INDIANAPOLIS -- 6News has learned that the FBI is investigating a growing group of Indiana residents who claim to be outside the law after their leader was convicted in a car theft scheme. The so-called "sovereign citizens" group, Guardians of the Free Republic, believes members are exempt from state and federal laws and that they are entitled to money held by the U.S. Treasury.
The leader of the Indiana chapter, Walter Eugene Lunsford, was recently convicted of four counts of fraud and four counts of theft, 6News' Rafael Sanchez reported.
Lunsford used the routing number of the Federal Reserve and his own Social Security number as his account number to buy five vehicles over several months from Capitol City Ford in Indianapolis.
But prosecutors said the scheme fell apart when other members of the group tried to do the same thing.
"He wanted all the rights associated with his citizenship, however, he didn't want to take any of the responsibility for his actions," said Marion County Deputy Prosecutor Mary Hutchison. "This is a situation where someone took our taxpayer money and thought he was above the law."
Lunsford's daughter sent Judge Grant Hawkins a letter saying her father did not intend to defraud anyone, and that he and his friends felt they came across some secret, referring to the scheme.
Lundford faces up to 10 years in jail when he is sentenced on Monday.
6News investigated the "sovereign citizens" movement in Indiana earlier this year.
A source with knowledge of the current FBI investigation told Sanchez that several people 6News spoke with or investigated are suspected of being part of the Guardians of the Free Republic group.
Those individuals include Donald Moore, who showed Sanchez a badge and ID that he said stopped police from pulling him over or they'd face a $2 million fine, and Brad Henry, who sent a letter to the Delaware County assessor's office saying his home was an embassy and that he was exempt from property taxes.
A person police in Pendleton pulled over using a fake license plate is also believed to be a part of the Guardians of the Free Republic.
