12162011 - News Article - No jail for woman who tipped feds on mortgage fraud

No jail for woman who tipped feds on mortgage fraud

Post-Tribune (IN)
December 16, 2011

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A Schererville woman won’t have to spend any time in jail after a federal prosecutor said she had helped the government indict local businessman Jerry Haymon and three other defendants in a mortgage fraud scheme. 

Assistant U.S. Attorney Gary Bell said information from Sarah Harris helped get Haymon to agree to plead guilty to four counts of wire fraud and one count of tax evasion. 

“Jerry Haymon’s attorney literally called us up and said he’s pleading guilty” in response to information provided by Harris, Bell said. 

Harris pleaded guilty earlier this year to one count each of lying on a loan application and identity theft. Harris, who worked as a loan officer at Amerifund Lending Group in Lake County, worked with Haymon in 2008 to take part in a mortgage fraud scheme. Haymon had recruited someone to buy a property for tens of thousands of dollars more than it was worth, and Harris helped him to create false loan documents to fool the lender. Haymon pleaded guilty in a larger case to pocketing the extra cash by filing liens against the properties for work he never performed. He would then pay kickbacks to other conspirators. Haymon has admitted to taking almost $200,000 in his larger case. 

Three other people — former Gary reserve police officer Phillip Rucker, former Gary Community Development Director Jacquelyn Drago - Hunter and Sheila Chandler — were also charged in the case thanks to Harris’ help, Bell said. Rucker was recently convicted by a federal jury, Chandler has also pleaded guilty and Drago - Hunter has said in filings she is working on reaching an agreement with prosecutors to plead guilty, although she is still under a plea of not guilty. 

The original federal sentencing guidelines called for Harris to face eight to 14 months in prison, but the government filed a sealed motion to trim her sentence because of how much she helped the government’s case. 

U.S. District Judge Joseph Van Bokkelen said that although the mortgage fraud, which in Harris’ case resulted in the loss of $60,000 to two companies, is a serious crime, he also wanted to reward her for her help. 

“Ms. Harris, you made a good decision,” he said. 

Harris, a single mother of twin toddlers who is working as a kindergarten assistant, said she accepted full responsibility for her crime. 

“I just want to say that I’m sorry for what I did,” she said. 

Van Bokkelen sentenced her to one day in jail but gave her credit for time served, meaning she won’t serve any time. He did place her on supervised release for two years and ordered her to pay a fine of $66,000.