May 20 arrest at Bally's Hotel & Casino could have broader implications

EVANSVILLE — Police in Evansville on May 20 arrested a Gibson County, Indiana, man whose home was searched earlier this month by the FBI in connection with 25-year-old Andi Wagner's disappearance, though he has not been named a person of interest or a suspect in that case.

Kyle Aaron Dersch's arrest last Monday was for accusations that Dersch, 29, brought two handguns − one of which police believe was stolen − to Bally's Casino & Hotel along with a firearm suppressor, ammunition and marijuana.

Evansville Police Department officers booked Dersch, of Oakland City, into the Vanderburgh County jail for the alleged firearms offenses, which include a charge of possession of a firearm by a serious violent offender.

Prosecutors are expected to file formal charges Wednesday morning.

Dersch already had a warrant out for his arrest in Vanderburgh County for alleged narcotics dealing, court records show. As of Friday, he was being held at the jail without bond.

Arrest comes after feds, police search Oakland City home

According to police records, Wagner's family reported her missing from Evansville on Aug. 12, 2022. No one has publicly come forward to say they've seen Wagner since — a grueling fact that has taxed the lives of Wagner's close relatives and friends.

To add another tragedy atop the mountain of grief Wagner's loved ones have endured, Wagner's mother, Elaine Garcia, died last year after searching in vain for clues that could lead to her daughter's whereabouts.

But on May 7, Wagner's family got a boost when the FBI and local law enforcement searched an Oakland City home in the 11000 block of County Road 200 South, among other nearby sites.

Public real estate records link the address to Dersch, though he does not appear to be the property's owner, according to Gibson County Assessor documents.

Dersch's name and contact information are also listed in Wagner's initial missing person report, and he has long been a focal point for Wagner's family and supporters, who have conducted searches in and around Oakland City and in Evansville.

Sgt. Trudy Day of the Evansville Police Department said the recent searches in Oakland City pertained to the ongoing investigation into Wagner's disappearance.

"Evidence was collected by authorities and sent to the state lab for testing," Day wrote in a May 8 news release. "The Evansville Police Department continues to attempt to locate Andi Wagner, and anyone with information is encouraged to call EPD at 812-436-7979 or contact the FBI."

Dersch was not at the property when officers executed the search warrant, the police said, and investigators have not publicly named him as a suspect or a person of interest.

"He (Dersch) is wrapped up in a long-term narcotics case," Day said when asked if his arrest this week had any connection to the Wagner investigation.

"I hope we get a break (in Wagner's case) and that we get a break soon," she added.

According to Day, a judge signed off on the request to search the home along County Road 200 South in May after the FBI "received a tip in reference to a missing person."

The contents of the search warrant application were sealed as of Thursday.

Police: April hit-and-run incident led to Kyle Dersch's arrest

According to Dersch's arrest affidavit, the police were alerted to his presence at Bally's Casino & Hotel after the victim of a hit-and-run wreck dialed 911 to declare that the offending vehicle, a GMC Yukon, appeared to have parked at Bally's.

The caller told police that he had searched for the missing GMC since April 26.

With the help of hotel staff, police traced the GMC Yukon to two of Bally's guests, one of whom was Dersch. According to detectives, Dersch "became erratic" while being placed under arrest.

Dersch had reportedly stayed in Room 1025 of the hotel with a woman who later admitted to the police that she had purchased the GMC Yukon on Facebook Marketplace from the driver who was involved in the earlier hit-and-run.

When detectives searched the hotel room, they allegedly recovered a stolen "rose gold" 9mm handgun; a .38-caliber Smith & Wesson revolver; bags of ammunition; a firearm suppressor; more than an ounce of marijuana and two cell phones.

Both firearms were loaded and had a round chambered, according to the police. During an interview with detectives, Dersch allegedly said the marijuana, guns and suppressor belonged to himself.

Dersch is scheduled to appear Friday morning in Vanderburgh County Superior Court, a docket entry states.

Prosecutors filed motions Thursday notifying the court of their intent to seek sentencing enhancements that could lengthen Dersch's prison term if he were to be found guilty in the firearms and narcotics cases.

Houston Harwood can be contacted at houston.harwood@courierpress.com

This article originally appeared on Evansville Courier & Press: May 20 arrest at Bally's Hotel & Casino have broader implications