As the real estate markets falter, the scams that came out of the boom are coming to light and are catching some people that you would not expect. The newest one, former Indiana University basketball player and current announcer Todd Leary was arrested.

The charges were that he took title insurance escrow funds totaling 1.3 million dollars. Leary is the more famous person rounded up in this scam. His boss, Joseph Garretson, plead guilty earlier in the week for stealing 2.7 million.

Leary has been relieved of his duties as color commentator for Indiana University basketball.

The charges against Leary include conspiracy to misappropriate real estate title insurance escrow funds, by improperly transferring about $1.3 million to a bank account he controlled. Court documents also say Leary once worked for a title insurance broker who pleaded guilty in a $2.7 million scheme.

Leary played for Indiana University in 1989-94, including its 1992 NCAA Final Four team. He is an analyst for IU’s radio broadcasts. via LATimes

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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. via the Journal Gazette

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