Feds Continue Probe Into Now-Defunct Closing Agent Accused Of Illegally Pocketing Real Estate Escrow Cash Intended To Pay Off Existing Mortgages

In Luzerne County, Pennsylvania, The Times Leader reports:

• The U.S. Secret Service is still actively investigating Priority Search Inc., a defunct Kingston title search company, for allegedly keeping money owed to property sellers, according to Secret Service spokesman Bob Slama. Slama could not comment on the ongoing investigation, but an insider said charges are expected to be filed soon.

• Dozens of victims have contacted the Secret Service to report claims against Priority Search, a Secret Service representative said in March. The U.S. Attorney’s Office also is involved in the investigation. The investigation became public in November 2008 after property sellers publicly complained that the company kept money from buyers that was supposed to be used to pay off mortgages and other outstanding property bills.

For more, see Area firm still under fed probe (Now-defunct title search company in Kingston allegedly kept cash owed to property sellers, Secret Service says).

(1) As a result of the closing agent's failure to pay an existing mortgage, the home seller in one case reportedly found itself in the position of having to sue his innocent homebuyer in order to get the buyer's title insurance underwriter to cough up the cash pursuant to the terms of the buyer's title policy.