Randolph County couple charged with welfare fraud

WINCHESTER, Ind. — Indiana State Police allege that when a Randolph County couple applied for and received assistance in paying their rent, they failed to tell local officials they owned businesses and properties in Louisiana.

Kenneth Dale Stumpff, 71, and Letitia Pence Stumpff, 59, of Union City, have been charged in Randolph Superior Court with welfare fraud and fraud, both Level 6 felonies carrying up to 30 months in prison.

According to court documents, the Stumpffs in 2020 applied for assistance from the Union City Housing Authority, maintaining that their only income came from Kenneth Stumpff's monthly Social Security check.

The housing authority began supplying $332 of the couple's monthly $550 rent payment.

When their monthly rent was raised to $575, the housing authority's share of the payment increased to $435. The rent assistance apparently continued for three years.

According to a report by a state police detective, it was subsequently discovered the couple "had other jobs and sold a house in Louisiana for $62,000 and did not report any of that income" to officials in Union City.

A housing authority official also said it was determined the Stumpffs owned two "active businesses (in Louisiana) that are generating income."

It was also learned the couple had been employed, while receiving assistance, by a trucking firm delivering RVs, an affidavit stated. Another court document alleged the couple received $12,130 in undeserved housing benefits.

At a June 2023 housing authority meeting, the Stumpffs reportedly maintained they were unaware they had an obligation to report income earned in states other than Indiana.

The Stumpffs also told officials they did not file federal income tax returns.

At the 2023 hearing, Kenneth Stumpff maintained he had not worked for the trucking firm since 2019, but the state police detective later reported he confirmed both Stumpffs had worked for the firm through 2023.

When interviewed by the detective in March, Kenneth Stumpff said he did not know he and his wife had to report the income from selling the house because it was "located in Louisiana and not Indiana."

He also maintained he was not required to file income tax returns because of his age.

A trial date has not yet been set in the case.

Douglas Walker is a news reporter at The Star Press. Contact him at 765-213-5851 or at dwalker@muncie.gannett.com.