Title company audit close to done [The Daily Times, Farmington, N.M.]

Feb. 16--FARMINGTON -- Auditors could wrap up their investigation into missing funds at New Mexico Title Co. within days, officials said Wednesday.

State and private insurance investigators continue to scan and examine documents that will help them unravel what happened at the business.

When the New Mexico Division of Insurance and First American Title Insurance complete their investigation, Farmington police will determine if charges are warranted.

The initial investigation suggests millions of dollars are missing, said Sgt. Brandon Lane of the Farmington Police Department.

"Based on what's reported to us, it's in the millions," he said.

The business closed Jan. 30, when it abruptly stopped accepting title work and sent employees home.

Several customers have told The Daily Times money they paid into accounts was not properly credited, or that they did not receive expected disbursements from escrow accounts.

The location, 650 W. Main St., Suite C, houses two businesses. One is New Mexico Title Co., controlled through JJ Bond Investments Inc.

Chad Cox, who owns that business, said it is primarily a title company that offered limited escrow services used for real estate transactions.

The other business is New Mexico Title Escrow, which appears to be controlled by Golden Rule, a limited liability company associated with local businessman Bobby Willis. Willis has said money is missing from his business as well.

The businesses had some overlap, including

employees who had responsibilities on each side, Cox said.

The state Financial Institutions Division is investigating New Mexico Title Escrow.

Customers who believe they were victimized continue to come forward as the investigation stretches into its third week.

"We're still having people call in either with bills not being paid to businesses, or things like that," Lane said.

Police do not yet know how many people may have been victims. "Until we get the audit reports, we really don't know what's missing or who's affected," he said.

The insurance company's audit could be completed by the end of the week, said Arthur Bishop, a spokesman for the state Public Regulation Commission, which includes the Insurance Division.

Arturo Jaramillo, a Santa Fe attorney representing First American Title Insurance, based in Santa Ana, Calif., said investigators could finish scanning the relevant files within days.

"I'm sure the company is going to cooperate with the regulatory authorities," he said.

Jaramillo did not offer any estimate on the scope of funds missing, or the number of victims. "We'll just have to wait and see," he said.

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