Allegedly Took $1.8 Million From Escrow Company : Businessman Pleads Not Guilty to Wire Fraud

A businessman who fled to Singapore after allegedly defrauding an Orange County escrow company of about $1.8 million, pleaded not guilty in federal court Monday to 23 counts of wire fraud.

James Leroy Fletcher, 41, formerly of Fort Lauderdale, Fla., spent several weeks in a Singapore jail before federal marshals arrived to escort him back to Los Angeles late last week. Fletcher’s extradition marks the first time a criminal defendant has been extradited from the Republic of Singapore, according to Assistant U.S. Atty. Anita H. Dymant.

Fletcher and Marjorie G. Knox of Redondo Beach were charged in a federal indictment with selling an investment program backed by phony stock guarantees through a company called American Century Mortgage Corp.

Knox, who has not yet entered a plea, was working as an escrow officer at Western Mutual Escrow Corp. in Santa Ana when Fletcher set up escrow accounts to handle money paid to him by investors.

In 1983, Knox allegedly began funneling money to Fletcher through escrows she supervised at Western Mutual. When the first investors were due to receive payments, Fletcher deposited $1.3 million in a Western Mutual escrow account.

Indictment’s Allegations

But instead of paying investors, Knox surreptitiously returned the money to Fletcher, the indictment alleges.

Soon after his checks began to bounce, Fletcher fled the country, according to the indictment.

Western Mutual, which since has changed owners and moved to Newport Beach, was forced to pay off the investors and absorb a $1.8-million loss, according to Dymant.

Fletcher also pleaded not guilty Monday to counts of wire fraud charges for allegedly defrauding a San Pedro realtor out of $150,000.

In that case, Fletcher posed as a wealthy businessman and promised to secure a multimillion-dollar loan for a real estate development. He took the money without attempting to obtain the promised loan, according to the indictment.