California Real Estate Fraud Report

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15
Jun

Investors Win $2.15M Judgment in Escrow Fraud Case

Two investors who sued an escrow office in Orange County for escrow fraud have been awarded $2.15 million in a jury trial.

On March 20, 2012, Klinedinst attorneys Greg A. Garbacz and Christopher D. Holt succeeded in trial involving a multi-million dollar fraud, breach of contract, and breach of fiduciary duty case. Gatew

In Christian Astillero, et al., v. Gateway Title Company, et al., Greg A. Garbacz and Christopher D. Holt represented the two investors who had lost $1,250,000 in a Ponzi scheme involving High Park Financial Group and its owner Edward Showalter. The investors had been told to deposit their funds with Gateway Title Company (now doing business as Pacific Coast Title, a Fidelity National Title subsidiary), which, without their knowledge or permission, had released funds before the escrow instructions had been satisfied.

At the instruction of High Park, the two defrauded investors had deposited their investment monies with Gateway. According to the lawsuit, without the investors’ knowledge, Gateway had prematurely released those investment monies before the escrow conditions were satisfied, resulting in the loss of the investment in High Park’s Ponzi scheme. The plaintiffs and their attorneys accused Gateway’s escrow officers of being aware they were committing escrow fraud and in fact were active participants in the scheme to defraud them and institutional lenders.

Edward Showalter was indicted, pleaded guilty and was sentenced for defrauding over 70 investors of over $12 million.

Read the original article in PRWeb.

© Copyright 2007-2017 Monique Bryher

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