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A Milroy man was arrested after allegedly taking money for a construction project in Kosciusko County and never completing it.
Larry G. Hilty, 36, Milroy, is charged with theft, a level 6 felony. He was booked into the Kosciusko County Jail at 2:01 p.m. Sept. 22 on a $15,500 preliminary bond.
According to the probable cause affidavit, on July 11, 2024, an Indiana State Police detective met with a man in reference to a theft investigation.
The man said on or about Aug. 31, 2023, the man paid Hilty $46,000 to construct a 30-foot by 30-foot by 10-foot structure him on his property in Kosciusko County. The man alleged no work had been completed.
During the investigation, the man provided a cancelled check drawn from his bank account paid to Hilty’s company for $46,000. The check was cashed on or about Sept. 1, 2023. The project start date was listed as December 30, 2023.
According to the man, the date was pushed back by Hilty several times. The man said Hilty told him there were three buildings in progress and the man was ninth on the list. The man also said he asked for his deposit back and Hilty said the money had been used on other projects. The man said as of July 11, 2024, his project had not been started and Hilty had not returned his deposit as requested.
During the investigation, the detective spoke to a former employee who said Hilty didn’t leave any operating costs in reserve and just kept spending money, while pumping money in to advertising and his man cave project. The former employee said at the time of her termination, she knew of 15 clients who had made down payments on buildings and nothing was done.
The detective spoke with a second former employee, who said Hilty was gambling all the time.
Financial records for Hilty showed between December 2023 and August 2024, Hilty spent over $10,500 at restaurants and made over $14,780 in ATM withdrawals. These expenses coincided with Hilty delaying the man’s construction project and failing to refund his deposit.
As of Sept. 15, 2026, no work has been completed, and the man hasn’t been refunded.
