James LeDonne, the owner of Paragon Technology Group, was arrested on Monday after a federal grand jury indicted him of fraud last week. Ledonne, 59, faces eleven counts of wire fraud, three counts of mail fraud, one count of conspiracy to commit fraud, one count of bankruptcy fraud and one count of interstate transportation of stolen goods. He is scheduled to be arraigned on Thursday at 2:00 p.m.
The indictment alleges that LeDonne accepted down payments for fiber-optic splicing vehicles ordered by contractors living outside of the Elkhart area. He most often never delivered these units to the customers despite promising various delivery dates. As part of the scheme, LeDonne used a series of fraudulent bankruptcies to avoid refunding money to the victims. He would then create a new company and victimize other prospective customers through the new company.
The charges of transporting stolen goods stem from an incident in 2012 when LeDonne obtained a built trailer from a customer by alleging that the vehicle had been recalled. He then took the same trailer and delivered it to a customer in Georgia after altering the vehicle identification number number.
The investigation of this case is being conducted by the Federal Bureau of Investigation, the United States Postal Inspector Police, and the Indiana State Police.
Court records show that LeDonne also received a five year prison sentence in 1993 after pleading guilty to orchestrating fraudulent check and check kiting schemes in Elkhart.