A Missouri woman pleaded guilty in federal court to charges of bank fraud and money laundering, said U.S. attorney Tammy Dickinson for the Western District of Missouri.
Terri Lynn Johnson’s plea was related to a $576,000 mortgage fraud and embezzlement scheme at the title company where she worked.
According to charges made in a December 2012 federal indictment, Johnson was hired for a clerical position with Guaranty Land Title Co. in 2001. When Guaranty Land Title was acquired by Landchoice Company LLC, Johnson was promoted to become the branch manager of the Fulton, Mo., office. She held this position until her termination on Dec. 4, 2008.
While she was branch manager, Johnson admitted to participating in a $300,000 mortgage fraud scheme. As part of the scam, Johnson refinanced the mortgage on her home two times.
Because of the inaccurate information provided by Johnson on her loan applications, two banks approved mortgage loans for $175,000 and $125,000. Court documents revealed that both of these loans combined exceeded the appraised value of Johnson’s residence, which was used to secure both loans.
Additionally, Johnson admitted to embezzling more than $276,000 from Landchoice. During this scam, she diverted income checks from Landchoice into a bank account that had been used by Guaranty Land Title Co. that nobody knew existed. Also, Johnson diverted escrow funds obtained by Landchoice for loan closings into this account.
Next, Johnson wrote checks to herself that she deposited in her personal checking account for $59,465. More checks were written to her personal business, Johnson Gardens, which totaled $12,500, as well as checks for her personal use that went for $19,916. In addition, court documents said Johnson utilized a debit card issued for the account that she used to access $184,292.
Overall, the total personal benefit that resulted from Johnson’s embezzlement scheme is estimated to be $276,173.
Under federal statues, Johnson could face a sentencing of up to 40 years in federal prison without parole, plus a fine and an order of restitution.
