IBJNews

Charter Homes owner gets 2-plus years for mortgage fraud

Back to TopCommentsE-mailPrintBookmark and Share

Charter Homes owner Jerry J. Jaquess has been sentenced to two-and-a-half years in prison and ordered to pay restitution of $825,000 for his role in a $20 million mortgage fraud scheme.

Jaquess, 67, pleaded guilty to one count each of wire fraud and money laundering. Chief Judge David F. Hamilton issued the sentence Tuesday in Indianapolis.

After 30 months in prison, he will serve another three years on supervised release. The restitution will go to Homecomings Financial and Argent Mortgage Co., two of the victims.

The U.S. Attorney’s Office for the Southern District of Indiana in April charged Jaquess and six others with crimes connected with 149 fraudulent loan transactions totaling $19.7 million between 2003 and 2005.

The charges followed an investigation by special agents of the IRS Criminal Investigation Division, the U.S. Attorney’s Office and the FBI.

Scheme participants bought homes in Windsor Village near Arlington Avenue and 21st Street in Indianapolis for $50,000 each, the U.S. Attorney’s Office said. Then, with the help of inflated appraisals, they recruited investors to take out $96,000 loans to purchase the homes for $120,000 each.

No payments were made on the mortgages and the lenders lost the entire loan amounts, the U.S. Attorney’s Office said. Many of the duplexes were later resold for between $3,500 and $15,000.

Jaquess and Charter Homes were the subject of an IBJ investigative story last year.

The U.S. Attorney’s Office said Jaquess used another of his companies, Homevestors LLC, to negotiate the purchase and sale of the first 11 properties in Windsor Village. He listed three of the properties as having sold for $120,000 each on the Multiple Listing Service, allowing the sales to be considered as comparable on appraisals of the remaining properties.

After each closing, Homevestors issued a check of about $42,000 to Jaquess personally or to a family member, a check to the person “fronting” the down payments and a $4,000 check to the investor.

Jaquess has not been charged with crimes relating to Charter-developed neighborhoods including downtown’s King Park, Fishers Creek on the east side and The Reserve at Royal Oaks in Greenwood. But current and former Charter business partners who spoke to IBJ for stories in August and October 2008 described a similar scheme in which the company recruited and paid buyers to take out inflated mortgages on homes it built, promising to manage the properties as rentals and make payments for the owners.

 

ADVERTISEMENT

  • I'd love to see a photo of this crook so I can STAY AWAY from him once he's out of the pokie.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I took Bruce's comments to highlight a glaring issue when it comes to a state's image, and therefore its overall branding. An example is Michigan vs. Indiana. Michigan has done an excellent job of following through on its branding strategy around "Pure Michigan", even down to the detail of the rest stops. Since a state's branding is often targeted to visitors, it makes sense that rest stops, being that point of first impression, should be significant. It is clear that Indiana doesn't care as much about the impression it gives visitors even though our branding as the Crossroads of America does place importance on travel. Bruce's point is quite logical and accurate.

  2. I appreciated the article. I guess I have become so accustomed to making my "pit stops" at places where I can ALSO get gasoline and something hot to eat, that I hardly even notice public rest stops anymore. That said, I do concur with the rationale that our rest stops (if we are to have them at all) can and should be both fiscally-responsible AND designed to make a positive impression about our state.

  3. I don't know about the rest of you but I only stop at these places for one reason, and it's not to picnic. I move trucks for dealers and have been to rest areas in most all 48 lower states. Some of ours need upgrading no doubt. Many states rest areas are much worse than ours. In the rest area on I-70 just past Richmond truckers have to hike about a quarter of a mile. When I stop I;m generally in a bit of a hurry. Convenience,not beauty, is a primary concern.

  4. Community Hospital is the only system to not have layoffs? That is not true. Because I was one of the people who was laid off from East. And all of the LPN's have been laid off. Just because their layoffs were not announced or done all together does not mean people did not lose their jobs. They cherry-picked people from departments one by one. But you add them all up and it's several hundred. And East has had a dramatic drop I in patient beds from 800 to around 125. I know because I worked there for 30 years.

  5. I have obtained my 6 gallon badge for my donation of A Positive blood. I'm sorry to hear that my donation was nothing but a profit center for the Indiana Blood Center.

ADVERTISEMENT