Two nonprofits former Clark County Sheriff Jamey Noel once operated are filing for bankruptcy.
The Utica Township Volunteer Firefighters Association, also previously known as New Chapel EMS, and the Utica Township Fire Department, Inc. filed the documents in federal court this week for Chapter 11 bankruptcy. That allows organizations to restructure their debt and operations.
Spokesperson S. Coy Travis said in a news release that, for nearly two years, the New Chapel board has worked through the impact of Noel’s criminal conduct. Noel is in prison for crimes including stealing from New Chapel.
“Unfortunately, the damage Jamey caused to the organization's reputation was simply too great,” Travis said in the release. “The public's trust was broken, and as a result, more than 70 years of dedicated public service has been tarnished.”
New Chapel EMS previously provided ambulance service to all of Clark and most of Floyd County, through government agreements.
The organizations lost fire and EMS contracts last year, as local officials brought in new providers amid the ongoing investigation. After losing its EMS headquarters, New Chapel announced it was stopping 911 service in Clark County.
Travis said the organization had 60-70 fire and EMS employees in recent years and hoped to expand.
“We had a hard time recruiting people. We had a hard time retaining people,” Travis told LPM News this week.
Travis said New Chapel has downsized operations and now focuses on providing convalescent runs. But he said finances are especially tight because ongoing litigation is stopping the organization from selling off assets — such as ambulances that aren’t paid off.
“We had to keep paying loans that we couldn't afford. We had to keep paying insurance that we couldn't afford. We had to keep paying storage and upkeep that we couldn't afford. And so our cash reserves ended up getting drained,” he said.
As of Wednesday, New Chapel-owned cars were also tied up in the investigation. They were to be returned as part of the recent plea agreement for Misty Noel, Jamey Noel’s estranged wife.
But the judge wants to set that plea aside, in response to comments Misty Noel made about her case in a TV interview. Noel has asked for a new judge, saying hers is biased.
Travis said he hopes the bankruptcy filing provides the company a path to move forward.
“For the last year and a half, we've just been struggling to keep our head above water,” he said.
He said New Chapel revised its mission to reflect the staff’s passion for training, convalescent care and other non-emergency ways to help the community.
Coverage of Southern Indiana is funded, in part, by Samtec Inc., the Hazel & Walter T. Bales Foundation, and the Caesars Foundation of Floyd County.
