A man from Pennsylvania has admitted to cheating a title insurance underwriter and his clients to support his sports betting addiction, resulting in millions of dollars in losses.
The United States Attorney’s Office for the Eastern District of Pennsylvania reports that Louis Belletieri, 43, pleaded guilty this week to two charges of wire fraud. Federal authorities claim that Belletieri orchestrated a scheme and deceived a title insurance underwriter along with clients of his Legacy Title firm in Allentown to support his online sports betting habit.
The Justice Department states that in November 2013, Belletieri’s Legacy Title signed a contract with Fidelity National Title Insurance that designated his firm as an agent for providing title insurance commitments, policies, and endorsements for properties in Pennsylvania. Legacy Title held an escrow account that collected deposits from mortgage borrowers of Fidelity.
"Defendant Belletieri should have maintained the funds in the escrow account for the purpose of conducting real estate transactions and disbursing funds as appropriate and for the purpose for which they were entrusted, such as to pay off mortgages, pay taxes, pay for title insurance, and pay for other expenses in connection with real estate transactions. In actuality, defendant Louis Belletieri used the money in the escrow account for personal reasons, including, among other things, to place online sports bets,” the federal complaint against Belletieri alleged.
Between March 2020 and September 2023, federal authorities contend that Belletieri diverted over $6.4 million from the escrow account into his personal accounts. Simultaneously, Belletieri faced allegations of diverting nearly $2.5 million from the Fidelity escrow account to his Legacy Title account, with a portion not being for valid business reasons.
Potential for Decades Behind Bars
The criminal case involving Belletieri commenced when over a dozen homeowners and mortgage borrowers approached Lehigh County District Attorney Gavin Holihan, alleging that their escrow funds were not being distributed. Holihan, who originally pursued and submitted charges against Belletieri, withdrew his case once federal prosecutors became involved.
Federal authorities report that Belletieri also obtained a fraudulent loan of $825K through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The complaint outlines that Belletieri undertook several measures to hide and obscure his deceptive operation, such as altering documents and utilizing freshly stolen funds to settle prior obligations.
Belletieri could receive a prison sentence of up to 40 years. He is scheduled to appear in court on September 12 for sentencing.
Belletieri Assumes Accountability
Belletieri’s lawyers previously stated that their client is receiving treatment for gambling addiction and is accepting full responsibility for his behavior.
"Belletieri makes no excuses for his actions but is unfortunately one of the tens of millions of Americans that suffer from addiction, which was at the root of his actions,” said defense attorney Joshua Karoly.
In 2022, Louis’ father, Louie Belletieri, the owner of Louie’s Italian Restaurant, a well-known establishment in Allentown, admitted guilt for not remitting $89K in sales taxes from the restaurant to the state. He received a two-year probation sentence and was instructed to pay restitution. Louie Belletieri passed away in February 2023 due to Hodgkin's lymphoma.
