Couple Face 5-Year Terms After Guilty Pleas in Escrow Theft

A couple accused of stealing $2.8 million from their Valencia escrow company face up to five years in state prison and payment of restitution after pleading guilty to charges of theft and tax evasion, according to authorities.

Harold Wiener, 53, pleaded guilty Monday in Los Angeles County Superior Court to one count of filing a false tax return and no contest to one count of grand theft, said Denise Quade, a spokeswoman for the California Franchise Tax Board.

Katherine Wiener, 48, pleaded guilty to one count of misstatement or omission pertaining to escrow affairs and no contest to one count of unauthorized disbursements from an escrow trust account, authorities said.

In one of the 10 largest embezzlements at an independent California escrow company in the past decade, the couple illegally funneled real estate trust funds into their personal accounts, Quade said. Harold Wiener was vice president and controller and Katherine Wiener was president and general manager.

The couple will most likely also have to repay $2.8 million to a professional organization and an insurance company that covered the losses. Sentencing is set for April 15.

“We are basically pleased with the result,” said Jeffrey Karpel, attorney for Harold Wiener, who he said is now hospitalized and facing amputation of his thumb because of blood circulation problems. “To have him go through a lengthy trial doesn’t make any sense.”

Katherine Wiener’s attorney could not be reached for comment.