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Brightbridge Wealth Management Headlines: DuPage women get 10 years each in mortgage scam
Brightbridge Wealth Management Headlines: DuPage women get 10 years each in mortgage scam
Two DuPage businesswomen who illegally used money from customers at their Wheaton title company for their personal use each were sentenced today to 10 years in prison and ordered jointly to pay $1.8 million in restitution.
New York,
New York,
United States of America
(prbd.net)
04/07/2011
By Art Barnum
http://www.chicagotribune.com/business/breaking/chibrknews-dupage-women-get-10-years-each-in-mortgage-scam-20110620,0,2571979.story
Two DuPage businesswomen who illegally used money from customers at their Wheaton title company for their personal use each were sentenced today to 10 years in prison and ordered jointly to pay $1.8 million in restitution.
Pamela Williams, 58, of Darien, and Patricia Johnson, 57, of Naperville, pleaded guilty in April to 10 counts of theft, stemming from their operation of the PLM Title Company from 2005 to 2008.
The pair would facilitate homeowners seeking a refinanced mortgage and were supposed to take the funds issued by a new mortgage lender and pay off a customer’s first mortgage.
Assistant DuPage County State’s Attorney Diane Michalak said that the pair “ran the business into the ground” and used their customers’ money to pay off credit cards bills and pay for personal expenses, like Williams’ daughter’s wedding at a DuPage country club, upkeep of a trailer at a Indiana lakeside, and refurbishing Johnson’s home kitchen with new cabinets.
Michalak said that many of their former clients still own double mortgages on their homes and have not recovered from their financial loss, while some have received insurance settlements after many months of paying double mortgages.
“You should be ashamed of your pitiful, disgusting, shameful behavior,” said Judge John Kinsella. “One iota of common sense in your brain should have made you realize what you were doing.”
Mark Kowalczyk, Johnson’s defense attorney, said, “The collapse of the real estate market caught these ladies off guard. They were intending to pay off.”
Michalak acknowledged that the downturn of the real estate market in 2007 had an adverse effect, “but when that crash happened, they just stole more money.”
Several victims testified that they paid off two mortgages for extended periods of time, with some getting insurance settlements and others still waiting for help.
Jocelyn Cole, of Chicago, testified, “I still have two mortgages and I can’t pay the bill. I worked hard for someone to tear it all down.”
Wheaton Detective David Zdan said that the firm closed its doors in 2008 after being confronted with evidence that the officials may have stolen more than $3 million that they were covering up in audits by producing counterfeit bank payments.
Michalak said that the investigation showed that the pair may have illegal taken as much as $3.2 million from September 2005 until the scheme was uncovered in April 2008, and that police believe the theft may have begun as early as 2002, possibly accounting for another $3 million in stolen funds.
She said that from 2005 through 2008 each of their expenses were about $9,000 to $10,000 a month more than their income.
Both Williams and Johnson were eligible for prison terms from four to 15 years.
About
Brightbridge is manager of -- or principal advisor to -- private equity funds covering Asia, Latin America, Europe, Africa, and the Islamic countries that span the globe from North Africa through the Middle East and into Asia. These funds represent aggregate capital commitments of nearly $6.0 billion and several are the largest of their kind in their particular region.
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