Louisiana Man Gets 30 Months in Title Fraud Scheme

DALLAS – Leonard James McMorris, 50, of Rayville, Louisiana, will spend the next 30 months in federal prison after being sentenced today for his central role in a brazen wire fraud conspiracy. Chief U.S. District Judge Barbara M. G. Lynn also ordered McMorris to pay a hefty $1,417,903 in restitution to the victims of the scheme, a five-year operation that drained funds from a legitimate title insurance company.

The sentencing comes nearly seven years after McMorris and his accomplice, Constance Marie Kelly, 53, were indicted in February 2009. While McMorris was finally apprehended in the Western District of Louisiana in August 2015 and has been held in custody ever since, Kelly remains at large – a fugitive from justice. U.S. Attorney John Parker of the Northern District of Texas announced the sentence, a long-awaited conclusion to a complex financial crime.

Court documents reveal the conspiracy stretched from approximately 2002 to 2007. Kelly, at the time, was employed by LandAmerica American Title Company (American Title), a title insurance agent handling real estate closings. Her position granted her access to the company’s escrow account at Compass Bank – access she abused in collaboration with McMorris. The pair systematically siphoned funds, masking the illegal transfers with deceptive tactics.

Between 2006 and 2007, McMorris established a network of business bank accounts across Texas, opening accounts at Bank of America, N.A., Bank One, N.A., Bank of Texas, N.A., and Compass Bank. Kelly then exploited her position, issuing at least 11 checks and 51 wire transfers totaling $1,417,904 from the American Title escrow account into these McMorris-controlled accounts. She actively concealed these unauthorized transfers from her employer, perpetuating the fraud for years.

The Dallas FBI led the investigation, painstakingly unraveling the complex web of transactions and ultimately bringing McMorris to justice. Assistant U.S. Attorney David Jarvis spearheaded the prosecution, building a case that secured the conviction and subsequent sentencing. The search for Kelly continues, with federal authorities urging anyone with information regarding her whereabouts to come forward.

This case serves as a stark reminder of the devastating impact of white-collar crime. While lacking the immediate physical violence of other offenses, schemes like this erode trust in financial institutions and leave victims struggling to recover significant losses. The Grimy Times will continue to follow the pursuit of Constance Marie Kelly and report on any further developments in this case.

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