Indiana Attorney Accused of Stealing From SNTs Is Suspended

The Indiana Supreme Court has suspended an attorney for failing to cooperate in an investigation into police allegations that he stole money from the special needs trusts of his clients.    

The Indiana State Police allege that Indianapolis attorney Kenneth S. Service stole more than $85,000 from two special needs trusts (SNTs) that he opened and administered for clients.  Service has been charged with felony theft in those two cases.  State police investigators know of as many as 17 other possible cases of money missing from SNTs that Service was involved with and believe that there may be “numerous victims in multiple states.”  So far, in addition to Indiana, investigators are looking at trusts in Florida and West Virginia.  The investigation has grown so large that state police referred the case to its Special Investigation Section and the FBI, although the FBI declined to take the case.

In the charging information, Service is alleged to have used funds from clients’ special needs trusts for his own personal expenses, including casino trips and his dry cleaning.  He would typically appoint himself as trustee after setting up the trust. Investigators and other Indiana attorneys have intervened to remove Service as trustee of many of the SNTs he established.  There are allegations that several hundred thousand dollars may be missing from trusts he administered.  In some instances, it appears that trust accounts he was retained to set up never were established.  The impact on some of Service’s clients has been devastating, according to one of the detectives involved in the case. 

Service’s attorney, Mary Higdon, cautions against rushing to judgment.  “Just because there are so many allegations out there doesn’t mean he’s guilty of anything,” Higdon said.  Service plans to defend himself against the charges, according to Higdon. 

For a detailed account of the investigation from The Indiana Lawyer.com, click here

To read the Indiana Supreme Court’s order, In re Service (Ind., 49S00-1703-DI-144, June 1, 2017), click here