03252011 - News Article - U.S. District court, Hammond - Scheme netted defendants more than $900,000 - S’ville woman admits role in mortgage fraud

U.S. District court, Hammond - Scheme netted defendants more than $900,000

S’ville woman admits role in mortgage fraud

Post-Tribune (IN)
March 25, 2011

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A Schererville woman will plead guilty in two cases of helping to illegally take more than $900,000 in a mortgage fraud scheme. 

Sheila Chandler will plead guilty to 10 counts of wire fraud and one count of conspiring to commit wire fraud, according to a plea agreement filed Wednesday in the U.S. District Court in Hammond. 

Chandler was charged in the two cases last year, One connected her with seven other defendants of soliciting people to buy homes for more than they were worth. The potential owners were told they could use the extra loan money to renovate the homes then rent them out. The defendants would file a bill on the sale of the house to be paid for that supposed work, but the work was never done, according to court records. The indictment in the case claims the group took in more than $600,000. 

Chandler, who pleaded guilty more than 10 years ago to embezzling $250,000 from a not-for-profit and an insurance company, used her position at a local mortgage company to fill out false information, such as income, to help the buyers get the loans. Seven of the wire fraud counts and the conspiracy count she pleaded guilty to are connected to this case. 

She committed a similar offense in her second case, where she was charged with three other people including Gary city employee Jacquelyn Drago - Hunter and Gary businessman Jerry Haymond. The indictment in that case described a similar scheme except on different properties. 

Chandler faces up to 20 years on each of the counts and agrees to pay restitution in the case, although the amount will be decided by the judge at sentencing. As part of the plea deal, Chandler agrees to testify for the government in both cases. 

Chandler is the only defendant in either of the cases to plea guilty. Chandler was scheduled to go to trial in the larger case in July and to go to trial in the smaller case in August. 

Her change of plea hearing is scheduled for Wednesday morning.