The Pilot News - 2 top officials arrested

The arrests are the result of a nine-month investigation by the Indiana State Board of Accounts and Indiana State Police Detective Chris Schramm of the Special Investigation Section White Collar Crime Unit.
Milo was arrested at his home on East 200 South. He posted a surety bond of $5,000. Norris was arrested at his Koontz Lake home. He also posted a surety bond of $5,000.
Both men declined to comment to The Leader following their court appearance. Both did say that the hearing was the first time they learned what charges had been filed against them.
While many officials and residents have been waiting for more information or arrests in connection with Major Moves monies, the two arrests seem to have no direct connection to that issue.
Milo, 54, was charged with: Official misconduct, class D felony (two counts), and conflict of Interest, class D felony (two counts). The cases involve the alleged selling of a backhoe to the county and allegedly selling gravel from his company to the county on Sept. 15 of this year.
Norris, 51, was charged with: official misconduct, a class D felony (one count) and theft, a class D felony (one count). Those charges involve the alleged sale of county-owned scrap metal for personal gain.
According to Starke County court documents, here are the details:
On Jan. 5, 2007, the highway department purchased a tractor-loader-backhoe from RMB Equipment of Middleville, Mich. On Feb. 5, 2007, Starke County issued a check to the company for $39,950. RMB’s owners said Milo asked them to buy the backhoe from him and then sell it to Starke County. The two owners did so, making a $500 profit in the transaction.
On Feb. 22, 2007, RMB transferred the $39,450 into Milo’s account at a local bank, according to the investigator’s report.
In his report, that investigator, ISP Detective Chris Schramm, wrote: “Employees of the Starke County Highway Department stated that the JCB backhoe was picked up from Commissioner Mark Milo’s home and driven to the highway department.”
The report suggests the average price of that backhoe, said to be in poor condition, was $24,000.
The detective says that as of Oct. 28, no “conflict of interest disclosure” had been filed with the county clerk’s office in regard to the purchase.
Det. Schramm also reported about the sale of stone by Milo to the county.
At the Sept. 15, 2008 commissioners’ meeting, Kent Danford moved to allow the highway department to fix two washouts and purchase stone for the repairs. Danford also moved to purchase the stone from Milo for $15 a ton. Danford and Kevin Kroft voted to approve the purchase, with Milo abstaining from the vote. No conflict of interest disclosure was filed in this case.
The Leader found the following entry in the Aug. 4 commissioners minutes, quoted verbatim: “The commissioners discussed the road stone at $35 a ton versus stone that Mark Milo sells at $7.50 a ton. The commissioners want to save money and stated that if legal counsel has no problem with it, and Mark files a conflict of interest, they will approve the cheaper stone.”
The matter is discussed again in the Sept. 15 commissioner minutes: “Kent said the commissioners need to address two wash outs on County Road 210. Kent Danford moved to approve the highway fixing the two wash outs and purchasing the stone at $15 a ton (double the amount discussed in the Aug. minutes) from Mark Milo. Kevin Kroft seconded the motion and it passed with two ayes, and one abstaining vote (MM).”
Circumstances surrounding that vote were unusual. The commissioners had recessed their regular meeting to hold an executive session, possibly for personnel matters. The stone purchase was discussed after they reconvened, and when most of the public had left. Minutes do not indicate why the executive session was held.
Norris is charged with selling county owned scrap metal during 2007, and pocketing the money. Details on that case are contained in a separate story.
Judge Kim Hall said a special prosecutor, Katherine O’Neill, will handle the cases.
Kathy Norem and Dan Bridegroom, both commissioners-elect who will be seated Jan. 1, issued a joint statement after learning of the arrests:
“We have learned about the arrests of John Norris, acting Starke County Highway Superintendent and Mark Milo, a county commissioner. While we were aware there was an ongoing investigation by the Indiana State Police, we had no information about its scope, findings or completion. We are deeply saddened about the arrests of these public servants.
“During the course of our respective campaigns, we each promised to act upon any finding of misconduct revealed by the investigation. We will fulfill that promise. We pledge a visible, transparent administration; the first step of which will be to adopt a written code of ethics at the commissioners' organizational meeting in January 2009.
“We will conduct ongoing educational sessions for all the county officials and employees to ensure that the public's interest in its government is protected.”
Milo was the only commissioner not up for re-election this year.
The Indiana State Board of Accounts did not return calls about The Leader’s request for a copy of the board’s audit of the highway department. That audit was one of four state audit reports on Starke County government released in September, but no copies are posted by the state.
Jury trials for both have been tentatively set for Feb. 25, 2009.
Milo is a Starke County native who was first elected commissioner in 2002, holding the 2nd District seat. He was reelected in 2006, defeating challenger Wilkus Minix 4,209 to 3,183 votes
Milo currently operates a construction business.
He was a member of the Bass Lake Fire Department for 11 years. He served one year on the Starke County Zoning Board before being appointed to three terms on the Knox planning and zoning boards, serving two terms as president of both.
In 2005, Milo was elected to the position of Northwest District President of the Indiana County Commissioners Association. He served on the ICCA executive board which is charged with duties to set policy for all county commissioners in the state of Indiana.
He is a 1972 graduate of Knox High School and 1997 graduate of Ball State University with a bachelor’s degree in political science with an emphasis in local and county government. He is married with three children.
Norris became acting highway superintendent upon the death of Superintendent Pete Stanojevic, who committed suicide in early 2008. He is married and has two children.
The Starke County Commissioners called an executive session for 10 a.m. Wednesday, Dec. 10, to discuss personnel, followed by a public session at about 11 a.m. The highway department now has no supervisor. Commissioner Kevin Kroft has been overseeing the department since Stanojevic’s death.