Golden Valley Man Sentenced For Wire Fraud, Money Laundering

A Golden Valley man was sentenced to 24 months in prison Wednesday for taking mortgage title insurance proceeds.

Trent C. Jonas, 42, was charged on Nov. 22, 2010, with one count of wire fraud and one count of money laundering, according to the U.S. Attorney's Office in Minneapolis. He pleaded guilty on Dec. 30, 2010.

"In his plea agreement, Jonas admitted that from June 2005 through August 2007, he misappropriated more than $5.3 million that was intended to pay for title insurance premiums, title search costs and recording fees in connection with thousands of residential real estate mortgage financing transactions," according to a news release from Jeanne F. Cooney, U.S. Attorney's Office spokeswoman.

In addition to two years in prison, U.S. District Court Judge Ann D. Montgomery ordered Jonas to pay all of the $5.3 million in restitution.

Also according to Cooney's news release:

• Jonas owned and operated two title insurance agencies—Title Source, Ltd., and Zen Title.—which worked with title insurance underwriting company Ticor Title Insurance Co.
• Ticor is a subsidiary of Fidelity National Financial and United General Title Insurance Co.
• When a person gets a mortgage, they are required to pay the title insurance premiums in closing costs. That money goes to the closing agent, who makes the payments for title insurance premiums, title search and recording fees.
• Jonas' companies received payments for premiums, but Jonas admitted he used the money for other business and personal expenses.
• This defrauded the mortgage lender, the borrower and the title insurance underwriter, Ticor Title.
• Ticor Title issued title insurance policies for all homeowners whose premiums went unpaid; paid all of the recording fees, which total more approximately $2.3 million; and paid more than $1.8 million in expenses and losses on claims related to Jonas' companies' failure to issue policies and record documents.