Title Company Owner Charged With Stealing Funds

Allison Tussey —  March 20, 2009 — Leave a comment

Wavy Curtis Shain, 26, Louisville, Kentucky, has been charged with nine counts of wire fraud, and one count of bank fraud.

According to the allegations contained in the Information, Shain used businesses he owned and operated, Derby City Title and Capital Distribution, LLC, to perpetrate fraudulent schemes on various lending institutions and mortgage companies. The schemes perpetrated by Shain included misappropriating substantial amounts of loan proceeds received by him on behalf of borrowers using Derby City Title to obtain loans to purchase homes, and, by doing so, failing to pay off existing loans and mortgage held by the sellers of those houses. Additionally, Shain is charged with preparing false and fraudulent notes and mortgages purportedly associated with the purchase of houses and selling these instruments to willing buyers. Lastly, Shain is charged in the Information with perpetrating a check kiting scheme using business and personal accounts maintained with US Bank and BB&T Bank.

In the event of a conviction, the maximum potential penalties are 150 years imprisonment, a $3,250,000 fine, and supervised release for a period of 5 years.

Candace G. Hill, Acting United States Attorney for the Western District of Kentucky, made the announcement.

The case is being prosecuted by Assistant United States Attorney James R. Lesousky, Jr., and it was investigated by the Federal Bureau of Investigation and the Office of the Kentucky Attorney General, Consumer Protection Division.

Shain is scheduled to appear for arraignment on April 21, 2009, at 9:30 a.m., in United States District Court in Louisville, Kentucky.


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Allison Tussey

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