12232010 - News Article - Indicted businessman to get $35K from city

Indicted businessman to get $35K from city

Post-Tribune (IN)
December 23, 2010

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GARY -- A local janitorial business owned by a man facing federal fraud charges will receive nearly $35,000 from the city for work it performed early this year, but the terms of the deal were confirmed only Wednesday. 

That compensation for Dynamic Janitorial Services will be added to contracts already worth $175,000 total for work done in 2009, and records show current contracts with the company totaling $147,475 last until February. 

Gary's Board of Public Works and Safety endorsed two amendments to Dynamic's 2009 contracts to clean up the City Hall Annex, at 839 Broadway, and the Adam Benjamin Metro Center. 

State records show the president of Dynamic Janitorial is Jerry Haymon, who is charged with wire fraud in an indictment unsealed in October. Community Development Director Jacquelyn Drago - Hunter , reserve police officer Phillip Rucker and mortgage broker Sheila Chandler are co-defendants in the case. 

Although the contracts expired at the end of 2009, Wednesday's changes extend them retroactively until the end of February 2010 and add a combined maximum payment of $34,686. 

"The contractor performed the services," City Attorney Carl Jones said. 

Dynamic's current contracts to work at those buildings began in March and last until February 2011, officials said. 

Jones said the changes to the old contracts weren't approved until Wednesday because of recent confusion over payments due to Dynamic Janitorial. Jones said compensation for work done in January and February shouldn't fall under the terms of the current contracts. 

No contract existed at the time, Jones said, because of a delay in receiving bids. 

Haymon's not-for-profit Coalition of Concern previously received $75,000 from the Gary City Council, and Haymon has said he used it to renovate a home in the 4000 block of Tennessee Street. 

In this fall's indictment, a federal grand jury said that home and others were sold under fraudulent terms. It said Haymon and his co-defendants pocketed the profits of the bogus sales. 

Haymon and his co-defendants have all pleaded not guilty. A trial has been scheduled for August. 

Fed charges relate to nonprofit Haymon operates.