AUTHORITIES SEARCH OFFICE OF HANCOCK COUNTY SHERIFF

Greenfield police say state Board of Accounts, FBI will help with
obstruction-of-justice probe

A search warrant was served Friday at the office of Hancock County
Sheriff Calvin K. "Bud" Gray as a probe into alleged financial
irregularities within the department continues to widen.

Greenfield Police Chief John Jester, whose agency conducted the
search, said the warrant was served about 3 p.m., but he wouldn't
specify what investigators were looking for.

"There was evidence collected," Jester said. He added that the state
Board of Accounts will conduct an audit and that the FBI will be
assisting Greenfield investigators.

Gray was arrested Aug. 6 at a Shelby County casino on a charge of
obstruction of justice.

According to a court document released Thursday, Gray allegedly
ordered a narcotics detective on three separate occasions to give him
$1,000 from funds used to make undercover drug buys.

Gray also is accused of obtaining another $1,000 from another petty
cash fund handled by a civilian employee of the department, according
to the document.

Gray demanded the money from Hancock County Sheriff's Detective Sgt.
Brian Ellison, according to testimony given by Greenfield Police Chief
John Jester at the hearing. The sheriff also allegedly threatened to
kill Ellison for "throwing him under the bus," according to the
document, though he later said he was joking.

Gray was facing personal financial woes and had fallen behind on
payments for a truck, according to Jester's findings.

In his testimony, Jester referred to interviews he conducted with
Ellison while investigating Gray's activities. Each time Gray demanded
the money, Ellison complied with his superior's request, according to
the document.

The first such occasion was in April 2009, Jester said.

Gray demanded another $1,000 from Susan Powers, a civilian Sheriff's
Department employee who serves as jail matron, according to Jester's
testimony. Gray told Powers not to tell anyone about the transaction,
according to Jester's testimony.

Like Ellison, Powers complied with Gray's demands, Jester said. The
money came from a petty cash fund, according to Jester, who recounted
interviewing Powers.

Two members of the Hancock County Sheriff's Department -- Col. Donnie
Munden and Maj. Andy Craig -- also gave testimony as part of the
probable-cause hearing. Their statements supported the conclusions
reached by Jester.

Jester is overseeing the criminal case against Gray; Craig is
overseeing an internal review at his agency.

Aware he was under investigation, Gray became despondent in the hours
before his arrest, Jester said. The sheriff tried to grab a handgun
from a friend's holster hours before he was arrested, Jester said in
his testimony, indicating that he wanted to commit suicide.

Gray is free on $500 bond while awaiting his opportunity to answer in
court for his activities. No dates have been set for pretrial
conferences or trial, a Hancock County court official said Friday.

Hancock County Judge Richard Culver has recused himself from the case,
and Rush County Judge Brian Hill will serve as a special judge
handling matters related to Gray's case. A special prosecutor, Dan
Sigler of Whitley County, also was named.

Hancock County Prosecutor Dean Dobbins has advised Sigler to pursue
charges of theft and official misconduct in addition to obstruction of
justice. In the document released this week, Jester also testified
about threats Gray allegedly made against Ellison and other officers
for "throwing him under the bus" by revealing the sheriff's activities.

Among other revelations in the document is testimony indicating Gray
allegedly struck Ellison at some point prior to the investigation and
that Gray allegedly once asked a detective for marijuana.

Munden continues to oversee day-to-day operations at the Hancock
County Sheriff's Department after Gray's arrest.

Gray's attorney, James Voyles Jr., did not respond to a telephone
message Friday. A paralegal said he was out of the office.