Three top employees at the Indiana Department of Veterans' Affairs have resigned in the wake of an IndyStar investigation into the possible abuse of funds intended for needy veterans.

And in a separate development, Marion County Prosecutor Terry Curry has opened an investigation into possible criminal wrongdoing at the agency.

The resignations are part of a reorganization effort led by the agency's new director, Dennis Wimer, who has pledged to restore confidence in the IDVA after a series of IndyStar stories since November has exposed the possible misuse of more than $800,000.

The resigning employees — Deputy Director Matthew Vincent, Communications Director Adryanne Bonner and Director of Employment and Veteran Outreach Jeff Wirt — either approved or received grants or welfare benefits administered by the agency.

A criminal investigation launched

In addition to the personnel changes, a spokeswoman for Curry acknowledged Tuesday that the office has launched an investigation to determine whether any laws were broken.

The probe comes as a surprise because Indiana Inspector General Lori Torres had suggested in a report last month that prosecutors had reviewed her office's investigation and agreed with her assessment that there was insufficient evidence for criminal charges.

Curry's office now says it is conducting its own review.

"We did not formally decline prosecution and have opened an investigation into the matter," said Curry's chief of staff, Peg McLeish.

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McLeish said the prosecutor's office had informal conversations with an investigator from the inspector general's office, but did not see the final report or case file until it was made public last month.

"The only thing we had before this report was very informal conversations," she said.

She said there is no time frame for the investigation.

Stephanie McFarland, a spokeswoman for the inspector general's office, defended the IG report's assertion that prosecutors found insufficient evidence to support criminal charges. She said "that was the viewpoint expressed to the OIG agent at the time this specific finding was presented."

"The prosecutor, however, is always free to reevaluate," she said.

3 managers leaving IDVA

As for the personnel shakeup, Vincent, the agency's No. 2 and former acting director, resigned early last week in a letter to Gov. Eric Holcomb. A Marine veteran, Vincent had approved some of the grants that drew scrutiny in a state audit last year. His final day will be May 31.

Also stepping down is Communications Director Adryanne Bonner, who previously managed the agency's federal welfare program.

"At this time, I am submitting my letter of resignation so that the agency can move forward to positively impact and regain the trust of veterans," Bonner wrote May 6 to Wimer.

IndyStar had reported that Bonner and her boyfriend — both veterans — had received more than $10,000 in benefits, including child care and a couple's retreat at French Lick Resort and Casino. She earns a salary of $51,000.

Director of Employment Jeff Wirt, an Iraq war veteran, submitted his resignation letter on the same day as Bonner. Wirt earns nearly $50,000 a year but received $3,600 in military relief grants for expenses that included new tires and vehicle repairs, IndyStar found. Other veterans — including a woman living in a camper with her two children — were capped at $2,500 and denied benefits for similar expenses.

Wirt's final day is June 14, according to his resignation letter.

The departures follow that of former Director Jim Brown, who resigned in December just one week after IndyStar's initial story.

In an email Thursday informing veterans' affairs commissioners about the resignations, Wimer praised the employees for their "passion for serving veterans" and wished them well.

State officials did not immediately address whether any of the employees would be offered jobs at other state agencies.

IndyStar sought reaction from Gov. Eric Holcomb, who is ultimately responsible for the IDVA, but his office provided only a statement from January in which Holcomb says he has directed Wimer to "make any and all necessary changes to restore the confidence of the department and the trust of Hoosier veterans."

Contact IndyStar reporter Tony Cook at 317-444-6081 or tony.cook@indystar.com. Follow him on Twitter: @IndyStarTony.