TimesLeader.com

Secret Service investigating Kingston company

Wright Twp. police chief said title company failed to give home seller proceeds.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter

The U.S. Secret Service is investigating a Kingston title company for allegedly failing to give a home seller the $227,800 paid by the buyer, according to Wright Township Police Chief Joe Jacob.

click image to enlarge

Priority Search Inc., on Pierce Street, Kingston, is the subject of a U.S. Secret Service investigation, Wright Township police said.

AIMEE DILGER/THE TIMES LEADER

Select images available for purchase in the
Times Leader Photo Store

The home seller – former Luzerne County commissioner contender Bill Jones – said he approached township police because the title company, Priority Search Inc., received the money from the buyers at the Oct. 17 closing but has not turned it over as required.

Title companies are supposed to put the purchase funds into an escrow account and make sure the money is properly disbursed to the seller and, if applicable, banks that hold the seller’s original mortgage. The buyers chose the title company, Jones said.

Jones said $171,317 from the purchase was supposed to go to a bank to pay off his home equity loan on the sold Washington Boulevard house, and the remaining $56,500 was to come to him.

He said he was shocked when his bank sent a notice saying the transfer of funds had been halted soon after the closing. His wife, Karen, contacted Priority Search Inc. and was informed by a company representative that the checks were “lost” and that new ones would be resubmitted.

Jones’ lawyer – John Dean of Scranton – said checks from Priority Search Inc. bounced twice.

Jones said he has tried to contact Priority Search in recent weeks, but a voice mail picks up.

Elizabeth Sichler, the president of Priority Search according to state corporation records, could not be reached for comment by cell phone or through the business. Sichler is vice chairwoman of the Luzerne County Republican Party organization.

A “sorry we’re closed” sign was on the businesses front door Thursday afternoon. The building is also up for sale.

Police Chief Jacob said he spoke to a Priority Search representative as part of his investigation and was instructed to speak to Marc Neff, a criminal defense attorney from Philadelphia. Neff could not be reached for comment Thursday.

Jacob said he transferred the matter to the county District Attorney’s Office, which then forwarded it to the Secret Service. Jacob said he forwarded his files to the Secret Service and will assist if requested.

Since Jones reported the non-payment to police, a property seller from North Carolina has also contacted township police, alleging Priority Search failed to turn over $32,000 that had been paid by the buyer of his property, Jacob said. Jacob said the North Carolina man said he was aware of two other cases in which property sellers are owed money by Priority Search, but Jacob said he did not have documentation on those cases.

Jacob urged any property sellers who are owed money by Priority Search to contact the police department in the municipality of the property that was sold. All cases should be reported to the Secret Service, he said.

Dean filed a county court action on Jones’ behalf Wednesday seeking to rescind the property sale and eject the buyers – Russell and Susan Michel. Jones said the Michels have already moved into the house. They could not be reached for comment.

Dean said the action is necessary because Jones has not been paid.

The court action was also filed against Priority Search and three people involved in the company – Sichler, Melissa Mendygral and Robert E. Marsh Jr. Marsh is listed as the company’s secretary and vice president in state corporation records. Marsh and Mendygral could not be reached for comment Thursday.

“I just hope to get Bill where he needs to be as quick as possible, which is in a new house after receiving payment for the old one,” Dean said.

Jones said he obtained the home equity loan on his old house to buy land and start construction of a new house in Rice Township.

“I had to put off the closing of my new house because we don’t have the money to close,” Jones said. “I work hard to make things better for my family, and now I have to worry about this. I feel sick to my stomach.”

“You feel sorry for the people who bought the house too. They’re caught in the middle just like I am. I don’t want to see them lose the house, but I have to be paid,” Jones said.

The Secret Service referred calls to Bob Slama, special agent in charge of the agency’s Philadelphia district. Slama could not be reached for comment Thursday.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.