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Sarbanes-Oxley News & Developments
Five Charged with $80 million Trust TheftFive executives of a now-defunct title insurance company have been indicited by a federal grand jury in Chicago.
> > The five defendents were top officials in the late 1990s with Chicago-based Intercounty Title Company of Illinois and Orland Park based independent Trust Corp., known as Intrust. the executives allegedly transfered $68 million from Intrust accounts into escrow accounts they controlled at Intercounty Title.
The Intercounty Title accounts also contained millions of dollars for real estate closings, according to the 17 count indictment. The defendents then allegedly stole more than $80 million in co-mingled funds from the escrow accounts to keep their title insurance businesses afloat and for personal use.
Intrust customers lost $68 million from uninsured accounts.
Federal regulators shut down Intrust and Intercounty in 2000 and have been investigating into the fraud.
The principal defendents are Laurence W.Capriotti, a lawyer in Frankfort, and Jack L.Hargrove, a real estate developer in Florida. Together they controlled Intrust, Intercounty and other related companies. They plowed more than $70 million of the stolen funds into their failing businesses and used some $10 million to pay credit card bills, hire family members and buy real estate, according to the indictment. Other defendents include Michael D.Thyfault of LaGrange, James R.Wallwin of Darien, and George J. Stimac of Chicago.
In addition to fraud and federal income tax offenses, the indictment seeks forfeiture of $80 million, three homes, and interest in a condominium development firm that owns land in Mokena that Mr. Hargrove has interest in.
Source: Chicago Business article
Published:2003-08-13
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