I – Corrupt Business Influence, a Class C felony

Count II – Aiding, Inducing or Causing Theft, a Class C felony

Count III – Providing False Information to Governmental Entity to Obtain Contract, a Class D felony

Count IV – Providing False Information to Governmental Entity to Obtain Contract, a Class D felony

Count V – Providing False Information to Governmental Entity to Obtain Contract, a Class D felony

Count VI – Providing False Information to Governmental Entity to Obtain Contract, a Class D felony

Marc V. Campbell (53 years of age)

ProForm Owner/President

Count I – Corrupt Business Influence, a Class C felony

Count II – Theft, a Class C felony

Count III – Providing False Information to Governmental Entity to Obtain Contract, a Class D felony

Count IV – Providing False Information to Governmental Entity to Obtain Contract, a Class D felony

Count V – Providing False Information to Governmental Entity to Obtain Contract, a Class D felony

Count VI – Providing False Information to Governmental Entity to Obtain Contract, a Class D felony

Lacy Francis, Jr. (59 years of age)

Former City of Warsaw Public Works Superintendent

Count I – Corrupt Business Influence, a Class C felony

Count II – Aiding, Inducing or Causing Theft, a Class C felony

Count III – Theft, a Class D felony

Count IV – Theft, a Class D felony

Count V – Providing False Information to Governmental Entity to Obtain Contract, a Class D felony

Count VI – Official Misconduct, a Class D felony

Count VII – Official Misconduct, a Class D felony

Count VIII – Conflict of Interest, a Class D felony

Francis worked for the city for 22 years and was the street superintendent for the last 12 years.

ProForm Pipe Lining has done work with the city since the 1990s, according to reports.

The Warsaw Police Department along with the Kosciusko County Major Crimes Unit, Indiana State Police, Mishawaka Police Department, St. Joseph County Police Department, and the FBI, in coordination with the Kosciusko County Prosecutor’s Office, and the United States District Attorney’s Office were all involved in the investigation.