In the following press release Ohio Department of Insurance Director Mary Jo Hudson has announced that on Friday, October 23, 2009, former Granville title agent Karen Axline was sentenced in the Franklin County Court of Common Pleas to four years in prison for her role in a mortgage scam.  Ms. Axline pled guilty to ten felony counts of theft, falsification and money laundering on August 11, 2009.

A Department investigation revealed that from February 2006 to May 2007, Ms. Axline knowingly participated in a scheme to defraud mortgage lenders in several real estate transactions.  She presented bogus documents including invoices for home improvements on residences.  The home improvements were the basis for inflated appraisals that resulted in mortgage loans that were in excess of the actual real estate value.  None of the improvements were done and the funds that were generated were split among the participants. 

Ms. Axline agreed to the suspension of her insurance license on May 7, 2009.  She also agreed to the revocation of her license if she pled guilty to any counts on the indictment.  The license of Ms. Axline’s business, Granville Title Agency, was surrendered on May 7, 2009.

Ohioans who believe they have witnessed insurance fraud or misconduct should call the Department’s Fraud hotline, 1-800-686-1527.  Information about fraud and misconduct can be found on the Department’s web site, www.insurance.ohio.gov.