Lawsuit Involving Title Underwriter Revolves Around $5.1M In Missing Escrow Funds Once Held By Now-Defunct Agency

In Christian County, Missouri, the Springfield Business Journal reports:

• A Branson development company suing a Nixa-based title agency that suddenly ceased operations in June will soon have access to internal documents subpoenaed from the agency’s underwriter. On Jan. 9, Christian County Circuit Judge Mark Orr heard from attorneys representing Branson Hills Development Co. and LandAmerica Financial Group, the Virginia-based company that underwrote title policies issued by Guaranty Title Co. LandAmerica pulled the plug on its agent after evidence of an alleged check-kiting scheme surfaced and immediately initiated an audit that found at least $5.1 million missing from Guaranty Title’s escrow accounts at area banks. The money belonged to developers, banks and builders as well as homebuyers and sellers who found themselves out of luck when Guaranty Title was shut down. The agency – co-owned by Rick Burton, Kathy Allen and Stephanie Gray – had at least nine regional offices that employed some 45 people.

The developer is seeking to hold LandAmerica responsible for the actions of Guaranty Title based on its agency agreement with the now-defunct title company. For more, see Judge OKs subpoena of Guaranty Title audits (Branson Hills attorney asserts that the underwriter is party responsible for actions of defunct title company).

For an earlier SBJ article on this case, see Attorneys flood courtroom chasing Guaranty Title funds (Problem: Amount left behind is unclear and reportedly dwindling).

Click here for more in SBJ's ongoing coverage of Guaranty Title's collapse.

See Theft Of Escrow Funds I and Theft Of Escrow Funds II for other stories of trust account / escrow account theft of funds. sneaky slick escrow agents beta