An Allentown business owner has been arrested in a racketeering and related theft investigation in which several people lost more than $1.26 million, according to a news release from the office of the Lehigh County District Attorney.

“The defendant, the owner of an Allentown title insurance company, failed to properly disperse the funds he received during real estate sales on behalf of sellers he represented,” according to the release dated Oct. 27.

Louis Belletieri, 42, of Allentown, is charged with three counts of corrupt organizations, a felony of the first degree; six counts of failure to make required disposition of funds and three counts of receiving stolen property; all felonies of the second degree.

Belletieri surrendered Oct. 27 and was arraigned on all three cases.

According to authorities, Belletieri was the sole proprietor of Legacy Title, 2030 West Tilghman St., Suite 203, in Allentown.

He was the only employee with access to the Legacy Title escrow account and acted as title agent during each of the real estate transactions involved in the charges.

The charges stem from the following:

•A client reported Belletieri diverted $496,141.25 from the proceeds of the sale of his home. On June 29 the home was sold and the title and settlement agent was Louis Belletieri of Legacy Title. As part of his obligation as title agent representing the client in the sale, Belletieri was required to disperse $479,857.98 to satisfy a mortgage loan on the property as well as $8,196.78 to the Pennsylvania Department of Revenue to satisfy a lien on the property and $8,086,49 to a water/sewer authority to satisfy an outstanding balance. Belletieri allegedly failed to make any of these payments, which the investigation confirmed.

•A married couple reported to police Belletieri diverted $394,739.62 from the sale of their house. As part of his obligation as title agent representing the couple in the sale, Belletieri was required to disperse $394,739.62 to satisfy a mortgage on the property and allegedly failed to do so, which the investigation confirmed.

•An executor of an estate reported to the district attorney’s office Belletieri diverted $369,810.60 from the sale of her mother’s home. A check from the escrow account of Legacy Title payable to the estate in the amount of $223,859.65 was not honored when it was deposited because the escrow account had been closed and funds were not available. As part of his obligation as title agent, Belletieri was required to disperse $145,950.95 to a bank to satisfy the mortgage on the property and allegedly failed to do so as confirmed by investigators.

“As of Oct. 27, none of these funds have been properly dispersed therefore it is alleged as a part of this investigation that Belletieri unlawfully took possession of those funds totaling $1,260,691.47 for his own gain,” according to the news release.

Legacy Title is no longer in operation and the investigation is continuing, according to authorities.

Anyone who believes they may have been victimized by Belletieri or Legacy Title should contact the district attorney’s office at 610-782-3100.