Closing Agent Gets 33 Months For Swiping $1.2M+ In Escrow Cash, Leaving Existing Mortgages Unpaid

The U. S. Attorney's Office in Miami, Florida recently announced the sentencing of closing agent John Mohan, 38, of Delray Beach, FL, to 33 months’ imprisonment in connection with his September guilty plea to a one-count Information charging him with wire fraud. An excerpt from their press release:

• According to the Information, court documents, and statements made in court, Mohan worked as a mortgage broker and closing agent who assisted buyers in real estate transactions. As the closing agent, Mohan would collect funds from buyers and lenders, and would represent to the parties engaged in the transaction that these funds were being held in escrow to be disbursed for various specified purposes, including the satisfaction of pre-existing mortgages.

• In fact, Mohan misappropriated the escrowed funds for his personal use and to make additional personal investments. Over the course of the scheme, Mohan misappropriated more than $1.2 million in client funds. In an effort [to] conceal the fraud and prevent immediate foreclosure of the property, Mohan would sometimes make some payments on the homeowner’s original mortgage.

For the press release, see Delray Beach Mortgage Broker Sentenced For Fraud.

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