A former branch manager of a Fulton company was sentenced in federal court this week for a $576,000 mortgage fraud and embezzlement scheme, according to a press release from Tammy Dickinson, United States Attorney for the Western District of Missouri.
Terrie Lynn Johnson, 50, of Columbia, was sentenced to two years and six months in federal prison, without parole, for fraud and embezzlement at the title company where she was employed. Johnson also has to pay $405,653 in restitution, per court orders.
Johnson pleaded guilty to bank fraud and money laundering in July 2013. Furthermore, she admitted that she participated in a $300,000 mortgage fraud scheme while she worked with Landchoice as a branch manager of its Fulton office.
Since pleading guilty in 2013, Johnson's public defender, on her behalf, filed two motions that postponed sentencing, according to court documents.
The first was a motion for an extension in the amount of time Johnson could submit objections to the presentence investigation report. The extension was granted to allow Johnson and her legal counsel "additional time to review the (presentence investigation) report in order to insure the greatest possible accuracy," according to court documents.
The second was a motion to delay sentencing from June 2014 until some time after October 2014 so that Johnson could finish a class for her master's degree. Court documents stated that the class she was taking was to end in October 2014 and further stated that "if she does not complete the program now, she would have to re-apply for admission to the program, and the course requirements might change." The government representative in the case did not oppose either motion.
Johnson was hired for a clerical position at Guaranty Land Title Company in 2001. She was later promoted to branch manager of the Fulton office and, according to a press release, the company was acquired by Landchoice Company, LLC. The release stated that she maintained that position until her employment was terminated in December 2008.
According to a press release, Johnson refinanced the mortgage on her home two times, providing false and fraudulent information when she did so. Two banks approved her mortgage loans for $175,000 in 2007 and $125,000 in 2008. The combination of the two loans exceeded the appraised value of Johnson's home, according to the press release.
Johnson admitted to embezzling $276,173 from Landchoice while she was employed by them. She diverted income checks from the company into a bank account that had been opened for Guaranty Land Title Company - a bank account her employer didn't know existed, according to the press release. And, she placed money from Landchoice escrow funds for loan closings into that same account.
Johnson wrote herself checks from that account totaling about $59,465, payable to herself or to cash, according to the press release. She also wrote checks to her personal business, Johnson Gardens, totaling about $12,500 and checks believed to be for her personal use totaling about $19,916. And, in addition to those personal checks, Johnson used the accounts debit card for personal use as well. The press release stated that, "The total personal benefit realized by Johnson from this embezzlement scheme is estimated to be approximately $276,173."
Supervisory Assistant U.S. Attorney Lawrence E. Miller prosecuted Johnson's case. The FBI, IRS-Criminal Investigation, the Missouri Department of Insurance, Missouri State Highway Patrol and Fulton Police Department all investigated the case.