10252010 - News Article - Two years ago, Post-Tribune investigation uncovered spending by members of the Gary City Council without public oversight

Two years ago, Post-Tribune investigation uncovered spending  by members of the Gary City Council without public oversight

Post-Tribune (IN)
October 25, 2010
http://infoweb.newsbank.com.proxy.portagelibrary.info/iw-search/we/InfoWeb?p_product=AWNB&p_theme=aggregated5&p_action=doc&p_docid=133181929683BF88&p_docnum=27&p_queryname=4

Two years ago, a nine-month Post-Tribune investigation uncovered a pattern of broad spending with little public oversight by members of the Gary City Council. The irresponsible spending continued, even as council members knew the city would be laying off workers and careening down a path toward possible bankruptcy. 

In particular, a handful of people benefited from the benevolence of Glen Park Councilman Ronier Scott . 

Now, even as he insists he's not the target of a federal probe, scrutiny remains on Scott who doled out $178,500 in Gary tax money from 2004 to 2007 to a Glen Park not-for-profit group called Coalition for Concern, headed by political insider Jerry Haymon. 

On Friday, a federal grand jury indicted Haymon, Gary Community Development Director Jacquelyn Drago-Hunter, Gary reserve police officer Phillip Rucker and mortgage broker Sheila Chandler. 

The group stands accused of wire fraud in a complicated maneuver to steal $301,247 by finding people to buy properties far in excess of what they were worth. The same scheme included phony liens and loan applications. Drago-Hunter, Mayor Rudy Clay's handpicked choice to head an important city department that handles millions in federal money, is also charged with two counts of aggravated identify theft. 

Scott awarded Haymon a $75,000 grant in 2007. However, its purpose was unclear. Haymon said the money was used to fix up a house at 4028 Tennessee St. Tax records from 2008 list Priced Right Construction, a firm owned by Haymon, as the owner. A year ago, federal agents arrived at 

Gary City Hall seeking copies of the same $75,000 grant pact. Now it appears federal authorities are focusing on Haymon and his cozy relationship to Scott . More indictments could be coming and more details will likely emerge about this complex scheme of kickbacks, fraud and lies.