05.30.08
Posted in Mortgage and title Fraud at 9:20 pm by Jeanne
The Hometown Annapolis newspaper reports that the Maryland insurance commissioner suspended the license of a local title company owner on May 29th, claiming the woman absconded with up to $3 million in mortgage settlements. The owner has not been seen since the company’s underwriter, conducted an audit at her Severna Park office on May 19th. Security Title, her underwriter, has agreed to pay back any and all losses.
The audit was done after the underwriter was informed of unpaid liens on property closed by the agent.
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04.20.08
Posted in Industry News, Mortgage and title Fraud at 12:56 pm by Jeanne
Thieves knowledgeable in searching the public record, and recording documents, secretly stole title to 25 vacant parcels by searching the land records, creating matching documents, forging signatures, and recording them. The fraud workers transferred properties worth more than $23 million from the rightful owners into names of “straw” buyers. One of the Counties involved says it received about 1,000 complaints about deed forgeries on properties in the last few years. Although the district attorney’s office in Riverside County, CA successfully prosecuted the forgery ring, the rightful landowners learned that it takes a lot of grief, money and time to undo a phony transaction once filed with the county recorder. Albert and Joy Rivera, scammed owners of the real estate with forged deeds filed to a straw buyer, said they feel lucky that they got their land back six months ago after 3 stressful years and paying out $20,000 in lawyer fees.
Among eight defendants who pleaded guilty in the fraud cases, the notary was sentenced to prison for 3 years, 4 months, while the real estate agent who helped to find vacant parcels, got 9 years, 4 months. The last defendant, thought to be the instigator, got 15 years 4 months in state prison as his sentence.
Los Angeles County, CA has obtained legislation to notify residents when deeds are recorded against their property. “I think we have a very successful program and it is a good model for other counties to implement,” said Mr. Herrera, director of the Los Angeles County Department of Consumer Affairs. The legislation allows charging a fee to fund the program.
Another remarkable story for WHY people should purchase a title policy. To see the more details of the story see FRAUD CASES
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03.27.08
Posted in Industry News, Mortgage and title Fraud at 11:57 am by Jeanne
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?
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03.20.08
Posted in Education, Industry News, Licensing, Money and Finance, Mortgage and title Fraud at 2:11 pm by Jeanne
Last month the Minnesota Department of Commerce announced it had taken action against another kickback scheme in which a title insurance agent set up sham affiliated businesses with real estate agents, mortgage originators and developers in order to get around state and federal laws prohibiting direct payments for referrals. The Department shut down six more sham affiliated business by revoking their title insurance licenses. Licenses revoked included: 1st Title, St Louis Park, MN; Timberland Title, Arden Hills, MN; Royal Title, Minneapolis, MN; St. Cloud Title & Abstract, St Cloud, MN and Foundation Title, Brooklyn Center, MN. The final company, Desert Sun Title, did not even have an address or any referral partners. It also fined Premier Title Insurance Agency $175,000 for the kickback scheme.
According to the MN Dept of Commerce enforcement web site, Premier Title Insurance “created and controlled sham Affiliated Business Arrangements (ABAs), employed or contracted with parties not licensed to sell insurance, ABAs sold Fidelity National Title’s policies, unlicensed people were paid commissions, and failed as a supervising agent to ensure that ABA relationships were disclosed..” They also “paid kickbacks or other things of value to its referral partners for the referral of title insurance business and real estate closings.”
Last year, the MN Department of Commerce fined First American Title Insurance Company of Santa Ana, California, $500,000 and shut down 35 of their sham affiliated businesses.
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01.04.08
Posted in Money and Finance, Mortgage and title Fraud, Real Estate fun, Value of a title searcher at 2:42 pm by Jeanne
Ten years ago, who would have believed the sleepy little Title Insurance business could be the subject of an amazing true crime book. Yes, we’re all reminded daily of the problems in our industry: greed, fraud, forgery, gluttony, sub-prime lending, phoney appraisals and more, but now here’s a real life tell-all.
A Family Cursed: The Kissel Dynasty, a Gilded Fortune and Two Brutal Murders uncovers classic Title Mafioso. The author, Kevin McMurray covers the life of two wheeling-dealing brothers. Andrew Kissel was convicted of forging mortgage deed releases and other fake documents to subvert millions in order to live an excessive lifestyle.
But Fidelity National Title recognized Kissel’s mortgage scam. By searching title to property, Fidelity found several active mortgages on property being used as collateral to secure a $6 million mortgage loan. Kissel gave Fidelity falsified mortgage releases to show the loans were paid off. Creating the bogus documents was as easy as the click of a mouse, McMurray accurately writes. Had it not been for a thorough Title Underwriter (You’ll have to read the book to find out how they figured it out) Kissel would probably still be perpetrating his real estate fraud. He was charged with federal bank fraud obtaining tens of millions in fraudulent loans from banks and other institutions.
I am an avid reader of mysteries, etc. but this one really hits home not because it’s just plausible, but because it happened and continues to happen every day.
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08.03.07
Posted in Education, Mortgage Problems, Mortgage and title Fraud at 3:44 pm by Jeanne
“Mortgage Industries Wild Ride ends with new laws” as stated in Twin Cities Pioneer Press Paper see article
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