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Weekly UpdatesA title insurance company recently accused a Searcy company and its owner of misusing funds.
Old Republic National Title Insurance Co. of Minneapolis has sued Landmark Closing Co. and its owner, Marci Ingram, for "making improper and unauthorized disbursements."
Old Republic said its investigation had revealed that lien payoffs totaling at least $426,893 had not been paid. These liens were to be paid off in connection with the closing of mortgages in which Old Republic had issued or was obligated to issue title insurance.
Old Republic also found that "on several occasions during 2007, 2008 and 2009, funds held in Landmark's primary escrow account had been transferred to other working accounts of Landmark, or had been disbursed from the escrow account for unauthorized purposes," the lawsuit said.
Old Republic also found that Landmark didn't hand over nearly $15,000 in Old Republic insurance premiums that it collected, the lawsuit said.
And Old Republic said the unauthorized disbursements from Landmark's escrow account have "created and/ or will create a shortfall ... which at present has been determined to be in excess of $460,000."
Old Republic is suing on several counts, including breach of contract, negligence and theft. Old Republic also has received a temporary restraining order against Landmark to prevent its officers from destroying evidence or disbursing any more money.
Landmark recently closed its office, but Ingram said that was because of the recession, not the allegations in the lawsuit.
"This is a civil case, not a criminal case," Ingram said. "I haven't wronged my customers. All my customers have been taken care of. The allegations from Old Republic are false."
She said she is looking for an attorney. "And I will have my day in court," Ingram said.
It was only last month that Landmark took out an advertisement in the Arkansas Democrat-Gazette.
"I'd like to personally Thank everyone that have recently helped us record some of our busiest weeks since the start of the U.S. economic crisis," Ingram wrote, using some non-standard capitalization, punctuation and grammar. "We pledge now more than ever, to become the finest Closing and Title company, in Searcy."
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