Leary faces 17 felony charges in real estate scheme

  • 02/05/2010 1:18 am in

This has been a season devoid of predictability for Indiana on the court, but nothing could compare to this.

Former Hoosier Todd Leary, a color commentator on IU’s radio broadcast team alongside play-by-play man Don Fischer, was arrested Thursday evening on 17 felony counts “in connection with a scheme to misappropriate real estate title funds,” according to the above-linked report from the Fort Wayne Journal-Gazette.

I’m not great with the legalese, I just got home from a Notre Dame game and it’s my birthday, so I’m just going to quote heavily from this report, which would frankly be a better plan of action no matter the circumstance:

Leary once worked for former title insurance broker Joseph Garretson, who pleaded guilty this week in Allen Superior Court to conversion or misappropriation of title insurance escrow funds, corrupt business influence and unlawful loan origination activities in a scheme that court documents say totaled $2.7 million in losses.

IU police arrested Leary – an analyst for the Indiana University Radio Network – on Thursday evening, and he was booked into the Monroe County Jail in Bloomington about 6:45 p.m., 15 minutes before IU’s home game against Purdue.

Leary, 39, of Carmel, is accused of conspiring with Garretson between July 2008 and February 2009 to commit a variety of felonies, including conspiracy to commit conversion or misappropriation of title insurance escrow funds, conspiracy to commit theft and conspiracy to corrupt business influence. The majority of the charges are Class C felonies, with penalties of up to four years in prison each.

So yea, not good. Not good at all. I take from the report — though this isn’t a claim to fact, I’m just surmising — that Leary was actually arrested at Assembly Hall, since it apparently happened close to game time and IU police were the ones who actually took him in, according to the report.

That same report also states that former Hoosier Brian Evans, who is a co-owner of the Uncle D’s franchise on Kirkwood Avenue in Bloomington, cooperated with investigators in some fashion.

I won’t opine too much on this; it’s radioactive on its own, just read the report for yourself. I would imagine we’ll have more for you as this story develops.

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  • Kelin Blab

    ummm wow…I bet Kelvin Sampson had something to do with this?
    I don't know what to say about this story but wow..

  • JudgeDredd

    C felonies have a sentencing range of 2 to 8 years, with an advisory sentence of 4 years.

  • Bryan

    I thought it was strange when it was mentioned on the pregame radio show that Leary “couldn't be with us tonight.” I thought at the time he was dealing with a death in the family. Obviously it was related to this.

  • Dave

    More from the Journal-Gazette:

    Leary, 39, of Carmel, is accused of conspiring with Garretson between July 2008 and February 2009 to commit a variety of felonies, including conspiracy to commit conversion or misappropriation of title insurance escrow funds, conspiracy to commit theft and conspiracy to corrupt business influence. The majority of the charges are Class C felonies, with penalties of up to four years in prison each.

    Garretson is accused of arranging mortgage refinancing loans for area clients and failing to use the money to pay off the initial loans, causing mortgage holders to default.

    Under the terms of Garretson’s plea agreement, he faces no more than 12 years in prison when he is sentenced in April, according to court documents.

    After Garretson’s arrest last fall, Leary called Evans – a mutual friend – and told Evans he was “a big part of Garretson’s situation,” documents said.

    Garretson met Leary through Evans and hired Leary in 2004 to work for Mortgage Links, a mortgage company Garretson opened in the Indianapolis area, according to court documents.

    Leary left Garretson’s company to work for Ken Dilger, a former Indianapolis Colts player. After he went to work for Dilger, Leary approached Garretson about needing money to cover $289,000 he misappropriated from Legends Title, court documents said.

    In a December phone call to Evans, Leary said Garretson helped him out when he was in “big trouble.” Leary went on to say Garretson did not have much of a choice because Leary had caught Garretson misappropriating funds when Leary worked for him, according to court documents.

    Through his attorney, Garretson told investigators that Leary pressured him on numerous occasions for more money, threatening to disclose Garretson’s financial misdeeds, according court documents.

    According to court documents, between March 11, 2008, and Feb. 12, 2009, more than $1 million in wire transfers went from a Fort Wayne Title bank account into a National City Bank account opened by Leary. Between March 2008 and March 2009, Leary withdrew $690,000 from the account, according to court documents.

  • lbroer

    Leary should have stuck to his degree Sports Management.

  • Not really sure what to say about this story other than…wow. That probably ruined Leary's day.

  • Anonymous

    Great article