Miamian apprehended on 48 felony charges; accomplice a fugitive

A Miami man is facing more than 48 felony charges after surrendering to insurance fraud detectives with the Department of Financial Services investigating the theft of nearly $1 million in a 2002 mortgage transaction. The diversion led to foreclosure of a home and put a title company out of business. A second man wanted on similar charges is now considered a fugitive.

John S. Walters, 43, is charged with 52 separate counts of money laundering, organized scheme to defraud and first-degree grand theft, and potentially faces more than 700 years in prison if convicted on the charges. He was booked into the Miami-Dade County Jail, and bond is set at $1 million. Paul Allen Menzel, 49, is wanted on charges of organized scheme to defraud and first-degree grand theft.

Menzel, a former contract closer employed by Title Company of the South, allegedly diverted an escrow account check of more than $997,000 made out to Butler & Hosch, PA, an Orlando law firm. The check was intended to pay an outstanding mortgage loan for a home on Paloma Drive, but instead Menzel diverted the check to John Walters, the corporate representative of the property seller, A Auto Insurance.

Between December 2002 and February 2003, Walters opened a checking account at Ocean Bank in the name of Butler & Hosch Corp., Trust Account, and deposited the stolen check by forging the endorsement. Detectives said Walters bought a new car, paid personal debts, and had repairs made to his home. Menzel received more than $37,000 from the proceeds. As a result of the theft, the prior lender foreclosed on the new owner, and Title Co. of the South was put out of business.