Sticky-Fingered Closing Agents Get Prison For Roles In $4.1M Escrow Account Ripoff; Used Check-Kiting Scheme In Failed Attempt To Conceal Dirty Deeds

From the Office of the U.S. Attorney (Springfield, Missouri):

• Beth Phillips, United States Attorney for the Western District of Missouri, announced [] that the owners of Guaranty Title, formerly headquartered in Nixa, Mo., have been sentenced in federal court for their roles in $4.1 million wire fraud, bank fraud and money laundering conspiracies.

• Richard G. “Rick” Burton, 60, of Nixa, Mo., and Kathy Cyrena Allen, also known as Kathy Stanton, 53, of Sarcoxie, Mo., were sentenced in separate hearings before U.S. District Judge Greg Kays on Tuesday, Nov. 30, 2010. Burton was sentenced to six years and six months in federal prison without parole. Allen was sentenced to three years and three months in federal prison without parole. The court also ordered Burton and Allen to pay $4,150,663 in restitution, for which they are jointly and severally liable.

• Burton and Allen participated in a scheme to defraud financial institutions and individuals of more than $4.1 million through a series of illegal financial transfers related to stolen escrow payments. They attempted to conceal their criminal activities through a substantial check-kiting scheme. Both Burton and Allen pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering. Allen also pleaded guilty to conspiracy to commit bank fraud.

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• Burton and Allen admitted that they took a portion of the escrow money that had been transferred into these escrow accounts. In violation of Guaranty’s promise not to do so, they caused $3,467,709 of stolen escrow funds to be diverted into the firm’s business operations account and used the money for the day to day business operations of Guaranty.

For the U.S. Attorney press release, see Owners Of Guaranty Title Sentenced For $4.1 Million Fraud.