Debora Johnson-Nelms (left) and Robert Nelms (right) are charged with nine felony counts of theft, fraud and conspiracy. (Photos courtesy WRTV)
Story Created:
Jan 18, 2008 at 7:51 PM EDT
Story Updated:
Jan 27, 2008 at 5:28 PM EDT
INDIANAPOLIS — The couple accused of stealing millions from cemeteries across the state, including one in St. Joseph County, appeared in Marion County Superior Court Friday.
Robert Nelms and his wife Debora Johnson-Nelms are charged with nine felony counts of theft, fraud and conspiracy. Prosecutors say they stole more than $20 million from trust funds used to pay for long term upkeep of grave sites, including the Chapel Hill Funeral Homes and Memorial Gardens in Osceola.
They say the Nelms may have stolen more than $200 million from cemetery trust funds in Indiana, Michigan, New Jersey and Tennessee.
The family who sold the cemeteries to the couple says it's horrified by what's happened.
And Debora Johnson-Nelms now says she isn't involved at all. She says she is now estranged from her husband. They walked into the Marion County Courthouse separately for Friday’s hearing.
Debora Johnson-Nelms' attorney said she married Robert Nelms in Jamaica four years ago, but the paperwork was never found. So she contends the two are not legally married and she shouldn't face any charges.
"Our preliminary investigation shows that she is not involved other than being with Mr. Nelms," said Robert Schembs, Johnson-Nelms’ attorney.
Prosecutors paint a different picture. In court documents, they allege Johnson-Nelms was involved from the beginning.
They say she and her husband used the money in the cemetery maintenance trust funds to pay off the $13 million in debt he racked up buying the cemeteries in 2004. They also allege they used the money to buy a million dollar house north of Indianapolis. Investigators say Robert Nelms then hid the loss through a complex series of bank accounts.
Those who have loved ones buried at Chapel Hill Cemetery say they've been betrayed.
"It upsets you,’ said Noel Swanson. “If money was there for a purpose, and it's being misused, sure it's going to upset you."
The family that sold the cemeteries to the Nelms also feels that way. Now it says it wants to help clean up the mess. It plans to ask a court to allow the family to oversee the cemeteries until everything is sorted out.
“I mistrust what happened,” said Jim Meyer, a family spokesman. “This is sensitive for our family. These families are near and dear to us. And hopefully all services and merchandise will be delivered for these people.”
Robert Nelms' attorney had no comment. The couple faces up to 10 years in prison if convicted. The couple's assets have been frozen.
To contact the Indiana Attorney General about this case, call 1-800-223-8791.
