Owner of real estate transaction company admits to fraud

COVINGTON, KY (FOX19) - The owner of a real estate transaction company in Bellevue, Ky., had admitted to defrauding financial institutions out of hundreds of thousands of dollars, according to the U.S. Attorney's Office and the U.S. Secret Service.

Jennifer Groneck, 47, of Fort Thomas pleaded guilty Thursday to one wire fraud count.

Groneck acknowledged that she stole a combined $645,904.27 from various banks and a mortgage lender.

Officials say Groneck coordinated real estate transactions on behalf of the buyer, seller, mortgage lender and real estate agents. After a house was sold, her company was responsible for disbursing all the money collected at settlement and to pay off the existing mortgages on the property, thus clearing the property title for new buyers.

However, instead of paying off a seller's mortgage as she was obligated to do, she stole the money that was wired to her from the buyer's bank and used it to pay off mortgages on other properties that she had not paid due to her scheme to defraud.

Groneck will appear in U.S. District Court in Covington for sentencing on May 3, 2012. She faces a maximum prison sentence of 20 years.

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