Plainfield, Ind. — Two former correctional officers at the Plainfield Correctional Facility have been charged with multiple felonies, including official misconduct, theft, and fraud, in a payroll scam uncovered by the Indiana Office of the Inspector General (OIG).
Sandra Vargas and Jacob Kauth are each facing Level 6 felony charges for their alleged involvement in a scheme where Vargas was paid for shifts she did not work, with Kauth allegedly approving the false time entries.
According to court records obtained by FOX59/CBS4, the OIG launched an investigation on Nov. 20, 2024, following an internal Department of Correction (IDOC) audit. The audit revealed that Vargas was paid for 98 hours she allegedly didn’t work between March 18 and May 19, 2024, totaling $3,163.90 in unearned wages. Surveillance video reportedly showed she was not present during the claimed shifts, and no time slips were submitted.
Kauth, who had served in multiple supervisory roles since joining IDOC in 2018, allegedly falsified Vargas’ time entries. During an interview, he admitted to doing so to help ease her financial burden, especially after the two began living together in July 2023.
Investigators say Vargas acknowledged knowing she was receiving unearned pay. She admitted she used the funds for groceries, pet supplies, and household items, and gave part of the money back to Kauth. Despite this, she did not report the overpayments to IDOC or attempt to return the stolen funds.
Both Vargas and Kauth were terminated on June 18, 2024. Arrest warrants were issued on May 1, 2025, by Hendricks Superior Court 4. As of this writing, the Indiana Department of Correction has not commented publicly on the case.
