Superintendent Felecia Rotellini announced that the Arizona Department of Financial Institutions ("DFI") has, since January 2007, issued 12 final administrative removal orders that remove & prohibit former escrow officers & a loan officer from working within the financial services industry. Two more removal actions were recently filed & several more are in the process of being completed & filed as DFI continues to focus more of its resources on the examination & investigation of mortgage fraud. The administrative removal orders & Notices of Hearing below can be found at: azdfi.gov/Final/Intro.htm.
Chris Bartlemus, a former escrow officer at Security Title Agency, Inc., improperly disbursed $1,335,190.39 contrary to the provisions of HUD-1 escrow statements or written escrow instructions. He was also indicted by federal authorities in March 2008 on charges of conspiracy, mail fraud, wire fraud, bank fraud, & money laundering.
Margie Lynn Means, who is now a convicted felon, fraudulently diverted $547,268.40 in escrow funds from Security Title Agency, Inc. to herself & her daughter. She was employed as a branch manager & escrow officer for 21 years at Security Title Agency, Inc.
Annette Marie Damico, a former mortgage payment processor, embezzled $142,456.72 from Security Title Agency, Inc. where she worked for 18 years. She plead guilty to Theft, a Class 2 Felony.
Sandra J. Flores, a former escrow officer, misappropriated $18,800 by depositing 5 checks into her own personal bank account while working at Pioneer Title Agency, Inc. She then misappropriated 20 checks totaling $32,934.18 while being employed at Transnation Title Insurance Company.
Claudia Denise Ramsey, a former escrow officer at Lawyer’s Title of Arizona, Inc., embezzled $3,250.24 by diverting escrow funds into a company that she managed.
Anna Solis, a former escrow officer at Transnation Title Insurance Company & Camelback Title Agency, L.L.C., was directly involved in a $48,947.48 defalcation at Transnation, which consisted of 127 forged checks. She also wrongfully disbursed escrow funds involving 47 escrow files while employed at Camelback Title.
Nancy Wilson, a former escrow officer at LandAmerica Financial Group, Inc., misappropriated $57,385.56 in escrow funds to pay personal credit card accounts.
Francisco Vicente Martinez, a former loan officer at Security Mortgage Corporation, violated Arizona mortgage banker laws by making a misrepresentation in the course of the mortgage banker business. He was also convicted of Forgery, a Class 4 Felony.
Mary Lou Pidd, a former escrow officer at Title Security Agency, Inc. & Ticor Title Agency of Arizona, Inc., used her position as an escrow officer to wrongfully divert $17,211.78 in escrow funds to her personal bank accounts.
Cine Johnson, a former escrow officer, misappropriated $30,000 in escrow funds while working at LandAmerica Transnation Title, Inc.
Wendy Kaufmann (formerly know as Wendy Hahn), a former branch manager at Premier Title Agency, L.L.C., wrongfully diverted $145,525.27 in escrow funds through unauthorized wire transfers. She was also a branch manager at Arizona Title Agency, Inc. where she wrongfully diverted $21,311.30 by wrongfully handling her own refinance transaction.
Lisa Gorney, a former escrow officer & branch manager at Premier Title Group, diverted & misappropriated escrow funds totaling $995,952.83. After a joint investigation between the Arizona Attorney General and DFI, she was indicted in March 2008 on charges of theft, fraud, & illegally conducting an enterprise.
On April 24th, 2008, DFI filed a Notice of Hearing & Intent to Remove & Prohibit from Further Participation in any Manner in the Conduct of the Affairs of a Financial Institution or Enterprise & Complaint ("removal order") against loan officer, Rick T. McCullough, alleging the following violations of mortgage broker statutes: (1) concealing essential material facts; (2) misrepresenting & making false promises; (3) failing to maintain good standing with the Arizona Corporation; (4) failing to comply with the requirements under RESPA & CCPA; (5) failing to issue &/or maintain a statutorily correct written document agreement; (6) violating DFI’s prior Consent Order; & (7) engaging in illegal & improper business practices. On June 23rd, 2008, a hearing was held at the Office of Administrative Hearings following Mr. McCullough’s default. DFI presented evidence along with witnesses’ testimony.
On May 13th, 2008, DFI filed a removal order against Cindy O. Peterson, a former First American Title Insurance Company escrow officer, alleging that Ms. Peterson wrongfully diverted & disbursed unauthorized escrow funds totaling $20,124.53. She was also employed as an escrow officer & branch manager at Premier Title Group where DFI alleges Ms. Peterson disbursed unauthorized escrow funds totaling $2,278 & file discrepancies totaling $50,485.81.
By law, as a result of a final order, individuals found to be unfit or dishonest, or individuals convicted of a crime involving fraud & deceit may not be employed by any financial institution or enterprise regulated by DFI, without the Superintendent’s prior approval.