Throughout the history of modern title and escrow practices, Ohio has experienced several documented incidents involving escrow theft, mortgage‑fraud schemes, payoff errors, and cyber‑fraud. While most Ohio title companies operate ethically and professionally, these cases highlight why buyers and sellers should understand how closings work, what protections exist, and where the gaps are.
This article reviews verified Ohio cases in chronological order, explains how Closing Protection Coverage (CPC) works, and outlines practical steps consumers can take to ensure a safe closing.
2007 — Lemmon Title: Elder Fraud and Escrow Theft
In 2007, Donna Lemmon Perkins, owner of Lemmon & Associates Title Services in Newark and Granville, was indicted on multiple felony charges after investigators uncovered widespread escrow theft.
Key facts:
- More than $380,000 stolen
- Elderly victims targeted
- Mortgage payoffs not sent
- Closing proceeds diverted for personal use
At the time, Ohio had no Closing Protection Coverage (CPC) and no statutory protection for victims of escrow theft.
Why details are limited today
Because this case predates widespread digital court records, many documents — including sentencing details and prison‑time verification — are not available online.
To obtain the full case file
Licking County Clerk of Courts 75 E. Main Street, Newark, OH 43055 Phone: (740) 670‑5800 Website: https://www.lcounty.com/depts/clerk/
2008 — Equity Land Title: Largest Title Fraud in Ohio History
Sources:
https://law.justia.com/cases/ohio/second-district-court-of-appeals/2009/2009-ohio-7040.html
Steve Clayton, owner of Equity Land Title, was convicted in 2008 for orchestrating what the Ohio Department of Insurance called:
“The largest title‑insurance fraud case in Ohio history.”
Key facts:
- More than $1.5 million stolen from escrow
- Mortgage payoffs not made
- Dozens of homeowners left with active mortgages
- Lenders suffered major losses
- Fraud spanned multiple counties
Outcome:
- Clayton sentenced to 10 years in prison
- License permanently revoked
- Case triggered major escrow‑audit reforms
2011–2012 — Premiere Title / Coast to Coast Title: $7 Million Mortgage Fraud Scheme
Sources:
U.S. Department of Justice https://www.justice.gov/archive/usao/oh/news/2012/2012-03-29_kistner.html
https://www.justice.gov/usao-sdoh/pr/hilliard-couple-plead-guilty-7-million-mortgage-fraud-scheme
Deborah and Mark Kistner of Hilliard used their title companies — Premiere Title and Coast to Coast Title — to facilitate a $7 million mortgage‑fraud scheme.
Key facts:
- Dozens of properties involved
- Illegal cash‑back deals disguised as legitimate transactions
- Fabricated HUD‑1 settlement statements
- Inflated loan amounts
- Funds diverted to the Kistners
- Charges: bank fraud, wire fraud, money laundering
Outcome:
- Deborah Kistner sentenced to 5 years
- Mark Kistner sentenced to 3 years
- Millions in restitution ordered
2021 — Buckeye Title Agency, Inc. (Dayton/Beavercreek): Rassi v. Buckeye Title
Source: Ohio Court of Appeals https://www.supremecourt.ohio.gov/rod/docs/pdf/2/2021/2021-Ohio-2129.pdf
This case involved a title company operating in the Dayton/Beavercreek region.
What happened
- Title exam identified both a first mortgage and a HUD lien
- Payoff obtained for only the first mortgage
- HUD lien of $17,257.56 omitted from closing documents
Why the buyers could not recover damages
- Purchase contract required payment of the full payoff amount
- Buckeye’s mistake did not change that obligation
- Buyers declined title insurance
- No CPC was purchased
This case shows how title‑company errors can financially impact consumers, even without fraud.
2026 — Tandem Title Cyber‑Fraud: Hundreds of Thousands Lost Before Funds Reached Escrow
Sources:
https://www.wlwt.com/article/ohio-homeowners-thousands-fraud-scheme/70097278
In 2026, multiple Ohio homeowners lost hundreds of thousands of dollars in a sophisticated wire‑fraud scheme involving transactions handled by Tandem Title Agency.
What happened
According to WLWT/MSN reporting:
- Hackers infiltrated email communications during real‑estate closings
- Fraudulent wiring instructions were sent to buyers and sellers
- Victims unknowingly wired funds to criminal accounts
- Individual losses ranged from $40,000 to over $200,000
- Several victims were unable to close on replacement homes
The Wilke Lawsuit: Allegations Against Tandem Title
https://trellis.law/case/39061/a-2600038/susan-wilke-vs-tandem-title-agency-llc
In Wilke v. Tandem Title Agency, LLC, the plaintiff alleges:
- Failure to use secure communication systems
- Transmission of sensitive information via unencrypted email
- Failure to verify wiring instructions
- Breach of fiduciary duty
Tandem Title denies liability, asserting the fraud occurred outside its systems.
Federal Case: Fidelity National Title Insurance Company v. Tandem Title Agency, LLC
Filed January 19, 2026 U.S. District Court, Southern District of Ohio Case No. 1:26‑cv‑00053 Judge Jeffery P. Hopkins https://www.wlwt.com/article/ohio-homeowners-thousands-fraud-scheme/70097278
This lawsuit involves:
- A contract dispute between Fidelity National Title Insurance Company and Tandem Title
- Claims related to obligations under the agency agreement
- Issues classified under “Other Contract Actions”
It underscores that underwriters can and do take legal action when a title agency’s conduct jeopardizes consumers or violates contractual obligations.
Why CPC Did Not Apply in the Tandem Title Incidents
CPC ONLY protects funds after they reach the title company’s escrow account.
In the Tandem Title cases:
- The money was stolen before reaching escrow
- Therefore:
- ❌ CPC did not apply
- ❌ Title insurance did not apply
- ❌ The title company was not liable
Victims were left to pursue:
- Civil lawsuits
- FBI IC3 recovery attempts
- Bank fraud investigations
This case highlights the single biggest gap in Ohio closing protections.
RESPA: Your Legal Right to Choose Your Own Title Company
Under the Real Estate Settlement Procedures Act (RESPA):
Buyers and sellers ALWAYS have the right to choose their own title company.
No real‑estate agent, lender, or brokerage can:
- Require a specific title company
- Condition a transaction on using a particular title company
- Charge a penalty for choosing your own title company
Title company selection is negotiable in the purchase contract
In Ohio, the purchase contract can specify:
- Which party chooses the title company
- Whether both parties must agree
- How disputes over title‑company selection are resolved
The title company is not predetermined — it is a negotiated term between buyer and seller.
Closing costs are also negotiable
Ohio law does not mandate who pays:
- Title insurance premiums
- Settlement fees
- Title search fees
- Escrow/closing fees
- Recording fees
- Transfer taxes
These can be:
- Paid by the buyer
- Paid by the seller
- Split
- Or negotiated in any way the parties agree
The purchase contract controls the final allocation.
Many real estate brokerages — and individual brokers and agents — have Affiliated Business Arrangements (ABAs) with title companies.
Many real‑estate professionals in Ohio participate in ABAs — business relationships where a broker, agent, or brokerage has an ownership interest in a title company or receives a financial benefit from referring business.
RESPA requires:
- Full written disclosure
- A statement that the consumer is not required to use the affiliated title company
- No pressure or steering
Regardless of any ABA, buyers and sellers are always free to choose ANY title company they prefer, and the contract can reflect that choice.
How Buyers and Sellers Can Protect Themselves
1. Confirm the title company’s underwriter
CPC is only valid if the title company has an active underwriter. No underwriter = no CPC and no protection.
2.Consider Purchasing Closing Protection Coverage (CPC)
CPC protects against escrow theft, misused funds, and failure to follow written closing instructions — but only when an underwriter is active.
3. Protect yourself from wire fraud
- Never trust wiring instructions sent by email
- Call a verified phone number to confirm
- Use secure portals instead of unencrypted email threads
4. Confirm payoffs and recording after closing
- Verify your lender received the payoff
- Check county records to ensure the deed and mortgage release were recorded
5. Negotiate title company and fees in the contract
Both the title company and who pays which fees are fully negotiable between buyer and seller.
⭐ Why Ohio Broker Direct Is a Smart Choice for Ohio Sellers
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- Full MLS exposure
- Professional compliance oversight
- Transparent pricing
- No hidden fees
- Freedom to choose your own title company
- Guidance on CPC, wire‑fraud prevention, and safe closing practices
Ohio Broker Direct empowers sellers with control, transparency, and protection — without paying 6% commissions.
Conclusion
Ohio’s documented cases — from Lemmon Title to Equity Land Title, Premiere Title, Buckeye Title (Dayton), and Tandem Title — show that while most title companies operate professionally, mistakes, fraud, and cybercrime can occur, and consumers must take proactive steps to protect themselves.
If a title company has no underwriter, you have no CPC. If an underwriter terminates a title agency, CPC ends instantly. If cyber thieves intercept your funds before escrow, CPC does not protect you.
