Michigan Agents’ Licenses Suspended Over Embezzlement Allegations

News Summary

In Farmington Hills, MI, insurance agents Rand Sre and Tobby Rae Jablonski have had their licenses suspended due to serious allegations of mismanagement and embezzlement of millions in escrow funds. The state’s Department of Insurance and Financial Services cited a history of incompetence and untrustworthiness, raising concerns about public safety and welfare. This follows failed audits and complaints from consumers regarding mishandled property taxes and insurance policies. The situation underscores the critical need for regulatory oversight in the insurance sector as investigations continue.

Farmington Hills, Michigan – Two insurance agents from Oakland County, Rand Sre and Tobby Rae Jablonski, have had their licenses suspended by the state of Michigan following serious allegations of mismanagement and embezzlement involving millions of dollars in escrow funds.

The state’s Department of Insurance and Financial Services (DIFS) claims that Sre and Jablonski showcased a troubling pattern of incompetence, untrustworthiness, and diversion of insurance funds, posing what officials describe as an imminent threat to public safety and welfare.

Sre operates Peak Title of Michigan Inc. and Jablonski runs Peak Title Agency Co., both of which share a location in Farmington Hills. The problems surrounding the two agents began to emerge on December 6, when audit appointments were abruptly canceled due to their lack of cooperation with the DIFS.

In March, Jablonski’s response to a state audit request was to ignore it completely, showcasing a disturbing ongoing trend of resistance to oversight. This lack of cooperation intensified in April when a separate company alerted authorities that funds from Sre’s business were being diverted improperly. This revelation led to a lawsuit that accused Sre of mismanaging approximately $2.6 million in escrow funds.

While Sre alleged that Jablonski had engaged in embezzlement from his business, he failed to report these concerns to the DIFS, which raises questions about transparency. Complaints from consumers regarding Sre have highlighted issues such as unprocessed property tax payments for 2023 and 2024, as well as failures to collect insurance policy premiums without issuing actual policies.

Jablonski also faced serious complaints, including accusations of mismanaging $200,000 in escrow funds, ultimately resulting in the foreclosure of a residential property. A report by a court-appointed receiver revealed a series of significant abnormalities in financial management practices, including a baffling $1.3 million negative balance that Sre could not adequately explain.

Additionally, evidence showed that Sre was aware of unauthorized fund transfers initiated by Jablonski but failed to keep proper documentation of these transactions, which further complicates the situation. The DIFS responded to these severe allegations by suspending the licenses of both individuals, emphasizing the need for consumer protection in the title agency industry.

DIFS Director Anita Fox articulated the agency’s mission to ensure that consumers can trust their title agency’s compliance with the law. She encouraged individuals who may be affected by Sre and Jablonski’s suspension to contact DIFS directly for assistance.

Individuals wishing to report issues or seek further assistance can reach out to DIFS by calling 877-999-6442 or by completing a complaint form available on their official website.

This situation serves as a sobering reminder of the importance of regulatory oversight in the insurance and financial services sectors. The alleged actions of Sre and Jablonski undermine consumer confidence and may have significant repercussions for those who have interacted with their agencies.

The investigation into these allegations remains ongoing, and further developments are expected as authorities continue to assess the full impact of the agents’ actions.

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