Another Multi Million $ Florida Escrow Scandal; $8 Million Missing
It's been a busy last week and a half or so in Florida for escrow agents accused of swiping other people's money that has been entrusted to them in connection with pending real estate transactions.
In the most recent scandal, reported in the St. Petersburg Times, a whistleblower's phone call coming from within Gulf Coast Title Closings and Escrow Services is reported to have triggered an investigation that resulted in yesterday's arrest of Gulf Coast's owners, Cheryl L. Wehlau and John T. Wehlau, who are currently being held by authorities on $5-million bail. They were each charged with 25 felonies - grand theft, money laundering and theft of escrowed funds.
According to an attorney for Commonwealth Land Title Insurance Co., the underwriter that wrote title insurance policies for Gulf Coast and discovered the misappropriations, $7.99-million was stolen from escrow accounts at Gulf Coast, leaving Commonwealth holding the bag, having to cover hundreds of bad checks that started bouncing all over Florida.
Hundreds of people and companies filed claims on bad checks disbursed at Gulf Coast closings, including one couple who sold their home and walked out of a Gulf Coast closing with a rubber check for almost $140,000. After three weeks of experiencing panic and increased high blood pressure when discovering that Gulf Coast had shut down, the couple received full reimbursement from Commonwealth, which reportedly was legally required to cover the Gulf Coast losses.
The funds were allegedly spent entirely on a lavish lifestyle, as a search of the couple's assets hasn't turned up much. For more, see Lavish life over, pair face prison (Title business misspent millions, authorities say).
Go here for other posts on this story.
Go here for stories on other alleged escrow agent mishandling of funds. sneaky slick escrow agents alpha
In the most recent scandal, reported in the St. Petersburg Times, a whistleblower's phone call coming from within Gulf Coast Title Closings and Escrow Services is reported to have triggered an investigation that resulted in yesterday's arrest of Gulf Coast's owners, Cheryl L. Wehlau and John T. Wehlau, who are currently being held by authorities on $5-million bail. They were each charged with 25 felonies - grand theft, money laundering and theft of escrowed funds.
According to an attorney for Commonwealth Land Title Insurance Co., the underwriter that wrote title insurance policies for Gulf Coast and discovered the misappropriations, $7.99-million was stolen from escrow accounts at Gulf Coast, leaving Commonwealth holding the bag, having to cover hundreds of bad checks that started bouncing all over Florida.
Hundreds of people and companies filed claims on bad checks disbursed at Gulf Coast closings, including one couple who sold their home and walked out of a Gulf Coast closing with a rubber check for almost $140,000. After three weeks of experiencing panic and increased high blood pressure when discovering that Gulf Coast had shut down, the couple received full reimbursement from Commonwealth, which reportedly was legally required to cover the Gulf Coast losses.
The funds were allegedly spent entirely on a lavish lifestyle, as a search of the couple's assets hasn't turned up much. For more, see Lavish life over, pair face prison (Title business misspent millions, authorities say).
Go here for other posts on this story.
Go here for stories on other alleged escrow agent mishandling of funds. sneaky slick escrow agents alpha
posted by Home Equity Theft Reporter at 7:38 AM
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