Tuesday, September 11, 2007
Kentucky Woman Indicted for Diverting Closing Funds
Nancy Netherton, 49, Louisville, Kentucky, was indicted on seven counts of wire fraud for diverting over $1.5 million designated for the mortgage closings of seven properties, five in Ohio, one in Tenessee and one in Texas.
The Indictment alleges that between August 1, 2002 and August 1, 2004, Netherton, the president of Preferred Title Inc., diverted funds belonging to customers of Commonwealth Land Title Insurance Company that were wired to Preferred’s escrow account and intended for use in real estate closings with Commonwealth. As president of Preferred, she was also the agent for Commonwealth. Netherton diverted such funds into bank accounts over which she had control and then used these diverted funds for her personal benefit and for purposes other than the closing for which the funds were wired to Preferred’s escrow account. To further her scheme to defraud, Netherton caused fraudulent HUD-1 statements to be transmitted, that falsely reported that the proceeds of real estate closings had been used to satisfy various lien holder’s interests, when, in fact, such proceeds had been used for personal purposes or to pay off overdue mortgage liens that were delinquent as a consequence of Netherton‘s fraudulent scheme. In all, Netherton illegally diverted over $1.5 million.
In the event of a conviction, the maximum potential penalties are not more than twenty years imprisonment, a $250,000 fine, and supervised release for a period of three years.
Netherton is scheduled to appear for arraignment before the United States Magistrate Judge on September 18, 2007 at 9:30 a.m., in Louisville, Kentucky.
mortgage fraud
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Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
U.S. v. Miller, et al.
Thursday, December, 18, 2008
Verdict:
F. Jeffrey Miller Guilty of Conspiracy and Money Laundering
Steven Vanatta Guilty of Conspiracy , Money Laundering and Bank Fraud
Hallie Irvin Guilty of Conspiracy , Money Laundering and Bank Fraud
Sandra Jo Harris Not guilty- all counts
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
