Felony Theft Conviction For DE Man Who Pocketed R/E Sale Proceeds w/out Paying Off, Disclosing Existing Liens; Unwitting Buyers Left In Foreclosure

In Bridgeville, Delaware, The Daily Times reports:

• Sussex County businessman James Tennefoss, [...] has been convicted of felony theft in two property sales cases. Prosecutors charged that Tennefoss used properties near Bridgeville and Georgetown as collateral in loans in 1999 and 2001, totalling $97,500.

• But in 2005 and 2006, his companies sold the properties, without Tennefoss disclosing that their uses as collateral. Tennefoss eventually stopped paying on the loans, and the lender began foreclosure proceedings against the new owners, which are still pending. Tennefoss' two corporations, Jim Lee Inc., and Southern Delaware Developers Inc., were together paid more than $251,000 for the two properties.(1)

For the story, see Former Sussex restaurateur convicted of felony theft.

(1) The story is silent as to whether:

• the new buyers possibly paid all cash for the properties and failed to obtain a title search and purchase title insurance protection, or
• in the event title work was performed on the properties, the title agent either screwed-up or played a role in the fraud, thereby possibly leaving the title insurance underwriter issuing the policy as an additional victim of the scam.