Stewart Information Services Corp. said last week
that an "agency defalcation" will cause it to widen its net loss for the first quarter, forcing it to restate earnings.
The "found fraud" will lead to a $4.6 million pretax charge to earnings, the Houston-based title giant said, widening its first quarter loss to $25.2 million, or $1.40/share. Stewart had originally reported its first quarter loss at $22.3 million, or $1.24/share.
For those of you not familiar with the title biz, "agency defalcation" refers to a title agent who misuses funds intended to be used to close insured transactions.