A man from Pennsylvania has admitted to deceiving 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 prosecutors allege that Belletieri devised a scheme to deceive a title insurance underwriter and clients of his Legacy Title business in Allentown in order to finance his online sports betting addiction. 

The Department of Justice states that in November 2013, Belletieri's Legacy Title signed a contract with Fidelity National Title Insurance, designating his firm as an agent for providing title insurance commitments, policies, and endorsements for properties in Pennsylvania. Legacy Title managed 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 to his own accounts. At the same time, Belletieri faced allegations of improperly funneling nearly $2.5 million from the Fidelity escrow account to his Legacy Title account, with some of the funds not being for valid business reasons. 

Years in Incarceration 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 distributed. Holihan, who originally pursued and filed charges against Belletieri, withdrew his case once federal prosecutors became involved. 

Federal authorities report that Belletieri also secured a fraudulent loan of $825K under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The complaint outlines that Belletieri engaged in various activities to hide and mask his fraudulent activities, such as altering documents and utilizing recently acquired stolen funds to settle past obligations. 

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

Belletieri Accepts Accountability 

Belletieri’s lawyers have stated that their client is receiving treatment for gambling addiction and is fully accountable 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, 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 owed to the state. He received a sentence of two years' probation and was instructed to make restitution payments. Louie Belletieri passed away in February 2023 due to Hodgkin’s lymphoma.