|
| |
|
| |
|
|
|
June 24, 2005Woman charged with skimming $675,000Title company likely to fold, CEO saysByRecord-Eagle staff writer  Karla Sue Lockman, 34, of Boyne City purchased a $262,000 home with cash earlier this year, as well as two vehicles costing more than $67,000, while her alleged embezzlement destroyed Northern Preferred Title Co., law enforcement and company officials said. Lockman was charged Thursday with embezzlement from an agent or trustee greater than $20,000, a felony punishable by up to 10 years in prison and/or a fine of up to three times the amount embezzled. Lockman worked from September 2003 until late last month as a closing agent for Northern Preferred's Boyne City office. The company also has offices in Charlevoix and East Jordan. Lockman's alleged embezzlement forced the company to lay off most of its 16 employees, CEO John Taylor said. The company lost its underwriter in the wake of the crime and is unable to take in additional work, he said. "It's going to eventually cause us to close our doors," he said. Added Charlevoix County Prosecutor John Jarema, "The fallout of this crime has affected numerous, numerous people and their families." Boyne City assistant police chief Jeff Gettel, in an affidavit filed with the county district court, stated Taylor and title company attorney Edward Engstrom alerted police to the alleged embezzlement on June 1, after hearing from property buyers, sellers and lenders that they were not receiving money they were owed. Lockman handled all of the closings in question, Gettel's affidavit stated. Taylor and Engstrom reported missing a number of checks from the company's escrow account that were originally issued to those owed money after closings. The checks were canceled out of the title company's computer and reissued and deposited in Lockman's personal account at Bay Winds Federal Credit Union, Gettel said. A review of Lockman's credit union account through a search warrant showed perfect matches of the missing title company escrow payments and the checks deposited in her personal account, Gettel said. Lockman declared bankruptcy last August, Gettel said. Investigators believe more than $673,000 has been "run through" Lockman's personal credit union account from Northern Preferred Title's accounts, Gettel said. Even more allegedly embezzled money may yet be discovered, as police are awaiting records for another personal bank account of Lockman's out of Hillman, he said. Lockman allegedly told police she received the money for the home and vehicle purchases from a "pre-inheritance" payment of $437,000 from her parents last February, Gettel said. Lockman would not give police her parents' names to verify her story, he said. Police later determined the identity of Lockman's parents in Hillman, contacted them, and both denied giving their daughter any money, Gettel said. The title company filed a civil suit against Lockman, Bank of Northern Michigan and Bay Winds Federal Credit Union, the respective financial institutions of Northern Preferred Title and Lockman. The lawsuit seeks unspecified damages and an injunction freezing most of Lockman's assets. In its complaint, the title company states the bank and credit union "knew, should have known or should have inquired" as to whether Lockman had the authority to take proceeds from the checks. The suit calls on the financial institutions to credit Northern Preferred Title's account with the missing money. Lockman was free after posting 10 percent of a $50,000 bond. Her preliminary examination is set for July 12 in district court.
|
|
