Closing Agent Gets 6+ Years For Illegally Pocketing $4.6M In Refinancing Proceeds Earmarked For Mortgage Payoffs From At Least 14 Transactions

In Pennsylvania, the Philadelphia Daily News reports:

• A Bryn Mawr businessman was sentenced to 6 1/2 years in jail yesterday for his role in a scheme to bilk homeowners, finance companies and title insurers in connection with mortgage refinancings. Jay Berger, 56, of Bryn Mawr, apologized to the government, his family and victims, saying he had "destroyed" his family and his reputation and "betrayed" those with whom he worked.

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• Authorities said Berger bilked homeowners, finance companies and title insurance companies out of approximately $4.6 million between April 2000 and December 2004. Court papers said Berger acted as a mortgage broker, settlement agent and title insurance agent for real-estate refinancings. Berger or his assistants would attend closings related to loan refinancings. Lending institutions would wire money to an account in Berger's name and he was obligated to pay off the original mortgage.

• Authorities said that in at least 14 instances, Berger did not pay off the first mortgage, as the homeowner, the first mortgage company, the new mortgage company and the title insurance company expected him to do. Instead, he would make some mortgage payments on the first mortgage but keep the bulk of the money for himself.

For more, see Bottom line for Main Line bilker: 6 1/2 years in jail.

Go here, Go here, and Go here for other stories of trust account / escrow account theft of funds. sneaky slick escrow agents gamma