New Orleans Title Agent receives three years

United States District Judge Eldon Fallon on Thursday, January 14th sentenced Hubert Ellzey Jr. to three years in federal prison with three years of probation and an order to pay restitution to Commonwealth.

Mr. Ellzey Jr. was found guilty of wire fraud back on September 23 of 2009. His wire fraud scheme actually came to an end when Hurricane Katrina hit.  Hurricane Katrina actually assisted the citizen of New Orleans in the halt of Ellzey’s seven hundred seventy seven thousand dollar wire scheme.

Mr. Ellzey Jr., age 68, used his title company in Metairie to convert borrower’s money proceeds for his own personal use and then he covered up his scheme by misappropriating funds from future mortgage payments.

Mr. Ellzey Jr. was an independent title agent working in New Orleans for Commonwealth Land Title Insurance Co. The role of his position was to use his existing escrow account to wire transfers funds between financial institutions as funds were granted and mortgage loans were paid off.

Mr. Ellzey Jr. deviated from his usual up standing practices sometime in June of 2005. According to records that is when he began transferring monies into his personal accounts. He covered his tracks by later mortgage payment funds that were coming into the escrow account. His scheme involved at least six property closings in Avondale, Gretna, New Orleans, and Metairie. The lenders that were defrauded by Mr. Ellzey Jr. are located in Georgia, Illinois, New York and Texas.

Hurricane Katrina ended Mr. Ellzey Jr.’s scheme of wire fraud by cause and effect. He was unable to cover funds he put in his personal accounts when all closings came to a complete halted caused by the Hurricane. According to the United States Attorney Office Mr. Ellzey Jr. was unable to cover the amounts of the pending mortgages.

The case was prosecuted by United States Attorney Juan Masini and was investigated by the Federal Bureau of Investigation.