They received insurance money to fix a sinkhole beneath their home. But as new owners found out, that’s not what they used it for

An appellate court has upheld the convictions of a Spring Hill couple who inappropriately used money intended to repair a sinkhole below their house.

On Monday, Acting United States Attorney W. Stephen Muldrow announced that the U.S. Court of Appeals for the Eleventh Circuit had affirmed the convictions of Spring Hill residents Glenn and Kathryn Jasen. In 2015, a federal jury found them guilty of one count of wire fraud, after they received insurance proceeds to make repairs, failed to make repairs and then sold the property without disclosing information about the sinkhole to the new owners.

“It is undisputed the Jasens knew their property had a sinkhole on it when they sold the property,” a news release states. “They had already collected over $150,000 in insurance proceeds because of it. Nevertheless, they indicated on their disclosure statement that they knew of no sinkhole on the property. They reiterated this misrepresentation in multiple transaction documents and the purchaser relied on these statements in acquiring the property, testifying he would not have done so had he known of this sinkhole.”

In 2009, the Jasens discovered a sinkhole beneath their Spring Hill home and filed a claim with Citizens Property insurance, which paid them $153,745.37.

“Rather than using the money to repair the sinkhole, the Jasens kept it,” the release states. “The couple then made cosmetic repairs to the house and listed it for sale, keeping the sinkhole a secret from prospective buyers.”

The Jasens sold the home and six years later, the new owners — a family with five children — heard a crash beneath the home.

“They discovered a crack running across the floor of their living room and immediately evacuated,” the release states.

This story was originally published May 22, 2017 at 11:29 AM with the headline "They received insurance money to fix a sinkhole beneath their home. But as new owners found out, that’s not what they used it for."