Underwriter completes Guaranty Title audit

For two and half months, auditors with Virginia-based LandAmerica Financial Group audited the remnants of Guaranty Title Co., which closed its doors without warning on June 19. Guaranty Title employed about 45 people at several southwest Missouri offices, primarily in Greene and Christian counties.

Department of Insurance officials received LandAmerica’s audit report Aug. 31 and have requested supplemental information from the underwriter, said department spokeswoman Emily Kampeter. Because the department is investigating Guaranty Title’s closure, Kampeter declined to disclose details from the audit report.

Once the state’s investigation is complete, the department will determine whether to take any disciplinary action against the licensed parties involved, Kampeter said, noting that LandAmerica is among the entities under investigation. At the appropriate time, officials will decide whether to forward evidence to a county prosecutor or the U.S. Attorney’s Office for criminal charges, she said.

As of late June, at least $4.5 million was missing from numerous escrow accounts maintained by Guaranty Title at area banks, according to LandAmerica auditors. The underwriter filed suit against Guaranty Title in Christian County Circuit Court in late June, and its attorneys recently asked a judge to appoint a “master” to oversee the resolution of claims made by former Guaranty Title customers.

See SBJ’s Sept. 10 issue for more about the Guaranty Title Co. investigation.[[In-content Ad]]