Muncie Mayor Dennis Tyler arrested by FBI agents

Douglas Walker , Corey Ohlenkamp | The Star Press

Show Caption Hide Caption Muncie mayor arrested: A timeline of FBI corruption probe in Muncie From early whispers of an investigation in 2016 to Mayor Dennis Tyler's arrest, here's a timeline of the FBI's corruption probe into Muncie city government.

MUNCIE, Ind. – Muncie Mayor Dennis Tyler was arrested Monday by FBI agents at his northside home.

'I can confirm an arrest warrant was executed at the home of Mayor Dennis Tyler this morning and he is currently in custody," Christine Bavender, a spokesperson for the FBI, told The Star Press.

The doors to the mayor's wing at City Hall, normally open during business hours, were closed about 9 a.m. Monday. A sign that frequently hangs on that door when the offices are closed said, "Out to lunch. Will return shortly."

U.S. Attorney Josh Minkler scheduled a press conference, with FBI agents, to discuss the arrest and charges. Tyler is accused of accepting a $5,000 bribe in exchange for what federal authorities said was "steering lucrative excavation work to a local contractor."

According to the indictment, Tyler received the cash from Tracy Barton, the Muncie Sanitary District’s superintendent of sewer maintenance and engineering, for “awarding of contracts under Tyler’s influence.”

A federal investigation of allegations of corruption in and near the Tyler administration has been under way for nearly four years.

The probe apparently began in early 2016 with allegations against Craig Nichols, at that time Tyler's building commissioner.

►RELATED: Who might serve as Muncie mayor in wake of Dennis Tyler arrest?

Last January, Nichols pleaded guilty to wire fraud and money laundering, and was sentenced to two years in federal prison.

Others charged in the federal corruption probe to date include Nikki Grigsby, the Muncie Sanitary District administrator arrested on bid-rigging allegations in July; Tracy Barton, another MSD official; and local businessmen Jeffrey Burke, Tony Franklin and Rodney Barber.

Bavender referred all other questions concerning Tyler's arrest to the U.S. Attorney's office in Indianapolis. Federal authorities reportedly made no other arrests in Muncie on Monday.

A memo filed by federal prosecutors prior to Craig Nichols' sentencing in January alleged that in the wake of allegations against the building commissioner in 2016, city officials – including Tyler – held meetings at Democratic Headquarters with, among others, the building commissioner's father, longtime party insider Phil Nichols.

That document alleged another Tyler department head, street commissioner Duke Campbell, at some point was recruited to arrange for fraudulent bids to be collected in a bid to spare the younger Nichols from prosecution.

Campbell has not been charged in the investigation.

Steve Stewart, who had been Muncie police chief and Democratic party chairman, said he was also summoned to the political party headquarters in 2016 for meetings with Tyler and Phil Nichols.

Stewart said he declined to launch a Muncie Police Department investigation that Tyler and Nichols demanded because he felt it could interfere with the ongoing federal probe that concerned Craig Nichols.

The resulting conflict resulted in Stewart's resignation – as both police chief and party chairman – and a lawsuit against the city and Tyler, later resolved in an out-of-court settlement.

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Tyler's term in office ends Dec. 31.

Last January, he announced he would not seek a third term as mayor. Republican Dan Ridenour this month won the 2019 mayoral race over Democrat Terry Whitt Bailey, Tyler's Community Development director.

Tyler is believed to be the first Muncie mayor arrested while in office in a century. In 1919, Rollin H. Bunch, a Democrat and local physician, resigned from the city's highest office after he was charged – and later convicted – of a federal mail fraud charge.

Bunch, who served a brief prison term, later received a presidential pardon, and was elected to another term as mayor in the 1930s.

PAST FBI INVESTIGATION COVERAGE:

►TIMELINE: FBI probe into city of Muncie

►JULY 2019: Two arrested, including head of Muncie Sanitary District

►JUNE 2019: Muncie businessman indicted in FBI investigation

►JUNE 2019: FBI returns to Muncie for more raids

►MAY 2019: Tracy Barton's federal corruption trial rescheduled for December

►MARCH 2019: Mayor Dennis Tyler discusses Nichols, legacy during final year in office

►FEBRUARY 2019: Businessman Jeffrey Burke wins another delay of federal trial

►JANUARY 2019: Craig Nichols sentenced to two years in federal prison

►JANUARY 2019: Feds detail concerted effort to hide Nichols' crimes in sentencing memo

►JANUARY 2019: Feds sentencing memo on Craig Nichols: What did the mayor know, and when?

►OCTOBER 2018: Feds win protective order in Tracy Barton case

►SEPTEMBER 2018: Muncie official, businessman charged by feds

►JANUARY 2017: FBI executes search warrant at city hall

►MAY 2016: FBI investigating Muncie city government

(This story will be updated.)

Douglas Walker is a news reporter at The Star Press. Contact him at 765-213-5851 or at dwalker@muncie.gannett.com