Lawmakers seek solutions in wake of investigation of sexual abuse at Pierceton Woods

An Indiana lawmaker plans to push for new regulations for youth treatment centers in response to an IndyStar/ProPublica investigation of sexual abuse allegations at Pierceton Woods Academy.

State Rep. Victoria Garcia Wilburn, D-Fishers, said in an op-ed Tuesday she will pursue legislative language that would require the state's child welfare agency to investigate all allegations of abuse at residential facilities and suspend referrals if a facility repeatedly fails to report abuse.

She said the proposals are a response to "regulatory shortcomings" identified in an investigation published last week by IndyStar and ProPublica that found that the Indiana Department of Child Services continued to send children to Pierceton Woods, despite evidence in the agency's own files that they might not be safe there.

Reporters found that DCS received at least 27 reports of suspected sexual abuse or inappropriate behavior by female staff at Pierceton Woods since 2017. Two employees have been prosecuted and DCS substantiated a sexual abuse allegation against a third.

Despite repeated allegations, DCS did little to crack down on Pierceton Woods. It allowed the facility's reporting policy to remain largely unchanged and declined to investigate at least 17 reports of suspected abuse by Pierceton Woods staff members from 2017 to 2021, according to an examination of emails disclosed as part of a civil lawsuit filed on behalf of a boy whose claims of abuse at the facility were substantiated by DCS.

In at least two cases, records indicated DCS declined to look into allegations against staffers later found by police or subsequent DCS investigation to have abused residents.

Some of those cases were screened out because the resident had turned 18 by the time the report was made. Other reports, however, involved teens who were not yet adults. DCS has not provided an explanation for why reports involving children were screened out.

'Where's the accountability?'

In an interview Tuesday, Garcia Wilburn said DCS needs to investigate all allegations at residential facilities, including those involving youth age 18 or older.

"If a child goes in at 17 and ages out, DCS still has responsibility to follow that child until they’re discharged," she said. "These are the most vulnerable children in our community. These are the most traumatized children ... This is about empowering DCS to do their job."

She said facilities like Pierceton Woods that contract with DCS need to have a culture of immediately reporting abuse "at whatever the cost, even if it puts your institution in a bad light."

"I’m just not seeing that at this particular residential community," she said. "And so I can’t imagine what else is happening around the state and nationwide."

She's not the only one expressing concern. Sen. J.D. Ford, D-Indianapolis, called the findings of the IndyStar/ProPublica investigation "shocking."

"This facility is getting state taxpayer dollars," he said. "Where's the accountability?"

He said he is also exploring legislation and has requested a meeting with DCS Director Eric Miller, who was appointed by Gov. Eric Holcomb in May.

It's not clear if the legislative proposals will find broader support in the Republican-controlled General Assembly when lawmakers return for the 2024 legislative session in January. House Speaker Todd Huston and Senate leader Rodric Bray did not respond to inquiries from IndyStar.

What does the governor say?

Holcomb said last week he hadn't read the story yet, but he said "allegations need to be followed up on and yes, I'm concerned when maybe our most vulnerable minors are alleged to have been violated. We will continue to follow-up on that.”

His office did not respond to follow-up questions from IndyStar last week and this week.

DCS said in August it is "currently engaged in a re-examination of all residential facility reporting policies and is requiring facilities that do not clearly detail their responsibilities under Indiana law to make the necessary changes immediately.”

The review came after inquiries from IndyStar and ProPublica about shortcomings in Pierceton Woods' reporting policy. IndyStar has asked multiple times for an update on the review, but DCS has not provided any additional information.

'The audacity of Lasting Change'

Garcia Wilburn and Ford said the lack of transparency surrounding the abuse allegations and DCS's response is deeply concerning.

They blasted Lasting Change, the faith-based Fort Wayne nonprofit that manages Pierceton Woods, for lobbying lawmakers for liability protections earlier this year without disclosing what Garcia Wilburn called a "culture of abuse and negligence."

Lawmakers were poised to add a version of the immunity proposal to an unrelated bill during the final days of the legislative session in April, but they quickly stripped the language after an IndyStar story detailed sexual abuse allegations at Pierceton Woods.

"The audacity of the Lasting Change organization here is profound — failing to report abuse, seeking state protection against lawsuits by victims, all while receiving hundreds of millions of taxpayer dollars from DCS," Ford said in a recent post on X, formerly known as Twitter. "All involved must be held accountable."

Lasting Change officials have not said whether they plan to pursue the immunity legislation again during the upcoming legislative session.

Based in Fort Wayne, Lasting Change also provides a wide range of child services across the state through its Lifeline Youth & Family Services, one of DCS’ largest contractors. Together, Lifeline and Pierceton Woods have received about $250 million from DCS since fiscal year 2017, according to state spending records.

A spokesperson for the organization did not respond to questions about lawmakers' concerns.

Too big to fail?

The repeated abuse allegations have raised questions about why DCS didn't take stronger action.

In a recent interview on the Real Faith Stories podcast, Lasting Change's former longtime CEO Mark Terrell did not address the allegations of abuse, but he did discuss the organization's relationship with state officials.

After explaining the role his Christian faith played in the rapid growth of Lifeline, Terrell described the organization's relationship with the state as "contentious."

"The state doesn't like organizations of faith," he said.

He did not mention that former Vice President Mike Pence spoke at a fundraiser for one of Lasting Change's companies while he was governor. Pence also appointed Terrell to a board that nominates judges in Allen County, where Lasting Change is based. Another former Lifeline official served as chief of staff to Pence's wife, Karen.

Terrell said the nonprofit’s status as the state's largest DCS contractor helped protect it from those in government who might want to sever the relationship.

“It’s funny, because we became so big, got so many contracts — we’re in 4,000 homes a week — to a place so big if they had wanted to get rid of us, then it would have been almost virtually impossible," he said. "That's God's sense of humor."

In an email Thursday after this story was initially published, a spokesperson for Lasting Change said the company does not agree with Terrell's characterization of its relationship with the state, but did not elaborate. The email noted Terrell retired retired at the end of 2022 "and no longer speaks for Lasting Change or any of its subsidiary operating divisions."

Contact IndyStar reporter Tony Cook at 317-444-6081 or tony.cook@indystar.com. Follow him on Twitter: @IndyStarTony.