Attorney, Associate Accused Of $800K Rip Off Of Real Estate Clients; Failed To Apply Closing Funds Towards Payoff Of Existing Mortgages, Say Lawsuits

In New Jersey, The Times of Trenton reports:

• A Hamilton lawyer and his associate face allegations that they swindled real estate clients out of nearly $800,000 by pocketing funds that should have been used to pay off mortgages after home sales.

• Michael J. Feehan, a Lawrence man with law offices in Hamilton, and Jason M. Bloom, of Warrington, Pa., are accused of misappropriating nearly $460,000 related to the sale of a West Long Beach home, according to a civil lawsuit filed earlier this month in Superior Court in Monmouth County. The plaintiffs, Michael A. Mastapeter and Anthony Masters, didn't find out until they received a foreclosure notice on Feb. 14, according to Robert J. Stack, their Kinnelon attorney.

• Meanwhile, another lawsuit alleging a similar fraud was filed in March in Mercer County. In that case, a Superior Court judge ordered Bloom's bank accounts frozen after he allegedly diverted $354,000 to his own use, according to court records.

For more, see Attorney, associate accused in bilkings (Pair allegedly stole $800G) (no longer available online).

If a New Jersey attorney is representing you and screws you out of money or property through dishonest conduct, go to the New Jersey Supreme Court's Lawyers' Fund for Client Protection for more information. For other states and Canada, see:

• Directory Of Lawyers' Funds For Client Protection (American Bar Association);
• Check the USA Client Protection Funds Map;
• Check the Canada Client Protection Funds Map.

Go here, Go here, and Go here for other stories of trust account / escrow account theft of funds. sneaky slick escrow agents gamma