DAILEY CONCLUDES DTF HEARINGS WITH NO FINDINGS OF CRIMES

The city will continue to pursue appointment of a special prosecutor
to review local forfeiture cases.

MUNCIE -- Delaware Circuit Court 2 Judge Richard Dailey on Wednesday
concluded his series of hearings on the handling of forfeitures and
seizures in local drug-related cases, making no finding of criminal
activity.

"That is something left to someone else to do," said Dailey, referring
to a grand jury or special prosecutor.

Dailey reviewed 10 more cases Wednesday in which the Muncie-Delaware
County Drug Task Force, Delaware County Prosecutor Mark McKinney and
Deputy Prosecutor Eric Hoffman used confidential settlements or
affidavits to seize and disperse the money and assets of alleged drug
dealers.

While state law requires that such money be placed local government
and school funs, the DTF maintained separate city accounts and
checkbooks in which they deposited and spent hundreds of thousands of
dollars over the past decade and equipment, vehicle, charitable
donations and other expenses.

Dailey spoke from the bench to McKinney and Hoffman, along with city
attorney Charles "Chic" Clark, after Wednesday's hearing, saying he
had not seen evidence of criminal activities by police in the nearly
40 cases he had reviewed so far.

"That's what we have been saying all along," said McKinney later. "I
hope we can get back to fighting crime."

However, Dailey intends to rule next week on forfeiture cases in which
agreed entries or default judgments were entered after hearing
testimony that the DTF generally disregarded laws governing the
dispersal and spending of forfeited assets.

Dozens of more cases remain under review, with prosecutors and police
ordered to submit information on the cost of enforcement and
prosecution to ensure officials complied with the law.

Delaware County judges have already stopped taking final action on
civil forfeiture cases before the criminal case against a defendant,
and forfeiture target, is resolved.

And Dailey has ordered an end to the practice of deputy prosecutors
handling civil forfeiture, requiring McKinney's office to hire an
attorney to do that work.

Clark said the city still would seek appointment of a special
prosecutor to review the handling of drug forfeiture cases. That
petition remains before Special Judge Michael Peyton of Henry County,
who has not yet set a hearing.

Mayor Sharon McShurley has also filed a complaint against McKinney
with the Indiana Supreme Court's disciplinary commission, alleging
misconduct in his handling of forfeiture cases as a civil attorney who
also working as prosecutor and deputy prosecutor.

State law prohibits full-time prosecutors from maintaining a civil law
practice while in office.

McKinney received money and filed civil forfeiture cases for more than
a decade as a deputy prosecutor and again after he took office as
prosecutor in January 2007.

The prosecutor maintains any payments last year were for work done
before he took office.