Indiana – A Yorktown contractor is facing federal bank fraud charges after prosecutors said a renovation project in Muncie was used to pull $188,000 from a construction loan through paperwork that was allegedly false.
Richard Turner, 38, owner of Turner Remodeling LLC, has been charged in a federal indictment with nine counts of bank fraud, according to the U.S. Attorney’s Office for the Southern District of Indiana. The case centers on lien waivers, documents meant to show that subcontractors had been paid for work tied to a construction project.
Court documents say Company A, identified as a healthcare facility in Muncie, hired Turner in March 2025 for an expansion and renovation job. The project was backed by a construction loan of about $785,225 from Bank A, obtained on April 5, 2024. Under the loan agreement, the bank would not release money unless Turner provided lien waivers showing that subcontractors had been paid for services, including plumbing and electrical work that Turner Remodeling LLC did not perform.
Prosecutors allege Turner used that requirement as part of the scheme. Instead of submitting genuine documents, he allegedly sent Bank A falsified lien waivers claiming five subcontractors had completed work they never performed. The indictment also accuses him of forging signatures from subcontractors who had not agreed to do the renovation work.
Once the funds were released, Turner allegedly used the money for personal expenses, including gambling. Federal prosecutors said the alleged fraud involved nine fabricated lien waivers and totaled $188,000.
The case is being investigated by the FBI Indianapolis, through its Muncie Resident Agency. Assistant U.S. Attorney Adam Eakman is prosecuting the case, and U.S. Attorney Wheeler thanked him for his work.
If Turner is convicted, his sentence will be decided by a federal district court judge. The judge would consider the U.S. Sentencing Guidelines along with other statutory factors before imposing any penalty.
