ANGOLA, Ind. (WLKI)- A Lake James woman is facing a felony charge after authorities say she accepted $31,000 through a rent-to-own agreement involving property she did not own.
Nicole M. Kelly, 44, was arrested Friday at the Steuben County Sheriff's Office and charged with Level 6 felony fraud.
According to a probable cause affidavit filed in Steuben Superior Court, deputies responded to a fraud complaint in the 400 block of North County Road 900 West at approximately 1:05 p.m. July 4.
The woman who filed the complaint told investigators she had paid Kelly $31,000 over two years as part of a rent-to-own agreement. She later learned Kelly did not own the property and allegedly did not have the authority to enter such an agreement.
Court documents state the woman previously boarded horses with Kelly. In October 2024, Kelly allegedly offered to sell her the Steuben County property for $58,000. The agreement called for a $10,000 down payment followed by monthly payments of $1,000.
The woman reportedly made the initial payment and began paying Kelly that same month. She made her final payment in June, when she was contacted by the property's legal owner.
Investigators said the owner had entered into a separate contract with Kelly in 2013. That agreement reportedly prohibited Kelly from leasing the property or allowing another person to occupy it without the owner's prior written consent.
The owner told deputies that several checks from Kelly had been returned by the bank. Court documents state Kelly later told him about the agreement she had made with the other woman.
Kelly told investigators she was attempting to help the woman obtain property she was no longer interested in keeping. She said she had been giving the monthly payments to the owner and planned to transfer the property after completing her own contract.
According to the affidavit, Kelly told police she believed she was doing the right thing. However, court records state none of the $31,000 had been returned at the time the case was filed.
A Level 6 felony in Indiana carries a possible sentence ranging from six months to two-and-a-half years, along with a potential fine of up to $10,000.
The charge is an allegation, and Kelly is presumed innocent unless and until proven guilty in court.