Dewey Beach Buyer Sues Over $2.2M Wire Fraud in Closing
WDEL | February 16, 2026 | Matthew Pencek | COAST TV
A woman who was purchasing property in Dewey Beach has filed a federal lawsuit after more than $2.2 million in closing funds were diverted through what court records describe as a fraudulent email scheme.
Johanna Berkowitz filed the complaint Jan. 29 in the U.S. District Court for the District of Delaware against John Doe Nos. 1–100, seeking to identify the people responsible and recover $2,209,240.11 that was wired to a bank account controlled by fraudsters.
According to the complaint, Berkowitz was under contract to buy real estate in Dewey Beach for $2.2 million, with closing scheduled for Nov. 21, 2025. On Nov. 17, 2025, she confirmed the final amount required to close as $2,209,240.11 with her real estate agent and brokerage, Charles Schwab.
On Nov. 19, 2025, Berkowitz received a settlement statement listing the same amount due. That same day, she received what the lawsuit describes as a spoofed email from title.closer.office@nullgmail.com, purporting to be from a real estate coordinator at the law firm representing her in the transaction.
The email provided wire instructions directing the closing funds to a Truist Bank account allegedly controlled by fraudsters.
Berkowitz’s brokerage, Schwab, processed the outgoing wire transfer Nov. 19, 2025, and confirmed the transfer of $2,209,240.11, the complaint states. Truist Bank later confirmed receipt of the funds into the account identified in the email.
According to the lawsuit, Truist reported that the funds were immediately withdrawn or redirected elsewhere.
The complaint alleges that unknown individuals gained unauthorized access to email communications or related systems involved in the closing process, allowing them to divert the money. Berkowitz claims the fraud involved access to “protected computer(s)” used in interstate commerce.
The lawsuit asserts violations of the Computer Fraud and Abuse Act, the Stored Communications Act and the Electronic Communications Privacy Act. It also includes state law claims for conversion, trespass to chattels and unjust enrichment.
Berkowitz is seeking damages of no less than $2,209,240.11, along with punitive damages, attorneys’ fees, interest and injunctive relief. She is also asking the court to order the forfeiture of any property used to carry out the alleged scheme and to require the return of any stolen data.
Court records show preservation demands were issued to financial institutions and others involved in the closing beginning Nov. 26, 2025, and continued Dec. 3, 2025, as part of efforts to identify those responsible through banking records and IP logs.
Why Title Insurance Matters in the U.S.: UK Homeowner Declared “Dead” and Lost His House
ALTA website | February 17, 2026 | Contact ALTA at 202-296-3671 or communications@nullalto.org
A recent case out of the United Kingdom highlights just how vulnerable homeowners can be when fraudsters exploit weaknesses in property systems. In a complex case in Brentford, west London, 74-year-old Stanislaw Sokolowski returned home one day in early 2023 to find strangers removing his belongings. He shockingly discovered official records listed him as deceased and his home had been transferred to a fraudster.
According to reporting on the case, someone falsely claimed to be the executor of a deceased man with a similar name. Using forged probate documents and a fake will, the fraudster convinced the Land Registry to record a transfer of Sokolowski’s title. That allowed the property to be sold to a third party and financed with a mortgage. All without the real homeowner’s knowledge. A judge ultimately ruled in Sokolowski’s favor after a three-year legal battle and ordered the title restored, but the ordeal cost him more than $205,000 (£150,000) and his personal belongings were never recovered. In the U.S., a study found that 28% of title companies experienced at least one seller impersonation incident in 2023.
The Sokolowski case exemplifies what experts call probate and title fraud. This occurs when criminals forge documents or impersonate owners to wrongfully obtain property or financial benefits. While the specifics involve the UK’s Land Registry and probate system, the underlying risks are universal. If a title system lacks robust verification, forged instruments can be used to disrupt ownership and strip value from legitimate owners.
In the United States, the real estate and title insurance system includes critical countermeasures designed to help prevent exactly these kinds of fraudulent transfers and to protect consumers when fraud does occur. Unlike the U.S., where title insurance is almost always required, the UK system relies heavily on the Land Registry, making title insurance less common.
How Title Insurance Protects Against Fraud and Forgery in the U.S.
In U.S. real estate transactions, title insurance serves as a financial and legal safeguard that goes beyond traditional homeowner or lender protections. Here are four reasons why:
1. Comprehensive Title Search and Examination
Before a policy is issued, title professionals thoroughly search public records to identify existing liens, claims, encumbrances or irregularities that could affect ownership. This process is designed to reveal forged deeds, fraudulent transfers or hidden defects before a transaction closes.
2. Forgery and Fraud Coverage
Both the ALTA Owner’s Policy and ATLA Homeowner’s Policy cover buyers who fall victim to pre-purchase forgery. The ALTA Homeowner’s Policy also protects against a third party who fraudulently transfers the owner’s property in the future. For companies in the 46 states where regulators have approved these enhanced policies, 42% of customers, on average, chose policies that protect their property from forgery, including seller impersonation fraud, in the future. In 2023, 16% of title companies paid claims on transactions involving seller impersonation fraud.
3. Post-policy Protection
The title industry also developed two new policy endorsements that provide post-policy protection and build upon ALTA’s landmark Homeowner’s Policy of Title Insurance. The ALTA 49 Endorsement is designed to address the situation where the homeowner is purchasing an ALTA Owner’s Policy and would like post-policy coverage for deed or mortgage forgery, but where the ALTA Homeowner’s Policy is either not available, or is not offered to the homeowner. In addition, the ALTA 49.1 Endorsement is designed to address the situation where the homeowner has previously purchased an ALTA Owner’s Policy and would like future coverage for deed or mortgage forgery. These endorsements set the standards for forgery protection before and after closing.
4. Fraud-prevention Infrastructure
Title companies invest in identity verification, secure document handling, transaction monitoring and human review. These are all layers of defense that mitigate risk. Unlike automated or paper-only systems, this multi-layered approach makes it harder for criminals to manipulate records or impersonate owners. Also, many companies and county recorder offices in the U.S. provide property alert notifications that inform homeowners when any document is filed pertaining to their property.
Why It Matters for Homeowners and Lenders
Fraud and forgery are not just abstract risks. Data shows they can lead to substantial losses that exceed hundreds of thousands of dollars, particularly in refinance scenarios. The average cost for fraud and forgery claims is almost seven times higher than all other claim types from refinance transactions. Title insurance ensures that if fraud slips through initial defenses, the financial burden doesn’t fall on the innocent homeowner or the lending institution.
The UK case underscores the emotional and financial fallout when protections are insufficient. Unlike the U.S., where title insurance is almost always required, the UK system relies heavily on the Land Registry, making title insurance less common. In the U.S., title professionals examining title and title insurance play a vital role in preventing fraud, safeguarding homeownership and maintaining confidence in the housing market. For homeowners and lenders alike, that protection is not just a policy. It’s peace of mind.
ALTA provides several resources to educate industry professionals and consumers on how to spot warning signs—such as remote sellers, rushed closings, or inconsistent records—and how to verify ownership before proceeding with a transaction.
- Video: This video highlights red flags to spot seller impersonation fraud.
- Infographic: This handout highlights tips for consumers to protect themselves from seller impersonation and the different title insurance coverage options.
- Infographic: This handout provides tips to help verify and check state identification cards during an in-person notarization.
Two Michigan insurance providers suspended for mismanaging millions, failing to comply with audits
By Jack Nissen | Published July 21, 2025 11:59am EDT | Crime and Public Safety | FOX 2 Detroit
The Brief
- Two Michigan-based title insurance agencies have been suspended from working in Michigan amid allegations of millions of mismanaged funds.
- Rand Sre and Tobby Jablonski, both working out of Farmington Hills, ignored audit requests as concerns of abnormal transactions piled up.
- The state is looking for anyone else that believes they were affected by the business practices.
(FOX 2) – Millions in mismanaged funds, at least one foreclosure, and failures to cooperate with audits and a state investigation are among the allegations against two insurance agents based in Oakland County.
As a result, the state has since taken action against Peak Title of Michigan, Peak Title Agency, and the individuals who ran them.
Big picture view:
Two Michigan insurance agents have had their licenses suspended amid allegations they mismanaged millions of dollars housed in escrow funds while refusing to cooperate with investigation and audit requests.
At least one individual foreclosed on their home because payments did not clear.
Rand Sre and Tobby Rae Jablonski, both designated responsible licensed producers for respective insurance providers in Michigan, have been barred from doing business in Michigan for “intentionally or negligently misappropriating funds,” according to the state.
A notice from the Department of Insurance and Financial Services (DIFS) alleges both individuals and the businesses they ran failed to use best practices and accounting methods, which poses an “imminent threat of harm.”
Unless their licenses were suspended, more people could be harmed because of “incompetence, untrustworthiness, and diversion of insurance funds.”
The backstory:
Contained in DIFS’ July notice is a rundown of various issues other parties have encountered while working with both Sre and Jablonski.
Sre runs Peak Title of Michigan Inc. while Jablonski runs Peak Title Agency Co., which are both based out of the same address in Farmington Hills, according to the state’s database of insurance agencies listed in Michigan.
Issues were first reported on Dec. 6 when appointments between an insurance title company and both Sre and Jablonski were canceled because neither cooperated with requests for an audit.
Then in March, Jablonski ignored a request from the state to conduct an audit – the first of multiple instances of refusing to cooperate with the state agency. Around April 22, another title insurance company learned of funds being improperly diverted from the business associated with Sre, who later sued him amid allegations they mismanaged $2.6 million in escrow funds.
Dig deeper:
While responding to an order from DIFS, Sre argued they could not comply with an order from the state because Jablonski had embezzled funds from the company run by Sre.
DIFS said Sre never told them of the alleged embezzlement.
In May, consumer complaints came in, with one arguing property taxes owed in 2023 and 2024 were never paid. The related ledger showed “multiple abnormalities,” including payments for utilities owed in December of 2024 not clearing until April of 2025.
Sre also collected premiums for an insurance policy without issuing the policy itself.
In a second complaint, Jablonski allegedly mismanaged $200,000 in escrow funds for a real estate transaction, forcing the owner to foreclose on their home.
Zoom Out:
A court-appointed receiver issued a report finding several issues with how both Sre and Jablonski had managed funds they were responsible for handling.
Among the largest abnormalities was a negative balance of $1.3 million that Sre could not reconcile.
The report also found Sre was aware that Jablonski was inappropriately wiring funds without documenting the transfers.
As a result, DIFS has suspended both individuals’ licenses amid concerns they “pose an imminent risk to the public’s health, safety, and welfare.”
What they’re saying:
DIFS director Anita Fox released a statement that if anyone had been affected by either individual, they should contact the department.
“Consumers should feel confident that their title agency is compliant with the law, maintains proper safeguards, and protects customers’ funds,” she said. “After conducting a thorough investigation, it was clear that immediate action against Peak Title of Michigan Inc. and Peak Title Agency Co. was necessary to ensure consumers are protected.”
“If you believe you have been affected, please call 877-999-6442 from Monday to Friday between 8 a.m. and 5 p.m., or visit the department’s website and complete a complaint form.”
The Source: A report from the Department of Insurance and Financial Services was cited for this report.