COLUMBUS – Ohio Lieutenant Governor and Insurance Director Mary Taylor announced that Gregory R. Klima, of Avon Lake and the co-owner of Title Access, LLC, was sentenced in the Lorain County Court of Common Pleas today to 18 months incarceration and three years of probation for his role in diverting $290,484.00 from an escrow account for personal use. His business partner Timothy R. Grodzik, of Columbia Station, was sentenced on Nov. 12 to 15 months in prison and three years of probation. They have been ordered to pay full restitution.
“The individuals found guilty in this case repeatedly broke the law and stole nearly $300,000" Taylor said. “Fortunately their fraudulent scheme has been brought to an end and the two have been brought to justice thanks to the work of the Department and the investigative team.”
The investigative team of the Ohio Department of Insurance, Northern District of Ohio U.S. Attorney’s Office and the FBI determined that Klima and Grodzik defrauded a title insurance company and a total of 27 parties to real estate transactions by diverting funds from Title Access’ escrow account between December 2009 and February 2011. Documents were falsified to conceal from the title insurance company auditor that they diverted funds for their personal benefit.
If you believe someone may be committing insurance fraud, the Department urges people to call its fraud hotline at 1-800-686-1527. Insurance fraud information is available at www.insurance.ohio.gov.