Thursday, November 10, 2005
Former Title Company VP Pleads Guilty
Thomas Kurzenberger Jr., 37, Ballwin, Missouri, the former vice-president of Title Insurers Agency, Inc., 226 South Meramec Avenue, Suite 200, Clayton, Missouri, was charged by information and pled guilty to one count of mail fraud in connection with allegations that he diverted almost $2.8 million from title company escrow accounts.
According to court records, between January 2000 and June 28, 2005, Kurzenberger withdrew approximately $2,768,882.04 from the main escrow or construction escrow accounts maintained by Title Insurance Agency. He spent approximately $1,251,045.41 to pay for personal expenses and the used the remaining approximately $1,517,836.53 to cover general operating expenses of Title Insurance Agency. He continued to make escrow agreements and accept escrow deposits despite and without disclosing the fact that there was an escrow deficit in excess of $3 million. Columbian National Title Insurance Company (now First American Title) and Chicago Title Insurance Company were the underwriters for Title Insurance Agency. Title Insurers Agency collapsed on or about June 28, 2005. Chicago Title covered in excess of $400,000 of and First American covered in excess of $4.5 million of insufficient funds checks and debts on behalf of Title Insurers Agency.
Kurzenberger is scheduled to be sentenced January 24, 2006 and faces a maximum penalty of 20 years in prison and/or a $250,000 fine.
mortgage fraud
I have a bad feeling that these problems are going to escalate in the future. With the market going the way it is and many title companies facing financial uncertainty I have a feeling that there will be a lot of title company owners who will move escrow funds to cover their operating expenses. I hope I am wrong.
Posted by on 12/10 at 10:03 AM
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
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Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
