Forsythe Title and Escrow Services owner charged with embezzlement-fraud www.privateofficer.com
HENDERSONVILLE, TN Jan 9 2013
A Hendersonville businessman was indicted on wire and bank fraud charges after embezzling funds for eight years, according to the U.S. attorney’s office.
Garry Christopher Forsythe, 40, of Hendersonville, TN, is charged with six counts of wire fraud and three counts of bank fraud.
Forsythe is the former owner and operator of Forsythe Title and Escrow Services, Inc., a real estate closing company and title insurance agent located in Hendersonville.
According to the indictment, between December 2000 and January 2008, Forsythe received money from buyers of real properties and from mortgage lenders financing the purchase of the properties for the purpose of closing real estate transactions.
Forsythe Title acted as the settlement agent and the money received by Forsythe Title was supposed to be deposited into an escrow account and used to pay only the expenses of closing real estate transactions.
However, Forsythe is accused of transferring, or causing the funds from the Forsythe Title escrow accounts to be transferred to the Forsythe Title operating account.
These funds exceeded the fee income that Forsythe Title legitimately earned from the real estate transactions and were used to cover the operating expenses of Forsythe Title and to pay compensation to Forsythe.
The indictment further alleges that Forsythe knew that the total funds in the escrow account were insufficient to cover the total amount of the checks.
Forsythe is also accused of failing to disclose to employees of Forsythe Title and to the parties involved, that there was a shortage of funds in the company’s escrow account.
According to the U.S. Attorney’s office, checks issued to pay the expenses of closing the real estate transactions would be returned by the bank because the escrow account contained insufficient funds to cover all of the checks issued.
According to the indictment, Forsythe’s scheme caused losses of more than $2.2 million. If convicted, Forsythe faces up to 30 years in prison and a $1 million fine.
Source:WSMV
