Todd C. Leary, a former Indiana University basketball player who played on a team that advanced to the NCAA Final Four in 1992, was arrested and booked into a Fort Wayne, Indiana jail Thursday Night on charges that he was involved in a scheme to misappropriate over a million dollars of funds that were supposed to be held in escrow.

According to a report in the Fort Wayne Journal Gazette, Leary had been hired by Joseph A.Garretson to work for a company called Mortgage Links in 2004.  While working for Garretson, Leary became aware of illegal misappropriation of funds by Garretson.  Leary then left to work at another business, Legends Title.  While working at Legends Title, Leary allegedly misappropriated $289,000 of funds.  To obtain funds to cover for his misdeeds at Legends, Leary contacted his former employer, Garretson.  Leary pressured Garretson for money on numerous occasions, using his knowledge of Garretson's own illegal activities as leverage.

Between March 2008 and February 2009, more than $1 million in funds were allegedly transferred from Fort Wayne Title, a company owned and operated by Garretson, into Leary's personal bank account.  Leary withdrew nearly $700,000 of those funds. 

Garretson pled guilty earlier this week to conversion or misappropriation of title insurance escrow funds, corrupt business influence and unlawful loan origination activities, all felonies, as part of a plea agreement to charges that Garretson, among other crimes, allegedly misappropriated more than $2.7 million in escrow funds . 

Leary's friend and former teammate at Indiana, Brian Evans, cooperated with investigators to obtain evidence against Leary.  Leary made a phone call to Evans in December in which Leary allegedly admitted pressuring Garretson for funds when he was "in big trouble", and that Garretson had helped him out.  When Garretson was arrested, Leary also admitted to Evans that he was "a big part of Garretson's situation." 

According to court documents, Garretson has confirmed to investigators that Leary pressured him for funds on numerous occasions by threatening to expose Garretson's illegal activities.

For more background, see Title Agent Pleads Guilty after Pocketing County Prosecutor's Escrow Funds.