ASHEVILLE– U.S. District Judge Martin Reidinger sentenced Ginger Lynn Cunningham, 39, formerly of Hendersonville and currently living in Brevard, to 14 months in prison for selling fake title insurance plan, announced Andrew Murray, U.S. attorney for the Western District of North Carolina.
Cunningham was likewise bought to serve 3 years under court guidance and to pay $412,344 as restitution.
According to info included in submitted court files and provided in court during Cunningham’s sentencing hearing, Cunningham owned and operated Blue Ridge Title Business, an independent title insurance coverage company located in Buncombe County.
Beginning in February 2015, Cunningham became an authorized independent agent for Commonwealth Land Title Insurance Company. As an authorized representative, Cunningham’s title company offered title insurance coverage underwritten by Commonwealth and collected premium payments throughout realty closings.
Under the arrangement with Commonwealth, Cunningham’s Blue Ridge Title Company would keep 80% of the premium payments, and the staying 20% would be sent out to Commonwealth, the U.S. Attorney’s Workplace said in a press release.
On or about March 21, 2016, Commonwealth ended their arrangement with Blue Ridge Title Business due to the fact that Cunningham stopped working to submit premium payments as needed to Commonwealth.
At the time of termination, Blue Ridge Title Business owed Commonwealth in excess of $25,000 in superior payments, according to the release.
According to court files, from March 2016 until October 2017, Cunningham continued to represent herself and Blue Ridge Title Company to be an independent agent of Commonwealth, despite knowing that she no longer had any relationship with Commonwealth, and continued to sell fictitious title insurance plan and gather premium payments.
Purchasers of the phony title insurance coverage did not understand that they were not financed by any insurance coverage supplier, and therefore had no value.
Court records reveal Cunningham further tricked her clients by drafting official-looking, however fictitious, policy files that bore the name of Commonwealth Land Title Insurer and produced policy numbers. Cunningham kept 100% of the premium payments connected with these worthless policy sales.
As court records show, throughout the appropriate period, Cunningham sold at least 973 fake title insurance policies and received at least $412,344 in premiums for the fake policies.
On Oct. 28, 2019, Cunningham pleaded guilty to wire scams.
Assistant United States Attorney Don Gast, of the U.S. Lawyer’s Workplace in Asheville, prosecuted the case for the United States.Source: blueridgenow.com