A New Albany business owner was arrested Thursday on several felony charges after an investigation that started last spring.
In April of 2022, Detective Tim Denby, with the Indiana State Police Special Investigations Section, began investigating Red Ink, Incorporated, a bar and adult entertainment company located at 1720 Old River Road in New Albany, Indiana.
Red Ink, Incorporated was doing business under the name of The Rustic Frog nightclub.
The business is solely owned by Donald R. Scott, 52, of New Albany. Detective Denby and a criminal investigator with the Indiana Department of Revenue conducted the investigation.
As a result of the joint investigation, it is alleged that Donald Scott utilized corrupt business practices and failed to pay Indiana sales tax in the amount of $132,542 over a three-year period from 2020 thru 2022.
Consequently, Detective Denby requested an arrest warrant thru the Floyd County Superior Court, and an arrest warrant was issued on March 16, 2022. Donald Scott was later arrested without incident on the following charges and incarcerated at the Floyd County Jail without bond.
- Corrupt Business Practices – Level 5 Felony
- Money Laundering – Level 5 Felony
- Money Laundering – Level 6 Felony (2 counts)
- Theft – Level 5 Felony
- Theft – Level 6 Felony (2 counts)
- Failure to Remit Taxes – Level 6 Felony (3 counts)