JUDGE PROPOSES RULES AIMED AT DTF 'ETHICAL CONCERNS'

MUNCIE -- New rules governing local drug forfeiture cases could end
the practice of the Muncie-Delaware County Drug Task Force and its
attorney, County Prosecutor Mark McKinney, of seizing -- and spending
- -- money from alleged drug dealers without court orders.

Delaware Circuit Court 2 Judge Richard Dailey on Thursday gave local
officials a draft of those rules, which would require criminal cases
to be disposed of before any civil drug forfeiture is ordered.

And forfeitures would be handled by an attorney under written
contract who is either not a deputy prosecutor or a salaried deputy
prosecutor not assigned to any criminal prosecutions.

"That eliminates any ethical concerns," Dailey said of the proposed
policy. "There are no questions that justice is for sale."

McKinney, as deputy prosecutor before his 1996 election as
prosecutor, received nearly $100,000 in attorney fees over the past
decade handling civil forfeiture cases, and also prosecuted criminal
cases. The prosecutor and the drug task force used confidential
settlement agreements, negotiated without court orders, to disperse
hundreds of thousands of dollars in cash and property for the DTF's
use.

The proposed rules -- which will go to Delaware County's five Circuit
Court judges for approval, and then to the Indiana Supreme Court --
also cite state law that proceeds from drug forfeitures should be
placed in local government general funds and common school funds
after law enforcement costs have been paid.

The DTF had its own accounts under city government, and also
maintained an off-the-books checking account that it used to spend
money on its operations and various other expenses, including
equipment for a city police gym, donations to youth charities and
carpeting the prosecutor's office last year. The State Board of
Accounts shut down that checking account last year.

McKinney did not attend Thursday's meeting, which included
representatives of law enforcement, government financial officials,
attorneys and others. Chief Deputy Prosecutor Jeffrey Arnold did
attend and offered some input to the rules, which also call for
property and money from drug arrests being placed in police property
rooms instead of a DTF safe and property room at its separate
headquarters.

"I am not in any position to authorize this (on behalf of the
prosecutor's office)," Arnold said.

"I don't know that much about forfeiture laws," the chief deputy
prosecutor added.

During an interview, McKinney, who was in the prosecutor's office
Thursday, said he would have to review the rules before commenting on
them at length.

"I don't think the judge can control where evidence is held,"
McKinney said, adding that responsibility rested with law
enforcement.

McKinney also said state law permits the prosecutor to received 25
percent of assets seized through drug-related arrests for attorney
fees on forfeitures. He has also denied that the prosecutor's office
based plea agreements on the amount of forfeited money and property
seized from a defendant.

When it comes to confidential agreements, McKinney said, case law
encourages out-of-court settlements, and confidential settlements
without court orders were no different.

Recently appointed Delaware Circuit Court 5 Judge Chris Teagle was at
Thursday's meeting, and said he agreed with the new rules.

Teagle -- who has practiced law throughout eastern Indiana -- said
courts in Blackford, Jay and Randolph counties waited until a
criminal case was disposed of before acting on related civil
forfeitures.

Allen and Marion counties contract attorneys to handle forfeitures
who do not handle criminal cases for the prosecutor's office.

Former local deputy prosecutors have said handling forfeiture cases
provided a way to make extra money.

McKinney handled those cases for more than a decade before turning
the work over to Deputy Prosecutor Eric Hoffman, who has received
more than $22,000 since 2004.