By Daily Press staff
The Los Angeles County District Attorney’s Office is trying to locate victims of a 53-year-old Los Angeles woman, who more than a decade ago stole more than $3 million, to return a portion of their lost savings.
Deputy District Attorney Allan Fork said the DA’s office has won an appeal to repay the estimated 120, mostly Korean, victims who were defrauded by Linda Park Ableman when she served as president of two companies — CitiEscrow and 1031 Exchange — between September 1989 and May 1990.
After eluding authorities and thwarting investigations for years, Ableman pleaded guilty last year to one count of grand theft and nine counts of money laundering. She agreed to repay $400,000 to victims. However, when Ableman was sentenced to three years in state prison, the trial court judge ordered the DA’s office to pay the $400,000 to the Escrow Agents Fidelity Corp., which insures escrow companies.
The DA’s office appealed and the high court recently reversed the trial court, ordering the $400,000 be repaid to CitiEscrow and 1031 Exchange customers who had lost their deposits or investments.
Victims must contact the DA’s office by Dec. 31 to file a claim. A restitution hearing is scheduled for Feb. 1.
Ableman was hired by her sister, Nancy Murakami, in 1986 to work at CitiEscrow and 1031 Exchange, a deferral accommodation service that allowed clients to defer capital gains tax under section 1031 of the Internal Revenue Code.
In June 1988, Ableman bought almost all of her sister’s stock and then forced her sister and her sister’s business partner, Christine Chung, out of the business, prosecutors said. Ableman in September 1989 took over the company.
Soon after Ableman assumed control, the Department of Corporations started investigating complaints about CitiEscrow. A financial audit revealed shortages. Escrow companies are required by law to have an outside agency do monthly internal audits, but all the records mysteriously disappeared, impeding investigation of CitiEscrow and 1031 Exchange, Fork said.
Ableman later filed Chapter 11 bankruptcy for CitiEscrow and 1031 Exchange, and then filed Chapter 7 bankruptcy for herself after she fled to Hawaii to avoid repaying the stolen money, prosecutors said. After years of investigation by several agencies, Ableman was charged with grand theft and money laundering. She pleaded guilty to all charges. Her 10-year prison term would be reduced if she repaid $400,000, which she did, Fork said.
Some victims were repaid in full by the Escrow Agents Fidelity Corp. through the bankruptcy trustee, Ronald Durkin. However, more than 100 victims never fully recouped their losses. Victims must contact the DA’s office at 213-580-3322 or 213-580-3200 to request a claim form, which must be returned to the district attorney’s office no later than Dec. 31. Whatever money is not claimed will be paid to EAFC as the secondary victim under the Financial Code, Fork said.
Originally published in the Santa Monica Daily Press print edition on December 5, 2003. Read the original PDF.