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FBI serves search warrants at Muncie City Hall; mayor releases statement

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MUNCIE, Ind. – An FBI investigation is underway at Muncie City Hall.

A spokeswoman for the FBI would only say that the Bureau was conducting “investigative activity” at Muncie City Hall. Search warrants were being served at the Building Commissioner’s Office. A sign on the door said the office was temporarily closed. Multiple agents were inside searching.

FBI agents brought out dozens of boxes of paperwork from The City Building Commissioners Office. Many of the boxes read “Reports” and “Permits” from 2015. The FBI will not comment on what they are searching for, however, many sources tell FOX59, they believe the investigation stems from questionable contracts with city building commissioner, Craig Nichols.

Nichols previously filed conflict of interest forms with the city for his company Captiol Consulting and Property Management. His company also received hundreds of thousands of dollars from the city for work done, many for demolitions and asbestos removal. Nichols also filed a conflict of interest form for another company, Advanced Walls and Ceilings which also received city invoices.

Last August a FOX59 Investigation showed how the Muncie Sanitary District was purchasing homes for more than their valued worth. One of Nichols companies was paid to do asbestos removal on some of those homes.

Sources tell FOX59, the FBI was also serving search warrants at Nichols home.

No further details regarding the investigation were available from the FBI.

However, Mayor Dennis Tyler said in May that the FBI was investigating the city. He didn’t specify the reason behind the investigation but said his office was cooperating.

Tyler released a statement about Thursday’s operation:

“The FBI is conducting a search of the Building Commissioner’s Officer here at the City Hall this morning. The City intends to cooperate fully in this investigation, and looks forward to a complete and early resolution of any issues.”