Indy Tax Case: Judge Says Prosecutors Broke Law
INDIANAPOLIS — A Marion County judge has dismissed the criminal case against Broad Ripple business owner Robert Sabatini, ruling prosecutors violated his constitutional rights by pulling his tax records without a warrant or any evidence of wrongdoing.
The judge said prosecutor’s investigator Carmen Walker picked 11 Broad Ripple businesses to review after searching online and using Yelp, even though she had no evidence of a crime.
Court documents say Walker started requesting tax records from Broad Ripple businesses after receiving a 2023 directive to “look into” them.
The judge said Walker sent letters to the Indiana Department of Revenue falsely claiming the businesses were under a “criminal investigation” when no such investigation existed. Those letters, signed with the prosecutor’s electronic signature, allowed her to obtain confidential state and federal tax records.
The order also criticized Indiana Department of Revenue employee Rick Albrecht, saying his testimony showed he lacked basic knowledge of accounting principles and industry standards. The judge pointed out that Albrecht and Walker could not explain common terms like markup, cost of goods sold, or gross profit margin.
The court ruled the tax record search violated the Fourth Amendment and the Indiana Constitution, calling it a “fishing expedition” that lacked probable cause. The judge also rejected later investigative subpoenas, finding they relied on “false and misleading statements” about accounting practices and bar industry standards.
The ruling also states that the prosecutor’s office exceeded its authority under Indiana law. Only the Department of Revenue can audit tax returns or determine whether a taxpayer’s filings are accurate, and the judge wrote that prosecutors had “no law enforcement need” to conduct their own tax analysis.
The judge’s ruling closes the case that grew out of a broader probe into Broad Ripple businesses.
