Leary to face up to 3 years behind bars

Former Indiana guard Todd Leary averaged 5.4 points, 1.9 assists and 1.3 rebounds per contest and booked a career average of .460 shooting from beyond the arc while he donned the cream and crimson from 1989 to 1994.

He can now add two more stats to his list of accomplishments: at least 18 months of jail and his 18th felony charge.

Leary pled guilty to felony charges of fraud last Thursday, charges that could send him to prison for up to three years.

However, as part of his plea deal, Leary has the opportunity to reduce his jail time by half if he can pay nearly $295,000 in restitution before his sentence hearing in October.

The charges are in connection with Joseph Garretson, Leary’s ex-business partner, who was involved in a $2.7 million mortgage fraud scheme.

This most recent felony charge is based on Leary’s confession of fraudulently redirecting funds into his personal bank account from March 2008 to March 2009.

The scheme involved Leary and Garretson funneling money from refinanced client loans into separate private accounts instead of going toward paying the actual loan.

Leary also received payments from Garretson totaling nearly $1 million, according to court documents.

Leary withdrew almost $700,000 from the account.

Leary and Garretson’s scheme ended when 13 Allen County homeowners reported that their mortgages had not been paid off, despite having sent their payments through Garretson’s Fort Wayne Title Company for refinancing.

The reports were made from October 2007 to October 2009, and the county’s Prosecutor’s Office started investigating the issue.

While Leary was redirecting money from refinanced mortgages into his own personal
accounts, he was also a color analyst for IU Radio Network.

He was in his eighth season covering the Hoosiers when he was arrested prior to a game against Purdue on Feb. 4.

He was later charged with 17 felonies.

From the deal reached Thursday, Leary must assist investigators as they go after others involved in the case.

He will also not be allowed to work in insurance, loans, mortgages or real estate while he serves his jail term.

Leary’s term is much shorter than his accomplice’s, as Garretson was sentenced to 11.5 years in prison last month.

However, even though he will spend less time behind bars, Leary said he still understands what he did was criminal and immoral.

He responded to Allen Superior Court Judge Fran Gull’s question — “Did you know what you were doing was wrong, Mr. Leary?” — with a simple answer.

“I did,” Leary said.