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Friday, June 22, 2012

$325,000 payment from Huntsville City to Weber School District missing

Home Abstract and Title Company president faces theft, obstructing justice charges

In today's Standard Examiner we read that $325,000 that was paid to Home Abstract Title Company for the purchase of the old Valley School Property last October never made it into the hands of Weber School District.

Here is the Scott Scwebke story in its entirety:

Home Abstract and Title Company president faces theft, obstructing justice charges

From the story, we read,

The president of Home Abstract and Title Company Inc. has been charged amid allegations that he kept about $325,000 that should have been given to Weber School District for its sale of property last year to the city of Huntsville.

Russell Charles Maughan, 58, is scheduled to make an initial appearance in 2nd District Court on July 11 for theft and obstructing justice, both felonies. The charges against Maughan follow an Ogden police investigation.

 The business, next door to the Weber County Attorney’s Office, was closed about a month ago by its underwriter, Old Republic National Title Insurance Company, based in Minneapolis, Tammy Greening, an examiner for the Utah Insurance Department, said Thursday. 
And further,
The state and police investigations stem from the Weber School District’s sale last year to Huntsville of about 6 acres of vacant land where a Huntsville school once stood. The property is between First and Second streets across from Huntsville Park.
Huntsville paid $325,000 to Home Abstract for the property in October 2011, which in turn was to provide the funds to Weber School District, said Jenna Holt, who is Huntsville’s attorney. The check cleared and Huntsville received the deed to the property, but Home Abstract reportedly didn’t provide the sale proceeds to the school district.
Jeff Stephens, superintendent of Weber School District, said the district’s business department unsuccessfully attempted to obtain the funds from Home Abstract.
“There were a series of misleading statements (about the status of the funds) from the president of Home Abstract that delayed our reporting it to police,” Stephens said, adding the district has had a lengthy relationship with Home Abstract.
The funds from the Huntsville school property sale were to be used by Weber School District to fund a capital project.
Stephens said: “We will do everything we can to protect taxpayer dollars.”
 It looks like White Collar crime so prevalent in other areas has hit Ogden Valley.

8 comments:

Smaatguy said...

Someone is apparently sleeping at the wheel over there at Weber School District....some heads should roll there as well...what's next, lose some of the $65 million bond money they are asking for?  Wasn't GF thier realtor.....

Laura said...

Add this to the ripoff by the guy that owns Lakeview Water of his customers to the tune of over $100,000 you can sure see that the state and county watchdogs are on the ball.Remember that on election night, it is time for a change.

Jim S said...

 The transaction was completed in October 2011 and the guys business was shut down in May?  Did the school district not know they were missing their $325,000 for 7 months?

Jim S. said...

 GF as in Gage Froerer?

Smaatguy said...

ding ding ding

Smaatguy said...

Sooo..... wheres the money? And why are some heads not rolling down at WSD?

Smaatguy said...

Title company owner arraigned on theft charges
By Tim GurristerStandard-Examiner staffWed, 07/11/2012 - 7:25pmCopyright 2012 Standard-Examiner. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
OGDEN — A title company owner charged with the theft of $325,000 in client funds is working toward a resolution of the charges, according to his defense attorney.“We’re trying to keep this as low profile as possible,” said Camille Neider, lawyer for Russell Charles Maughan. “We may have more to say later, but for now I’ll just say he’s really trying to fix things, to put everything back together.“We’re doing everything we can to make everyone whole.”Maughan, 58, is charged with theft and obstruction of justice regarding $325,000 his Home Abstract and Title Co. held for the Weber School District after the sale of district property to the city of Huntsville last fall.Maughan was arraigned Wednesday on the charges in 2nd District Court before Judge W. Brent West, but the case has been transferred to Judge Noel Hyde, who will set a date for a status conference.Maughan is acquainted with West, presenting a potential appearance of conflict of interest, Neider said. “He’s done so much business in the community that almost everyone knows him,” she said.The investigations stem from the school district’s sale last year to Huntsville of about 6 acres of vacant land where a Huntsville school once stood. The property is between First and Second streets across from Huntsville Park.Ogden police investigated when the school district never received the proceeds from the sale, Deputy Weber County Attorney Branden Miles said. The allegations are that Maughan misappropriated the money for his business and personal use. “He moved the money to an operating account and made use of it over a matter of months,” Miles saidMaughan’s Home Abstract and Title is a 104-year-old company housed in the Weber Building at 2380 Washington Blvd., Suite 200.The business, next door to the Weber County Attorney’s Office, was closed about a month ago by its underwriter, Old Republic National Title Insurance Company, based in Minneapolis, said Tammy Greening, an examiner for the Utah Insurance Department, which is also investigating Maughan.She said Old Republic officials notified the Utah Insurance Department, sparking the state investigation.

tiger said...

The check cleared and
Huntsville received the deed to the property, Best PPI
Claims Service