Robert L. Flath, 41, mortgage loan officer, Gig Harbor, Washington was charged with one-count of first-degree theft in connection with accusations that he stole a check intended to pay for brokerage fees. Flath entered a plea of not guilty during his arraignment.
The charge carries a maximum penalty of 10 years in prison and a $20,000 fine. The charge was brought by the Washington Attorney General’s Criminal Division Financial Crimes Unit at the request of the Washington State Department of Financial Institutions.
The Attorney General’s Office alleges that Flath was a branch manager at American Residential Funding's Tacoma office in 2003 when an escrow company mistakenly delivered a check for brokerage fees in the amount of $7,842.50. Flath received the check and deposited it into his account. The escrow company later discovered that the check should have been sent to another mortgage company and requested Flath return the funds, but he refused.
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.