An investigation into the business practices of the New Port Richey-based Gulf Coast Title Closings and Escrow Services has resulted in the arrest of a husband and wife team on multiple counts of stealing escrow funds and money laundering in a theft scheme of nearly $8 million from escrow accounts.

John T. Wehlau and Cheryl T. Wehlau were arrested after an investigation by the state's Division of Insurance Fraud. Investigators found that the couple allegedly started using the money for their own use around January 2004 and uncovered 21 documented instances where the couple stole or misappropriated funds of $100,000 each. The thefts continued through October 2006 when an audit showed a drastic shortfall in the company's escrow amounts, which triggered a move by the Commonwealth Land Title Insurance Company to stop doing business with the firm.

After the state placed the insurer in receivership, accountants found that Gulf Coast Title should have had $9.4 million in escrow monies. The financial review, however, found that the insurer only had $1.5 million in escrow money with $7.9 missing. The investigation also found the Wehlau's used the money to fund a lavish lifestyle including the use $390,000 in escrow money for a down payment on a $1.3 million home. They also bought their daughter a $271,000 condominium and traveled extensively.