A federal grand jury has indicted the owner of Phoenix Title on wire and bank fraud charges connected to a $3.9-million mortgage fraud scheme.
41-year-old James Andrew Thurman, 41, of the 2600 block of Hampton in St. Charles, was indicted on nine felony counts of wire fraud and one felony count of bank fraud
Federal prosecutors say that, beginning in 2002 and continuing until April 2005, Thurman defrauded Phoenix Title's customers of approximately $3,840,000 and defrauded First Bank of St. Charles of approximately $100,000.
They say Thurman fraudulently transferred approximately $3.84 million from Phoenix Title's customers' escrow funds to either a second company he owned, James Andrew Properties, Inc., or to his own personal bank account.
Phoenix Title, Inc. was formed in 1996 and was located at 324 N. Main Street in St. Charles. The company conducted real estate closings and loan closings for its customers. Prosecutors say Phoenix Title was obligated to receive money from lenders for a particular loan, hold the money in escrow, receive and hold a customer's earnest money deposit, and then use these monies to make payments in accordance with the particular loan's settlement statement. Phoenix Title also sold title insurance policies while acting as an agent for two underwriting title insurance companies, Fidelity National Title Insurance Company, Jacksonville, Florida and Guarantee Title Insurance Company, Creve Coeur, Missouri.
In January, Thurman allegedly ordered his employees to delay disbursements of customers' escrow funds for ten days in order to mask shortages in the customers' escrow funds. Phoenix Title's underwriter at the time, Fidelity National Title, learned of the delay and contacted Thurman to schedule an audit.
Prosecutors say Thurman then borrowed nearly $2-million from his parents and deposited it into Phoenix Title's accounts in odd amounts in order to make the deposits appear as normal business receipts.
