Escrow Agent Gets 4 Years For Real Estate Closing Ripoffs; Handiwork Included Failure To Properly Record Deeds While Pocketing Lien Payoff Proceeds

From the Office of the U.S. Attorney (Baltimore, Maryland):

• U.S. District Judge J. Frederick Motz sentenced Daniel E. Fink Jr., age 44, of Baltimore, who operated Homemaxx Title & Escrow LLC (Homemaxx), a title company that conducted residential real estate closings with offices in Middle River and Parkville, Maryland, [] to four years in prison, followed by three years of supervised release, for wire fraud in connection with a scheme to defraud lenders and homeowners of more than $2.2 million. Judge Motz also ordered Fink to forfeit $2.2 million and to pay restitution in the full amount of the victims’ losses. The total loss amount has not yet been determined, but is estimated to be at least $2.2 million.

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• According to Fink’s plea agreement, from February 2003 to July 2004, Fink defrauded lenders, a title insurance company, and homeowners to obtain more than $2.2 million. Fink made arrangements for Homemaxx to act as the title company for real estate settlements and refinancing transactions. Lenders deposited funds in Homemaxx escrow accounts that Fink controlled. As part of the scheme, Fink caused title insurance to be issued to individuals purchasing or refinancing real estate, but concealed facts that negatively affected the buyers’ title in the real estate transactions. Fink also made misrepresentations to lenders in connection with transactions in which Fink purportedly was buying or selling the property and handling the settlement on behalf of Homemaxx.

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• In addition, despite Fink’s representations to lenders that escrow funds were properly distributed after settlement, Homemaxx to failed to pay outstanding first mortgages on real estate transactions or to properly record deeds.

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• In April 2004, Fink was confronted by representatives of the title insurance company about substantial amounts of money missing from the Homemaxx escrow account. Fink later fled the Baltimore area and used aliases to engage in real estate transactions in Florida. On March 26, 2009, a federal grand jury in Baltimore returned an indictment charging Fink with wire fraud and money laundering in connection with the scheme. Fink was arrested in Florida on February 15, 2010 by the Palm Beach Police Department.

For the U.S. Attorney press release, see Title Company Owner Sentenced to 4 Years in Prison for Mortgage Fraud Scheme Involving Losses of over $2.2 Million (Was a Fugitive for Almost a Year).