Escrow Fraud Sentencing in Tennessee

Rachel Dollar —  April 18, 2016 — Leave a comment

Garry Christopher Forsythe, 42, Hendersonville, Tennessee, was sentenced to 33 months in prison to be followed by two years of supervised release and ordered to pay $2,249,294.80 in restitution and to forfeit the proceeds of his crime.

Forysthe pleaded guilty to one count of wire fraud in December 2015 in connection with a scheme involving escrow funds held by his real estate closing company, Forsythe Title and Escrow. During the sentencing hearing, evidence established that the company’s escrow accounts developed shortages of more than $2.2 million because Forsythe made inflated or unsupported transfers of funds from the escrow accounts to the company’s operating accounts. Testimony during the hearing also established that, contrary to Forsythe’s position, the escrow shortages were not inadvertently caused by the failure to deposit checks or by bank errors. The evidence demonstrated that, in one instance, funds were transferred from an escrow account at Forsythe Title & Escrow and used for the down payment on a boat purchased by Forsythe.  Evidence also demonstrated that the escrow shortages resulted in bounced checks, delays in scheduled real estate closings, and instances in which borrowers were left with two mortgages because Forsythe Title & Escrow failed to pay financial institutions with funds that had been provided for that purpose.

U.S. District Court Judge Aleta A. Trauger imposed the sentence and it was announced by David Rivera, U.S. Attorney for the Middle District of Tennessee.  The case was investigated by the FBI and the IRS-Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys William F. Abely and Cecil W. VanDevender.

Be Sociable, Share!

Rachel Dollar

Posts Google+

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong> 

*