03.27.08
Why So Long to Stop a Bad Apple Title Agent?
Here we go again. Another bad title Agent. So what’s new? But why does it take so long for title underwriters to jump on a problem?
In this particular case, a complaint has finally been filed by Old Republic Title against Independent Title Agency LLC in Lakeland, FL. Erica Daniels, 29, the owner was arrested March 14th by the Florida Department of Financial Services’ Fraud Division. Daniels, who is a baseball league mother and former Lakeland real estate agent has been charged with stealing more than $660,000 in client escrow funds that investigators say she used for personal gain.
Indications of money laundering and fraud were initially discovered during a routine audit of the company’s financial records in January 2006, according to an affidavit filed. While Old Republic continually pressed Daniels to update her escrow account reconciliations and submit them to the company, she refused and avoided contact with company officials.
“As a result of the follow-up audits, “severe escrow problems related to theft were discovered,” says the report. Again, numerous attempts to contact Daniels were made but she continued to avoid contact with Old Republic. Old Republic has now sued Daniels, her husband, Michael Daniels and Independent Title Agency, LLC alleging breach of contract, fraud, conversion of funds and theft. The company is seeking $700,000.
On March 14, 2008 she was finally charged with two counts of fraud and conversion of escrow monies; scheming to defraud; money laundering; and grand theft. She posted $110,000 bail and was released from the Polk County Jail the same day of her arrest.
Among the allegations in the lawsuit are that the couple used escrow funds to purchase three real estate properties, add an in-ground swimming pool to their home, purchase a BMW, a Hummer, a Ford pickup, a personal water craft and a travel trailer.
Can anyone figure out why it takes more than two years after finding serious financial problems to pull the plug on a bad agent?
Greg Knowles said,
March 27, 2008 at 1:43 pm
I certainly can’t, and I would think things like this should start causing underwriters to really examine why it does take so long.