Michigan title agents suspended over alleged mismanagement of escrow funds

Two Oakland County, Michigan, title insurance agents have had their licenses suspended following allegations of misappropriating millions in escrow funds.

The agents are also accused of failing to cooperate with auditors and a state investigation — as well as contributing to at least one homeowner’s foreclosure, according to a local news report.

The Michigan Department of Insurance and Financial Services (DIFS) announced disciplinary action against Rand Sre and Tobby Rae Jablonski, along with the title companies they were operating — Peak Title of Michigan Inc. and Peak Title Agency Co.

According to a DIFS notice, the pair posed an “imminent threat of harm” due to what the department called “incompetence, untrustworthiness, and diversion of insurance funds.”

Sre and Jablonski are accused of “intentionally or negligently misappropriating funds they hold in a fiduciary capacity.”

Alleged misconduct

On Dec. 6, First American Title Insurance Co. terminated its appointments with both agents after they failed to comply with audit requests.

Jablonski then ignored a direct audit order from DIFS in March — a pattern that continued in the following months, according to the notice.

By late April, WFG National Title Insurance Co. had cancelled Sre’s appointments and alleged he had mismanaged $2.6 million in escrow funds. A lawsuit followed.

In his response to DIFS, Sre claimed he couldn’t comply with state investigators because Jablonski had embezzled funds from his company. A court-appointed receiver later reportedly identified significant discrepancies in the company ledgers — including a $1.3 million negative balance Sre could not explain.

The notice also alleged that Sre was aware Jablonski had improperly wired funds without appropriate documentation.

In one case, an individual said that property taxes owed for 2023 and 2024 were never paid. Additionally, Sre allegedly collected premiums without ever issuing the associated insurance policy.

In another case, Jablonski is accused of mishandling $200,000 in escrow funds for a real estate deal, which reportedly forced the property owner into foreclosure.

DFIS Director Anita Fox urged those who believe they’ve been affected to contact the department at 877-999-6442.