Monday, July 06, 2009

Title Insurance Company Owner Charged in $1.7 Million Fraud Scheme

Jonathan Boxman, 46, an owner and operator of real estate title insurance companies, was charged in federal court in Brooklyn, New York, with defrauding clients of title companies he controlled of more than $1.7 million. According to the criminal complaint, Boxman stole money that was entrusted to those companies and used it to pay operating expenses associated with his failing businesses.

According to the complaint, Boxman controlled Titledge Insurance Company of New York, a real estate title insurance company licensed by the State of New York, and various other title abstract companies and agents. A title abstract company or agent performs title searches and other functions on behalf of a title insurance company, including issuing title insurance policies in the title insurance company's name, recording mortgages and deeds, and holding money in escrow. Through his companies and bank accounts, Boxman received fees for the recording of mortgages and deeds, which, in turn, he was supposed to remit to the county where the deed or mortgage was recorded.

However, instead of paying the fees to the counties, Boxman allegedly transferred the money to accounts he controlled and used it to pay his companies' operating expenses and to cover thefts from prior victims of his scheme. The complaint charges that between January 2006 and December 2008, Boxman stole over $1.7 million in recording taxes, other fees, and monies held in escrow, and that as a result of his scheme several mortgages and deeds were never recorded.

"The complaint charges that the defendant placed his own financial interests above those who entrusted their money to him in connection with real estate transactions," stated United States Attorney for the Eastern District of New York Benton J. Campbell. "He will now be held to account for his actions."

FBI Assistant Director-in-Charge Joseph M. Demarest, Jr. stated, "The defendant allegedly violated his clients' trust and misappropriated their money. The FBI is in the business of policing those who would engage in such conduct."

"Consumer protection is the Insurance Department's number one priority. This case proves that government and law enforcement agencies can effectively join forces to protect consumers and bring to justice those who seek to defraud the public," said New York State Insurance Department Superintendent Eric Dinallo.

If convicted of wire fraud, Boxman faces a maximum statutory sentence of 20 years of imprisonment.

The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The government's case is being prosecuted by Assistant United States Attorney Jonathan E. Green.

mortgage fraud

1. I got caught up in mortage fraud in July of 2005 by the second chance program and Jack F. Kellogg,LLC they rasied my rent from $586.00 monthly to $1250.00 put the water bill in my name everything in or around the house is my responsibility plumming, electrical,snow,cutting of grass,everything, so far i,ve manage to stay in my house because i just refuse to just give it up they took my rent down to $900.00 that,s still over half of my income i,m on a pension they know how i feel they even offerd me $5000.00 dollars to move they even said that they would help me refinance didn,t happen that was when they were cunning me out of it everynight is a nightmare not knowing what,s going to happen tomorrow if i,m going to be on the streets just thought i,d let off some steam thank you for listening

   Posted by  on  07/08  at  07:08 PM

2. In June 2005 I purchased my first home in East Elmhurst, Queens NY, I was a victim of fraud by Integrity Title Insurance, one of Boxman’s company, they insured title on a property which after a few months and an extensive research in public records I found out that said property is not legal and there is an existing lien from NY City. This fraud was perpetrated in complicity with Rockaway Storage Inc. the seller, Thomas Benvenuto the appraisser and Southern Star Mortgage the lender. I filed two lawsuits on my own (pro-se) against the title company and the seller, still in process. I wish I get some support in my fight to receive justice.

   Posted by  on  10/08  at  06:05 AM