3 Accused With Stealing $4M In Escrow Funds; Title Insurer Takes $3M+ Hit; Used Photoshop Software To Create Altered Bank Statements, Say C. Fla. Cops

In Orange County, Florida, WDBO Radio reports:

• Orange County Sheriff's Economic Crime Unit arrested Michelle Worley [...] on grand theft charges. Deputies allege that between December 2004 and July 2006, Worley and the partners of Preferred Alliance Title, Patrick Torre and John Callaghan, misappropriated approximately $4 million in escrow funds. Investigators say the escrow funds were used to operate other businesses such as a real estate company, a restaurant and a magazine publishing company.

• The suspects, investigators say, were able to hide their fraud from Stewart Title Guaranty, by conducing fraudulent monthly bank reconciliation with altered bank statements. Stewart Title insured a number of real estate transactions which were closed at Preferred Alliance Title. After satisfying all of the lien holders and various other entities, Stewart suffered an approximately $3.1 million dollar loss.

Source: Three accused of multi million dollar fraud.

See also, Orlando Sentinel: Third suspect arrested in $4 million escrow-fraud case:

• [T]hey hid their activities from Stewart Title Guaranty, referred to as the "victim," by creating altered bank statements with Photoshop software, the Sheriff's Office's economic-crime unit said. EscrowRipOffAlpha