Charity's Records, City-County Councilor Under Investigation

INDIANAPOLIS -- A City-County councilor is under investigation for his role in a charitable foundation now missing close to $1.5 million, investigators said.

Last week, Marion County grand jury investigators served search warrants on the headquarters of the Russell Foundation, 6News' Jack Rinehart reported.

Court records show investigators seized computers, IRS records, credit card statements and other business documents from the Christian-based not-for-profit.

Authorities are investigating missing funds that could total as much as $1.5 million, according to court records, Rinehart reported.

City-County Councilor Paul Batemen, who, according to the foundation's Web site, serves as its chief operating officer, was named in the search warrant.

Bateman spoke from behind his door to Rinehart Thursday afternoon. He said he couldn't comment on the Russell Foundation but that he had done nothing wrong.

The foundation -- which lists its mission as trying to develop rail- and ethanol-related economic ventures that benefit minority workers and contractors -- has declared bankruptcy, citing the issue of the alleged misappropriation of money.

The foundation's attorneys released a statement Thursday afternoon saying Bishop Michael Russell himself initiated the investigation.

"The Russell Foundation and Bishop Michael Russell welcome the investigation by authorities into the disappearance of hundreds of thousands of dollars from Foundation bank accounts during 2006 and 2007," the statement reads. "The Foundation initiated the request that this matter be fully investigated, and will continue to provide full cooperation with the investigators assigned to the case."