Feds Charge Title Agent With $900K+ Heist From House Closings; Homeowners Left In Foreclosure; Underwriter Says Suspect Unauthorized To Issue Policies

In Louisville, Kentucky, The Courier Journal reports:

• [A] former lawyer, Wavy Curtis Shain, 26, was charged [last week] with carrying out various schemes to defraud banks and mortgage companies. He is accused of using businesses he owned and operated, Derby City Title and Capital Distribution LLC, to carry out the schemes.

• He also is charged with misappropriating substantial amounts of money received on behalf of borrowers using Derby City Title to obtain loans to purchase homes. In doing so, he allegedly failed to pay off existing loans and mortgage held by the sellers of those houses. Shain also is charged in the indictment with perpetrating a check-kiting scheme using business and personal accounts maintained with US Bank and BB&T bank.

For the story, see Suspended, former lawyers charged.

In a related story, WAVE-TV Channel 3 reports:

• Seven families could lose their homes any day now, even though they did nothing wrong. They made their house payments on time, but their homes are still going into foreclosure. They say it happened after a Louisville man scammed them out of almost a million dollars during a re-finance of their mortgage.

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• Federal investigators believe [Wavy Curtis] Shain pocketed more than $900,000 from seven families. The FBI has charged him with theft.

According to the WAVE-TV Channel 3 story, Shain, through his company, Derby City Title, purportedly wrote insurance policies for underwriter Investors Title Insurance Company. Officials from Investors Title reportedly told Channel 3 that Derby City Title was never authorized to issue policies for them.

For more, see Title company's failure to make loan payments means families could lose homes.

Go here, Go here, Go here, and Go here for other stories of trust account / escrow account theft of funds. EscrowRipOffAlpha