Bad Mortgage Lawyers - Mortgage law news from MortgageDaily.com


DALLAS, June 26 /PRNewswire/ A rash of crooked attorneys has descended upon real estate finance, according to the latest coverage from MortgageDaily.com, the dominant source of online news for the mortgage industry.

Five lawyers are facing varying charges that include stealing from clients, ripping off churches and withholding funds from lenders.

In one Connecticut case, a longtime prominent attorney who is also a former mayor pleaded guilty to stealing more than $600,000 from clients.

Much of the money was supposed to pay off mortgages but was instead used to cover gambling losses.

Another Connecticut lawyer was convicted of embezzling more than $2.2 million in client funds.

He "diverted the proceeds from the sale of properties to himself and applied for a mortgage on the victim's behalf, embezzling funds for his own use," the Chief State's Attorney said in a statement.

A Florida attorney was disbarred for allegedly stealing more than $100,000 by not paying off a mortgage that dated back to 1992.

According to a report from the Florida Supreme Court, he lost his license for engaging in "conduct involving dishonesty, fraud, deceit or misrepresentation;" for failing to comply with the rules and regulations of handling trust accounts; and for not keeping a client up to date with information.

An Allentown, Pa., lawyer was charged with using money he stole from mortgage transactions to buy a Canadian vacation home and to board horses.

A 24-count indictment alleges he forged clients' names on checks and documents he then submitted to financial institutions and investment firms to get access to their money.

Finally, an Illinois lawyer has been charged with stealing from churches.

He was a disbarred lawyer was charged with two felonies for his role in a scheme to bilk churches in a phony land deal, a spokesman for the Cook County State's Attorney confirmed to MortgageDaily.com.


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Source: MortgageDaily.com