Owner of Scottsburg business arrested on fraud, theft charges

LOUISVILLE, Ky. (WAVE) - A Scottsburg business over was arrested Friday on several felony charges after an investigation from the Indiana State Police that began in March, according to a release.

In March, a business vendor and potential fraud victim contacted Detective Tim Denby with the Indiana State Police Special Investigations Section. Police said the vendor alleged fraudulent business practices by John Christopher Gibbs, the owner of Gibbs Innovative Manufacturers Inc. in Scottsburg, Indiana.

The vendor said Gibbs paid for services with a fraudulent check. That check was for an amount over $10,000, according to ISP.

As a result of the investigation, Denby believed Gibbs knowingly wrote the check the day after closing the associated checking account.

As the investigation continued, Denby learned about multiple vendors who were potential victims. Those vendors included various contractors in southern Indiana and a local financial business.

The suspected fraudulent or stolen money totaled over $302,000, officials said.

The Scott County Circuit Court issued an arrest warrant for Gibbs, 57, of Louisville for one count of corrupt business practices, five counts of level five fraud, three counts of level five theft, two counts of level six fraud and four counts of level six theft.

Kentucky State Police detectives arrested Gibbs at a hotel in Simpsonville, Kentucky that he was living in. KSP also arrested Gibbs on related warrants from Kentucky, Tennessee and Georgia.