NORFOLK, Va. — In a shocking case of betrayal, Tammy A. Cheek, the former president of Preferred Escrow and Title, Inc., was sentenced to 18 months in prison for misappropriating $715,000 of closing funds in connection with 48 real estate transactions.
According to court documents, Cheek, 58, of Virginia Beach, was a licensed title and settlement agent who served as the president, secretary, and treasurer of her company. Between January 2018 and approximately February 2018, she misappropriated $715,000 of closing funds that had been deposited by various lenders and individual buyers into the company’s escrow account.
Cheek made seven unauthorized wire transfers of funds from the escrow account to certain entities at the request of a person with whom she had an online personal relationship. During this period, she partially replenished the funds that she had misappropriated by depositing approximately $199,000 of her own money into the escrow account, resulting in a remaining shortage of approximately $516,000.
As a result, all 48 closings were affected. Among others, losses were sustained by sellers, buyers, business entities, financial institutions, various lienholders, municipal clerks of court and treasurer offices, and a title insurance company.
The case was announced after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
Cheek’s crimes led to a significant financial loss for many individuals and businesses. The case serves as a reminder of the importance of trust and accountability in the real estate industry.
Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-2.
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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