Former title insurance exec sentenced to prison
|January 30, 2006|
Nailed in connection with $5.7 million mortgage fraud
The former president of a Missouri title insurance company was sentenced to six years in prison in connection with a $5.7 million mortgage fraud scheme, the St. Louis Business Journal reported.
Thomas Kurzenberger Jr., former vice president of Title Insurers Agency Inc., was sentenced to six years in prison on fraud charges involving a $5.7 million mortgage fraud scheme, officials said last week.
Kurzenberger Jr., 37, of Valley Oak Court, Ballwin, was sentenced on one felony count of mail fraud, reports said. Senior Judge Stephen Limbaugh Jr. also ordered Kurzenberger to pay $5,731,535 restitution, United States Attorney Catherine L. Hanaway announced Tuesday, according to reports.
Kurzenberger allegedly used customers' escrow deposits to support his drug habit and spent about $162,000 of customers' escrow funds at an adult nightclub, according to evidence records presented at sentencing, the Business Journal reported.
Between January 2000 and June 28, 2005, Kurzenberger withdrew millions of dollars from Title Insurers Agency's main escrow account or construction escrow accounts, which resulted in $5,731,535 of losses claimed by victims, evidence presented at sentencing said, according to reports. He used $1,251,045 of the funds to pay his personal credit card bills, media reports said.
Additionally, between January and June 2005, Kurzenberger continued to enter into escrow agreements, and accepted escrow deposits from customers, without disclosing that there was a deficiency in the agency's escrow accounts, reports said.
Copyright 2006 Innam News