Stealing mortgage proceeds from clients is bad enough. But two of the latest real estate attorneys gone wild stole from elderly clients.
John Peck was once the city lawyer for New Haven, Conn., and a member of respected family law practice.
Now, he faces seven years in prison after being convicted of stealing $2 million of his clients’ money.
Most of the thefts occurred in mortgage and real estate transactions, according to a statement from the Office of the Chief State’s Attorney in Connecticut.
Peck, 52, was also ordered by a judge to repay the $2 million prosecutors say he stole between January of 2001 and May of 2005.
According to prosecutors, among Peck’s victims were an elderly woman he ripped off for $272,506 she was owed from several real estate transactions; a long time female client in her 70s who was taken for $183,049 that Peck “misappropriated” from two real estate closings; the estate of a long-time client that lost $1.758 million when Peck “misappropriated.”
“Mr. Peck repeatedly misrepresented the status of the estate to the executor, the woman’s son,” prosecutors said.
In Pennsylvania, lawyer Mark Morrison has been charged by the Attorney General’s Elder Abuse Unit with stealing nearly $100,000 in mortgage payments from his elderly clients.
Morrison, 49, of Hopwood, Penn., was handling mortgage settlements for two couples, Pennsylvania Attorney General Tom Corbett said in a statement.
“As part of the mortgage settlements, Morrison was supplied with funds to settle all previous outstanding mortgage loans on the properties,” Corbett said. “Morrison used a small portion of the fund to settle smaller mortgages on the properties, but kept $99,182 for his own benefit, concealing the fact that he had not paid off all of the loans, as he was obligated to do.”
Morrison allegedly changed the billing address for one of the mortgages and began making smaller monthly payments, Corbett said.
“This alleged scheme was discovered in March 2006 when a payment arrived late and the mortgage company contacted the property owners,” he said, “informing them that the loan had not been paid off, as they had believed.”
Morrison is also charged with falsifying documents and forging letters from a title insurance agency that falsely stated he was an “issuing agent” or “approved attorney” of the agency. Morrison allegedly used the bogus letters to dupe the clients into believing he obtained title insurance for the two mortgages.
Corbett said Morrison is also charged with failing to making required payments from the mortgage settlements, including taxes, hazard insurance and broker and processing fees.
Down in Miami, lawyer Manuel “Manny” Arvesu has been suspended by The Florida Bar and the Florida Supreme Court for allegedly misusing client funds by not making mortgage payments on a closing he handled.
“There is clear and convincing evidence that Arvesu appears to be causing great public harm by misappropriating funds entrusted to him,” The Florida Bar Association said in a statement announcing Arvesu’s 30-day suspension from practicing.
Arvesu told MortgageDaily.com in an e-mail statement, “Cannot comment at this time, thanks.”
Court documents show that Arvesu allegedly used the funds for his personal use, including purchasing luxury cars, jewelry and home electronics.
According to a court order Arvesu was barred from “disbursing or withdrawing” any money from a trust account without permission of the Florida Supreme Court.
