12082011 - News Article - Former reserve officer guilty in Gary mortgage scheme

Former reserve officer guilty in Gary mortgage scheme

Post-Tribune (IN)
December 8, 2011

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A federal jury found a former Gary reserve police officer guilty on Wednesday of taking part in a mortgage fraud scheme that took in almost $200,000. 

The jury at the U.S. District Court in Hammond ruled that Phillip Rucker was guilty on one count of wire fraud, according to court records. 

Rucker’s trial lasted two days, with attorneys in the case presenting closing arguments Wednesday. 

Rucker was charged along with three other defendants — including Gary businessman Jerry Haymon and former Gary Community Development Director Jacquelyn Drago - Hunter — of filing fake construction liens against homes being sold and then lying about the sale price on closing documents so that they could pocket tens of thousands of dollars. 

Haymon and co-defendant Sheila Chandler have both pleaded guilty in the case. Drago - Hunter has said in recent court filings that she is working on reaching a plea agreement with prosecutors, but she is still under a plea of not guilty. 

Assistant U.S. Attorney Gary Bell said during opening arguments that Rucker recruited his girlfriend to buy one of the four houses in the scheme for about $40,000 more than it was worth. Haymon took that amount by placing the construction lien against the house for work he supposedly did to, Bell said, such as installing a new roof, wiring, floors, cabinets and dry wall. However, pictures of the house showed an interior that was dirty and dated with no evidence of any renovation work. 

Haymon then took that money, Bell said, cashed it in Chicago and got eight money orders worth $5,000 each. He then gave two money orders each to Rucker and his girlfriend, Bell said. 

Rucker’s attorney John Maksimovich argued that he got caught up by corrupt people and that he was just trying to help his girlfriend find a rental property to earn some more money. Rucker had no idea about the fraud scheme, Maksimovich said. 

The jury dismissed that argument, however, and sided with the government. Rucker will remain free on bond until his sentencing, which has not been set yet, according to court records.