Another Atlanta Attorney Indicted In Mortgage Fraud

Closing attorney Mary Reagan was arrested and made her initial appearance in Atlanta Federal Court yesterday. She and three co-defendants, Adriene Newby-Allen, aka Cassandra Miller, and Brinson Allen, both of Alpharetta; and James Howard Bailey III, of Houston, have been indicted on charges of conspiracy, bank fraud and wire fraud.

The alleged fraud reportedly involved inflated appraisals, false credit applications, and income, employment and asset misrepresentations.

The government alleges Reagan disbursed loan proceeds in a manner inconsistent with the closing statements (HUD-1) she prepared and also is alleged to have prepared multiple closing statements (double HUD-1 scam). She allegedly received $40,000 in kickbacks.

According to one news report, "Reagan is among a growing number of real estate lawyers being federally prosecuted in Atlanta for closing real estate loans that were found to be fraudulent." In 2005, former Stone Mountain lawyer Chalana W. McFarland got a 30 year prison sentence for her role in a mortgage fraud scheme.

Two other lawyers, Andrew E. Wolf, of Wolf & Associates, and Cumming attorney J. Christopher Halcomb, await sentencing for their roles in another mortgage fraud case.

To read more, see:

• Local woman arrested on mortgage fraud charges (Atlanta Business Chronicle)
• Lawyer arrested in bank fraud probe (Daily Report)
  

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