Guaranty Title co-owner pleads guilty to wire fraud

One of the owners of Guaranty Title Co. pleaded guilty Tuesday in federal court to wire fraud conspiracy and money laundering.

Rick Burton pleaded guilty to his part in the $2.7 million fraud as president and majority owner of the Nixa-based real estate title and closing company, including a series of illegal transfers related to stolen escrow payments and a "substantial check-kiting scheme," according to a news release from the U.S. Attorney for the Western District of Missouri.

Burton admitted that his company took money given to the company for closing costs, which was supposed to be kept in escrow accounts separate from company funds. The money was recorded as loans, the release said.

By April 2007, deposits into Guaranty's main escrow account no longer covered the shortages caused by the thefts, the release said. At that point, Burton helped to conceal the shortage by having the company write and deposit checks between various accounts at Great Southern Bank and Ozark Mountain Bank. Neither bank had accounts with enough money to cover the checks. Ozark Mountain Bank, which discovered the fraud and closed Guaranty's account, lost nearly $700,000 as a result, according to the release, though it's unclear how much Great Southern lost as a result of the scheme.

Under federal statute, Burton faces up to 40 years in federal prison without parole, plus fines of up to $1.25 million and an order of restitution. Sentencing will be scheduled after a presentence investigation.

According to previous Springfield Business Journal coverage, Burton co-owned the company with Kathy Cyrena Allen, also known as Kathy Stanton. The two were indicted in November in federal court; Allen's case is pending.[[In-content Ad]]