News and Press Releases

Owner Of Metro East Title Company Pleads Guilty To Embezzling Funds From Clients And Structuring

January 31, 2014

Karen Strasser Steinke, 65, of Millstadt, Illinois, entered a plea of guilty in federal district court to an Information charging, in Count 1, Wire Fraud in a scheme to defraud clients of Metro East Title, and in Count 2, Structuring of Financial Transactions to Avoid Currency Transaction Reporting Requirements, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses carry a total statutory maximum sentence of up to 25 years in prison, three years of supervised release, a fine of up to $500,000 and mandatory restitution. Sentencing has been scheduled for May 2, 2014.

Court proceedings revealed that Strasser Steinke was an officer, owner and operator of Metro East Title Company. Operating as a title insurance agent, she received money on behalf of others, which included escrow, settlement and closing funds. Strasser Steinke was required to hold these funds as a fiduciary in a fiduciary trust account. On or about July 16, 2013, R. L. and M. L. purchased real property in St. Clair County, Illinois, and Metro East served as the settlement agent for the transaction. As part of the transaction, the proceeds paid were to be used to satisfy a mortgage against the real property for $76,864.98 held by Wells Fargo Home Mortgage. $84,109.57 of purchase funds were deposited into Metro East's escrow account, however the fiduciary funds were misused by Strasser Steinke. On or about August 7, 2013, Metro East served as a settlement and escrow agent pursuant to an escrow disbursement agreement in connection with a real property transaction between the Columbia American Legion, Columbia Post 581 District 22, American Legion Department of Illinois, which acted as the seller to the transaction, and the City of Columbia, the buyer. The City of Columbia deposited $407,960.04 into the escrow account of Metro East which was to serve as the source for the ultimate escrow and settlement disbursals however the fiduciary funds were misused by Strasser Steinke.

The successful prosecution is the result of an investigation conducted by the Internal Revenue Service with the assistance of the Columbia, IL, police department. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
















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