Friday, October 29, 2010

10292010 - News Article - Gary official, reserve cop plead not guilty



Gary official, reserve cop plead not guilty 
Post Tribune
October 29, 2010
The director of Gary Community Development and a reserve Gary police officer pleaded not guilty Thursday to charges connected to a $300,000 mortgage fraud scheme. 

Jacquelyn Drago - Hunter , 60, director of the GCD, and Philip Rucker, 39, were charged last week in the U.S. District Court in Hammond along with Jerry Haymon and Sheila Chandler, a Schererville mortgage broker, of running a scheme that took in money from housing loans for work that Haymon's company, Priced Right Construction and Management LLC, had supposedly done on houses. 

According to the federal indictment, Haymon and others would convince people to let them help sell their properties. Haymon and others would then find people to buy the homes for more than the asking price, according to the indictment. He and others would then use the difference in the asking and payment prices to pay off liens that Haymon had filed against the homes, for renovation work done to the houses, prosecutors claim in records. 

Drago - Hunter , who is listed as owning Maximilian Title, is accused in the indictment of preparing false HUD-1 settlement statements and giving the loan money to Haymon. Rucker, who has been suspended from his duties as a reserve officer, is accused of recruiting one of the buyers and taking a kickback. 

Haymon was arraigned last week and pleaded not guilty. Chandler, who is charged in a separate but similar mortgage fraud scheme, has not yet appeared in court on the new charges. 

Drago - Hunter , wearing a black cape, spoke quietly and stumbled over some of her words as she answered U.S. Magistrate Andrew Rodovich's questions about her education and the indictment charging her with two counts of wire fraud and aggravated identity theft. Neither she nor her attorney, Kerry Connor, would comment on the case after the hearing. 

Drago - Hunter oversees federal stimulus funds and other money for Gary in her position with the GCD. Mayor Rudy Clay has said he supports her and won't ask her to step aside pend 

ing the outcome of the case.Rucker pleaded not guilty to two counts of wire fraud. 



A status case has been scheduled for Dec. 7, when all sides will discuss scheduling a trial date, Rodovich said. Assistant U.S. Attorney Gary Bell said he expects the case to last a little longer than a week. 

10292010 - News Article - Defendants accused of taking housing loan funds - Jacquelyn Drago-Hunter (left) walks out of court with her lawyer



Defendants accused of taking housing loan funds 
Jacquelyn Drago - Hunter (left) walks out of court with her lawyer
Post-Tribune (IN)
October 29, 2010 


Jacquelyn Drago - Hunter (left) walks out of court with her lawyer, Kerry Connor, after Drago - Hunter 's arraignment hearing where she pleaded not guilty to charges of wire fraud and aggravated identity theft Thursday at the Federal Courthouse in Hammond. 

Thursday, October 28, 2010

10282010 - News Article - Second subpoena delivered



Second subpoena delivered 
Post-Tribune (IN)
October 28, 2010 

GARY -- A probe of money spent on Gary's downtown Dalton Arms building continued this week when a federal agent dropped off a subpoena at the Gary-East Chicago-Hammond Empowerment Zone, an official said. 

Scott Upshaw, the agency's director, said a Merrillville-based agent delivered the subpoena Monday. Upshaw said it seeks all records related to a $2.5 million loan from the Empowerment Zone to Gary Progress Development. 

That loan, Upshaw said, was granted in June 2008. 

"We're making sure that we give them everything," Upshaw said. 

Gary City Hall received a similar subpoena in late September, its city attorney has said. That request came from agents based in South Bend, who sought records related to a $2.9 million loan from the city's community development office to Gary Progress Development. 

City Attorney Carl Jones said Gary turned over documents dated between 2003 and 2007, when the transaction took place. 

The loan preceded the hiring of Jacquelyn Drago - Hunter , Gary's current director of community development. She accepted her job there in 2008 and now faces federal fraud charges in an unrelated case. 

Gary Progress Development's Shawn Loyden, who is based in Florida, said last week he didn't know about the subpoena at City Hall until he read about it in the newspaper. 

However, he and the Mishawaka-based Sterling Group of Companies said they are continuing their work to renovate the dilapidated high-rise. 

Sterling Group partnered with Gary Progress Development this summer under the name Dalton Apartments LLC. It was recruited by a state agency that is directing $9.4 million in tax credits to fund the project. 

Lance Swank, Sterling's chief operating officer, said his company is cooperating with the federal probe. 

"We've been assured that this has nothing to do with the current activities," Swank said. "There are no issues concerning future funding." 

Developers, including Loyden, have promised to fix up the building since the mid-1990s. The project languished until this summer's deal was struck by Loyden and Sterling Group. Now, crews have been working there on a regular basis.Plans call for a 57-unit apartment building with retail on the ground floor. The new agreement gives the developers until Sept. 30, 2011, to finish their work. 

Probe continues into Dalton Arms spending.



The Dalton Arms project has been on and off for years. -- andy lavalley/post-tribune file photo 

10282010 - News Article - Grimes wants Clay to suspend Drago-Hunter



Grimes wants Clay to suspend Drago-Hunter 
Post-Tribune (IN)
October 28, 2010 

GARY -- Doug Grimes, Republican candidate for county prosecutor, wants Mayor Rudy Clay to suspend his city's community development director with pay, but Clay is standing behind Jacquelyn Drago-Hunter. 

"Right now, she's keeping her job," Clay said. 

Drago-Hunter declined to comment when reached by the Post-Tribune Wednesday. A federal grand jury charged her with wire fraud and aggravated identity theft in an indictment unsealed last week. 

Jerry Haymon, Phillip Rucker and Sheila Chandler also face fraud charges. 

Earlier this week, Clay called Drago-Hunter "a great God-fearing person from a great God-fearing family." He wouldn't say until Wednesday, though, whether she would keep her position. 

She manages millions in federal dollars as community development director, including federal stimulus money from the U.S. Department of Housing and Urban Development. 

That, Grimes said, is why Drago-Hunter should keep her income but be placed on administrative leave. 

"Clay has a responsibility to protect the welfare and assets of the city of Gary," Grimes said in a news release, "and granting her a leave of absence with pay would provide for that protection." 

Grimes is a regular critic of Clay's administration. He was one of the leaders behind a lawsuit that last year voided an initial private contract for trash collection. He is on the Nov. 2 ballot opposite Democratic incumbent Bernard Carter. 

Drago-Hunter isn't accused of mishandling the money that came through her office. Instead the grand jury said she falsified HUD-1 settlement statements, and possibly signatures, during private transactions to illegally direct money into bank accounts controlled by her and her co-defendants. 

Grimes also said he will encourage the Indiana General Assembly to pass a law that would have 

forced Clay's hand in the matter. He said the law should force public officials charged with a felony to take a paid leave of absence if their alleged crimes involve public funds.One house where Haymon is accused of committing the scheme is 4028 Tennessee St. 

Haymon has previously said he used tax money directed to him by City Councilman Ronier Scott to fix up that house. 

Tuesday, October 26, 2010

10262010 - News Article - $300,000 Real estate fraud scheme



3617 johnson st.
3617 johnson st. 
3758 buchanan st. 
4028 tennessee st. 
3829 CONNECTICUT ST. 
CLAY STANDS BEHIND INDICTED OFFICIAL 
These are the homes that feds say Gary's Jacquelyn Drago - Hunter used to illegally divert money from mortgages to herself and her three co-conspirators 

10262010 - News Article - Mayor stands behind indicted city official - Community development chief accused in $300,000 scam



Mayor stands behind indicted city official
Community development chief accused in $300,000 scam 
Post-Tribune (IN)
October 26, 2010

GARY -- Mayor Rudy Clay praised his director of community development Monday, commenting publicly for the first time since a federal grand jury said she participated in a $301,247 mortgage fraud scheme. 

Jacquelyn Drago - Hunter is charged with two counts of wire fraud and aggravated identity theft. Jerry Haymon, Gary reserve police officer Phillip Rucker and mortgage broker Sheila Chandler also face wire fraud counts. 

A grand jury said Drago - Hunter forged paperwork and possibly signatures during private transactions to illegally divert money into bank accounts controlled by her and the co-defendants. 

Meanwhile, at least $5.4 million in federal stimulus grants were awarded to Gary's community development office under her leadership, according to a government website. Drago - Hunter is not accused of mishandling that tax money, but federal officials have stressed a need for public confidence in stimulus spending. 

The mayor wouldn't answer Monday when asked if Drago - Hunter would keep her job. 

"Jackie ( Drago - Hunter ) is a great God-fearing person from a great God-fearing family, and she's done a good job as community development block grant director," Clay said. "Right now that's practically all I can say." 

Drago - Hunter couldn't be reached for comment. Court records show she and Rucker surrendered Monday. Both asked for a court-appointed attorney. Drago - Hunter has filed for bankruptcy. Haymon surrendered Friday and pleaded not guilty. 

Rucker is accused of taking a kickback after recruiting a buyer for one house where a fraudulent transaction took place. Chandler is accused of misrepresenting herself to a title company, lender and others. 

Haymon is accused of filing false mechanics liens and distributing kickbacks to his co-defendants and other unidentified associates. One fraudulent transaction identified in the indictment allegedly took place at 4028 Tennessee St. Haymon has said he used tax money directed to him by City Council President Ronier Scott to renovate that house. Scott has denied being a target of the investigation. 

The other addresses involved are 3829 Connecticut St., 3617 Johnson St. and 3758 Buchanan St. 

Monday, October 25, 2010

10252010 - News Article - Two years ago, Post-Tribune investigation uncovered spending by members of the Gary City Council without public oversight



Two years ago, Post-Tribune investigation uncovered spending  by members of the Gary City Council without public oversight
Two years ago, a nine-month Post-Tribune investigation uncovered a pattern of broad spending with little public oversight by members of the Gary City Council. The irresponsible spending continued, even as council members knew the city would be laying off workers and careening down a path toward possible bankruptcy. 

In particular, a handful of people benefited from the benevolence of Glen Park Councilman Ronier Scott . 

Now, even as he insists he's not the target of a federal probe, scrutiny remains on Scott who doled out $178,500 in Gary tax money from 2004 to 2007 to a Glen Park not-for-profit group called Coalition for Concern, headed by political insider Jerry Haymon. 

On Friday, a federal grand jury indicted Haymon, Gary Community Development Director Jacquelyn Drago-Hunter, Gary reserve police officer Phillip Rucker and mortgage broker Sheila Chandler. 

The group stands accused of wire fraud in a complicated maneuver to steal $301,247 by finding people to buy properties far in excess of what they were worth. The same scheme included phony liens and loan applications. Drago-Hunter, Mayor Rudy Clay's handpicked choice to head an important city department that handles millions in federal money, is also charged with two counts of aggravated identify theft. 

Scott awarded Haymon a $75,000 grant in 2007. However, its purpose was unclear. Haymon said the money was used to fix up a house at 4028 Tennessee St. Tax records from 2008 list Priced Right Construction, a firm owned by Haymon, as the owner. A year ago, federal agents arrived at 

Gary City Hall seeking copies of the same $75,000 grant pact. Now it appears federal authorities are focusing on Haymon and his cozy relationship to Scott . More indictments could be coming and more details will likely emerge about this complex scheme of kickbacks, fraud and lies. 

Saturday, October 23, 2010

10232010 - News Article - State auditors warn city not to continue operating in red



State auditors warn city not to continue operating in red
Post-Tribune (IN) 
October 23, 2010 
LAKE STATION -- The State Board of Accounts is warning Lake Station that it could face bankruptcy if it continues to operate at a deficit. 

State auditors estimated that the city's general fund budget could be $1.5 million in the red by the end of this year. 

"The amount of cash and investment deficit balances and the fact that tax levies have been set to statutory limits raises substantial doubt about the city's ability to continue as going concern," the audit stated. 

The city has spent nearly $6.5 million in excess of revenues since 2009 due to a failure to respond to the Department of Local Government Finance in a timely manner. As a result, the general, ambulance nonreverting and sanitary district bond funds did not have an appropriation. 

In the city's official response, Mayor Keith Soderquist and Clerk-Treasurer Brenda Sam-uels told auditors that the problems are inherited from the previous administration. The city has retained a financial consultant -- HJ Umbaugh and Associates -- to correct the problems and find viable options to eliminate the general fund deficit as quickly as possible. 

The letter states that city officials do not know why the city did not respond to the DLGF about its 1782 Notice. 

The audit listed several other problems, including the failure to use purchase orders, not listing a leased vehicle for the mayor as a taxable fringe benefit and paying $635.94 in interest charges and late fees on city-issued credit cards. 

Also, the city did not prepare a Schedule of Federal Grant Receipts and Disbursements for 2009. 

On Sept. 30, the city sanitary board raised taxes to pay off a bond on a court-ordered debt to the Gary Sanitary District. Each household will owe an extra $150 in property taxes. Officials said that then-mayor Shirley Wadding never informed the council that they had to raise sewer rates to meet the increased rates from GSD, which provides sewer services to the city. 

10232010 - News Article - Grand jury indicts four in complicated fraud scheme



Grand jury indicts four in complicated fraud scheme 
Post-Tribune (IN)
October 23, 2010 

Jerry Haymon once said he used cash from the Gary City Council to renovate a house at 4028 Tennessee St. and make "a beautiful home for a family that would have never been a homeowner." 

But a federal grand jury said Friday the house was one of four used by Haymon, Gary Community Development Director Jacquelyn Drago-Hunter, Gary reserve police officer Phillip Rucker and mortgage broker Sheila Chandler to commit a complicated fraud scheme. 

Together they illegally pocketed $301,247, according to a grand jury indictment unsealed Friday. They are all charged with wire fraud, and Drago-Hunter faces two charges of aggravated identity theft. 

Haymon surrendered Friday, according to his attorney, and court records show he pleaded not guilty. A Gary police spokesman said Rucker is on leave from his volunteer duties until the case is settled. 

The Post-Tribune first reported on Haymon's activities in a 2008 investigation. 

Fake documents, promises 
The grand jury said the defendants faked documents, made false promises and forged signatures as they executed their scheme between Oct. 1, 2007, and Nov. 5, 2008. 

It said Haymon and others convinced people they could help sell their properties. Then they found people to buy them far in excess of their market value. 

Haymon and others gave money to the buyers to create the false impression that the buyers were financially secure. That helped them obtain loans. 

Chandler prepared false loan applications for the buyers that were submitted to lenders, the grand jury said, and Haymon filed fake mechanics liens to obtain portions of the loans. 

Drago-Hunter, who is named as an owner of Maximilian Title, is accused of then preparing false HUD-1 settlement statements and disbursing the loan money. Haymon, Drago-Hunter, Chandler and Rucker shared the illegal cash, according to the indictment. 

Versions of this scheme took place at 3829 Connecticut St., 3617 Johnson St., 3758 Buchanan St. and 4028 Tennessee St., the grand jury said. All four are found in Gary's Glen Park area. 

Two closings alleged 
Haymon used his Priced Right Construction and Management LLC and K&L Consultants LLC businesses to commit part of the crime, the grand jury said. He is also identified as the leader of the not-for-profit Coalition of Concern. 

Haymon agreed Priced Right would buy 3829 Connecticut for $36,000 from "DB and JW," then an associate offered "SH" $10,000 to pretend to buy the property for $74,000. Priced Right filed a mechanics lien for $35,000 on the property even though Priced Right had done no work there. 

Drago-Hunter closed the sale twice on Feb. 29, 2008, the grand jury said. First she prepared a false HUD-1 settlement statement that said "DB and JW" sold to "SH." The grand jury said the signatures of "DB and JW" were forged. 

That paperwork said the sellers got $36,237, which the grand jury said was false. Drago-Hunter then sent $35,000 to Priced Right but didn't note it on the HUD-1. 

During the next closing, the grand jury said, Drago-Hunter prepared a second HUD-1 that said Priced Right purchased 3829 Connecticut for $36,000. She then disbursed additional money to Maximilian but didn't state it on the paperwork. 

Finally, Haymon paid a $13,000 kickback to the unnamed associate who first recruited "SH." The grand jury said there were also kickbacks to a mortgage broker for "SH" and others. 

Similar schemes took place at the other addresses, the grand jury said, with Chandler helping with two sales and Rucker helping with one. 

Rucker participated by recruiting one buyer to purchase 3758 Buchanan in July 2008, the grand jury said, and accepting a $5,000 kickback along with Chandler and unnamed others. 

Chandler is accused of telling a title company, lender and others she was a loan processor for a mortgage company for the sales at 3758 Buchanan and 4028 Tennessee. The grand jury also said she prepared false documents and accepted a $3,000 kickback along with unnamed others. 

Chandler faces nine charges in a separate but similar indictment filed in May. She and four others are accused of taking more than $600,000 in that case, which is set to go to trial Jan. 18. 

City Council money used 
The Post-Tribune asked Haymon about his activities with the Coalition of Concern, Priced Right Construction and K&L Consultants in 2008. 

The Coalition received $75,000 from the Gary City Council under a 2007 grant agreement with Councilman Ronier Scott , who represents Glen Park. It was unclear from the terms of the deal what services Haymon was expected to provide. 

But Haymon later said that money was used to fix up 4028 Tennessee. In 2008, property records said it was owned by Priced Right Construction. 

"Gary was getting ready to put it on the demolition list," Haymon said that year. 

Federal agents sent a subpoena to Gary City Hall in November 2009 seeking copies of the grant agreement, a city attorney said at the time. 

Scott also directed at least $103,500 to the Coalition of Concern between 2004 and 2006, records show. Haymon originally denied receiving it but later acknowledged the money. 

He also provided a letter that said K&L was under the scrutiny of the Indiana Attorney General's consumer protection division until May 2008, when the office took no action against it. 

Scott said he was surprised to hear about Friday's indictment, even though he's been contacted by federal agents about the case in the past. 

The document references "others known and unknown to the grand jury" while outlining the scheme, but Scott said agents gave him no reason to think he's targeted."They're just coming to me for information," Scott said. 

Clay mum on Drago-Hunter 
Gary Mayor Rudy Clay failed to return several calls seeking comment about Drago-Hunter, who manages millions in federal dollars while running his city's community development office. 

Darnail Lyles, Chandler's attorney, said he had yet to see the indictment. Haymon's attorney, John R. Cantrell, said he had not yet given it a close read and declined to comment. 

An attorney listed in court records for Drago-Hunter said he no longer represents her. No attorney was listed for Rucker. 

Lt. Samuel Roberts, a spokesman for the Gary Police Department, said Rucker finished his most recent volunteer shift for the GPD at 8 a.m. Friday. 

He said Rucker told Police Chief Gary Carter about the indictment, and Carter put Rucker on leave. 

Roberts said, "one is innocent until proven otherwise."  

Jacquelyn Drago-Hunter 
Gary Community Development director and Maximilian Title owner 

Jerry Haymon 
Priced Right Construction and Management LLC and K&L Consultants LLC 

Phillip Rucker 
Gary reserve police officer 

Sheila Chandler
Mortgage broker

Thursday, October 7, 2010

10072010 - Indiana Animal Cruelty Laws - IC 35-46-3-12 - Torture; Killing of a domestic animal









































10072010 - Indiana Animal Cruelty Laws - IC 35-46-3-6 - Officials' rights to impound animals if they believe a person may have violated cruelty laws









































10072010 - Indiana Animal Cruelty Laws - IC 35-46-3-0.5 - Definitions










































10072010 - Indiana Animal Cruelty Laws - IC 35-46-3-15 - Offenses Relating To Animals



















































10072010 - Judiciary Commission investigation of Porter County Magistrate James Johnson - The disappearing investigation




WTF ever happened to the Indiana Judiciary Commission's investigation of Porter County Superior Court Magistrate James Johnson? How did the investigation simply 'disappear'? Who was involved in protecting Johnson from accountability for his actions against those who were unfortunate to have their divorce cases before him? AND, who covered up Magistrate Johnson's corruption?

Yes, I know it has been seven years since the investigation - BUT, having endured an unlawful police entry into my home by the Portage PD, and having my beloved furbabies Abbi and Bailey killed in retaliation for me having reported Johnson - I have a right to ask: "WTF happened??!!" AND, I am entitled to answers.


A magistrate was caught red-handed by the State, improperly handling approximately 100 divorce cases - and, not one official in Porter County was concerned about the victims - instead, the officials were concerned about protecting the corrupt magistrate. 

What's equally puzzling is that the investigation of Johnson just simply vanished, after the magistrate had been given a two week extension to comply with the Indiana Judiciary Commission - on the exact date of the unlawful police entry into my home.


One of the officials who played a role in covering up the unlawful police entry into my home, and then put a halt into an investigation, was  none other than federally indicted Portage Mayor James Snyder.

At the very least, I am OWED answers for the unlawful police entry into my home and the deaths of my furbabies, Abbi Mae and Bailey Su. And, I am OWED the funds the Portage police officers were talking about on their radios, the day of the unlawful police entry - marital funds / assets my ex had hidden from me, that police claimed were, "More money than I have ever seen... Can't believe he has that much money..."



FBI Public Corruption 

FBI Online Tips

FBI Regional Corruption Hotlines










News Articles - Judiciary Commission investigation of Porter County Magistrate James Johnson

07072010 - News Article - Hand of justice deemed too slow - Magistrate James Johnson judicial investigation


07072010 - News Article - Magistrate investigated on allegations of slow work flow - Magistrate James Johnson judicial investigation


07112010 - News Article - County judges failing to keep up - Magistrate James Johnson judicial investigation


07112010 - News Article - Magistrates failing to keep up with case loads - Magistrate James Johnson judicial investigation


07202010 - News Article - Porter County judges to discuss magistrate's performance - Magistrate James Johnson judicial investigation


07202010 - News Article - By a jury of his peers - Magistrate James Johnson judicial investigation


07212010 - News Article - Help to be brought in for magistrate - Magistrate James Johnson judicial investigation

07212010 - News Article - Here comes the judge's backup help - Magistrate James Johnson judicial investigation


07212010 - News Article - Porter judges take stand - Magistrate James Johnson judicial investigation


07222010 - News Article - Indiana magistrate to get help clearing case backlog - Magistrate James Johnson judicial investigation


07232010 - News Article - EDITORIAL: Speedy trials, speedy rulings - Magistrate James Johnson judicial investigation


07232010 - News Article - POLL - Should Porter County hire a temporary, part-time probate commissioner to assist Magistrate James Johnson - Magistrate James Johnson judicial investigation


07232010 - News Article - MARK KIESLING: Magistrate's progress bears watching - Magistrate James Johnson judicial investigation


07242010 - News Article - Attorney hired to help ease court's backlog in Porter County - Magistrate James Johnson judicial investigation


07242010 - News Article - Attorney is hired to help ease backlog. Hearing sheds light on the pain of trial delays - Magistrate James Johnson judicial investigation


07242010 - News Article - Probate commissioner named to help magistrate with cases - Magistrate James Johnson judicial investigation


10072010 - News Article - Magistrate still working on backlog - Magistrate James Johnson judicial investigation


10072010 - News Article - Magistrate continues working on backlog - Two week extension granted for clearing family law paperwork - Magistrate James Johnson judicial investigation


10072010 - Magistrate Johnson judicial investigation - Confidential Caution?


05242011 - News Article - Porter County magistrate stepping down - Magistrate James Johnson judicial investigation


05242011 - News Article - Porter County magistrate resigns amid case backlog - Magistrate James Johnson judicial investigation


05252011 - News Article - Magistrate James Johnson tenders his resignation - Magistrate James Johnson judicial investigation


06152011 - News Article - Applications being accepted for magistrate - Magistrate James Johnson judicial investigation










Porter County Magistrate James Johnson - Complaints filed


























































"She filed for divorce on March 23, 2011, and on April 5, Magistrate James Johnson’s court filed a provisional order that divided some assets before the divorce went to court"
[Trial date set in Portage killing. Post Tribune. 05022011]



"According to the Porter County Clerk’s Office, Cheryl Miller applied for a protective order from her husband. A Porter County judge granted her the order in April and declared the husband be removed from the residence. The couple filed for divorce April 13."
[2 dead in Kouts firebombing, suicide. Post Tribune. 05312011] 

10072010 - Indiana Animal Cruelty Laws - IC 35-46-3-15 - Person who intentionally orders the destruction of an animal









































10072010 - Indiana Animal Cruelty Laws - IC 35-46-3-12.5 - Domestic Violence Animal Cruelty