A man from Pennsylvania has admitted to cheating a title insurance underwriter and his customers to finance 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 prosecutors allege that Belletieri plotted and deceived a title insurance underwriter and clients of his Legacy Title firm in Allentown to finance his online sports betting habit. 

The Department of Justice reports that in November 2013, Belletieri’s Legacy Title signed an agreement with Fidelity National Title Insurance that designated his company as an agent for providing title insurance commitments, policies, and endorsements for properties located in Pennsylvania. Legacy Title held an escrow account that accepted 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 suspect Belletieri embezzled over $6.4 million from the escrow account into his personal accounts. At the same time, Belletieri faced allegations of directing nearly $2.5 million from the Fidelity escrow account to his Legacy Title account, part of which was not intended for legitimate business use. 

Long Prison Sentences Likely 

The criminal case involving Belletieri started when over a dozen homeowners and mortgage borrowers approached Lehigh County District Attorney Gavin Holihan, expressing concerns that their escrow funds were not being released. Holihan, who originally pursued and filed charges against Belletieri, withdrew his case after federal prosecutors became involved. 

Federal authorities state that Belletieri also obtained a fraudulent loan under the Coronavirus Aid, Relief, and Economic Security (CARES) Act totaling $825K. The complaint outlines that Belletieri engaged in various efforts to hide and obscure his deceitful plan, such as fabricating documents and utilizing recently stolen funds to settle previous obligations. 

Belletieri could receive a sentence of up to 40 years in prison. He is scheduled to appear in court for sentencing on September 12. 

Belletieri Accepts Accountability 

Belletieri's lawyers previously stated that their client is receiving treatment for gambling addiction and is fully accountable for his actions.

"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, Louie Belletieri, Louis’ father and owner of Louie’s Italian Restaurant, a well-known establishment in Allentown, admitted to not paying $89K in sales taxes from the business to the state. He received a two-year probation sentence and was required to make restitution payments. Louie Belletieri passed away in February 2023 due to Hodgkin’s lymphoma.