The owner and president of a North Carolina title insurance agency pled guilty to insurance fraud in federal court, according to an announcement from the U.S. Attorney. Robert B. Herbert, Jr. of Raleigh allegedly “embezzled and misappropriated moneys from Stewart Title from March 2, 2000 to May 31, 2000,” according to documents referenced by the U.S. Attorney.
The announcement went on to say that an audit of the company that Herbert owned and operated — Carolina Title Insurance Agency — revealed that more than $700,000 was missing from various escrow accounts.
Tom Kennedy, who is the national claims counsel for Stewart Title, told MortgageDaily.com that he was “certainly pleased that justice is being served.” He also indicated that while this case did not involve mortgage fraud, he has seen a recent increase in mortgage fraud-related claims. Specifically, buyers are writing fraudulent checks at the closing of their home purchase. He indicated that current printer technology makes it easy to print fake checks — even checks that “look certified.”
Kennedy says that fraud prevention at Stewart occurs through training of issuing agents.
The U.S. Attorney’s office said in its announcement that Herbert could receive a maximum sentence of 10 years’ imprisonment, a fine of $250,000 and a supervised release term of three years.
