A Scottsburg business owner was arrested June 2 on several felony charges following an Indiana State Police investigation that began in March.
In March, a business vendor and potential fraud victim contacted Detective Tim Denby with the Indiana State Police Special Investigations Section, according to ISP Sgt Carey Huls.
The vendor alleged fraudulent business practices by John Christopher Gibbs, 57, of Louisville, KY, the owner of Gibbs Innovative Manufacturers Inc. (GIM Inc.), located at 1010 Weir Road in Scottsburg.
The vendor said Gibbs paid for services with a fraudulent check. The check in question was for an amount over $10,000. Det. Denby believed Gibbs knowingly wrote the check the day after Gibbs closed the checking account.
As the investigation continued, Denby learned of multiple other vendors who were potential victims and owed large payments by GIM Inc. for work completed at factory in Scottsburg.
Those vendors included various contractors in southern Indiana and a locally based financial institution. The suspected fraudulent or stolen monies totaled over $302,000.00 in this case, Huls said.
Gibbs was charged with Corrupt Business Practices, 7 counts of Fraud, and 7 counts of theft.
Kentucky State Police detectives arrested Gibbs June 2 at a Simpsonville, Kentucky, hotel he was using as his residence. KSP also arrested Gibbs on related warrants from Kentucky, Tennessee, and Georgia.
This past November, Gibbs announced that he would be opening a reinforced steel manufacturing plant in the former Tokusen USA facility on West Weir Road. He told the Scottsburg City Council he planned to invest $18.4 million and employ 135 people.
On April 12, a complaint for breach of lease was filed by property owner 1010 W. Weir Road LLC against Gibbs Innovative Manufacturers Inc. Monthly lease payments of $78,017 were not made for the months of January, February and March. Judge Marsha Howser granted an eviction order on May 22.
On May 1, Koehler Welding Supply of Madison filed a complaint against GIM Inc. and Chris Gibbs in Scott Superior Court seeking $80,288.67 in unpaid charges for supplies. That matter is still pending.