An Illinois grand jury has indicted Kirby Sean McKee with seven counts of embezzlement in connection with McKee's alleged misappropriation of funds from escrow accounts and other sources at a title company he owned and operated.

According to the indictment, McKee ran a company named A Title Escrow Company, Inc. (ATEC) in Freeport, Illinois, and was an agent of Stewart Title.  Like many title agencies, ATEC provided not only title insurance, but also other settlement services, including escrow services.  At the time of McKee's alleged crimes, ATEC did a large enough volume of business such that the company escrow account always carried a significant balance. 

In 2004, McKee began illegally diverting sums from his company's escrow accounts, converting the funds for his own personal use--he allegedly bought $15,000 worth of jewelry with embezzled funds-- and to cover losses at his business, which would have been insolvent otherwise.  By keeping ATEC operating, McKee was able to benefit further by continuing to draw a salary from the company and maintaining the ability to employ family members and friends.

To keep from draining his accounts too quickly, McKee also failed to pay title insurance premiums to Stewart Title on behalf of his customers, misappropriating those funds and converting them to his own use.

The indictment alleges that between 2005 and 2005, McKee improperly converted to  his own personal use more than $500,000 that his customers had entrusted to him.  Investigators identified at least seven separate transactions where McKee embezzled his customers' money.

If convicted, each of the counts is punishable by up to 10 years in prison and a fine of up to $250,000 plus restitution.