11242011 - News Article - Former city official close to plea in mortgage fraud

Former city official close to plea in mortgage fraud

Post-Tribune (IN)
November 24, 2011

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The former director of Gary Community Development appears ready to plead guilty to federal charges that she took part in a mortgage fraud scheme that reaped almost $200,000. 

According to a motion filed Tuesday in the U.S. District Court in Hammond, Jacquelyn Drago - Hunter said she is close to reaching a plea agreement with federal prosecutors. The government filed a response Wednesday, also saying they believed a plea deal was likely. 

However, prosecutors said in the same filing that they still want the trial for Drago - Hunter ’s co-defendant, Philip Rucker, to start as scheduled on Dec. 5. 

Rucker and Drago - Hunter both face charges of wire fraud, and Drago - Hunter faces additional charges of aggravated identity theft. According to a federal indictment, the two worked with co-defendants Jerry Haymon and Sheila Chandler to sell homes for far more than they were worth and to pocket the extra value by filing fake liens against the property. 

Drago - Hunter , who was suspended earlier this year, months after charges were filed, from her position with Gary Community Development, took part in the scheme by using her position with a title company to forge signatures on closing documents to hide the scheme from the banks and the people selling the houses. 

Rucker, a former Gary reserve police officer, is accused of recruiting buyers for the scheme, according to documents filed in the court. 

Haymon, who owns Priced Right Construction and K&L Reality, pleaded guilty in the case earlier this week, and Chandler pleaded guilty earlier this year. 

Drago - Hunter asked in her filing to delay her trial, which is scheduled to take place along with Rucker’s, because of the plea deal. Because of this, the government has asked to separate her from Rucker, saying it did not want to delay his trial. 

“The government has twice prepared for trial and believes it will potentially be prejudiced if the case is postponed again,” the filing says. 

Prosecutors argue in the filing that the criminal acts charged took place three to four years ago and that another delay won’t help witnesses in trying to remember details.