Mass. Lawyer Gets 5 Years For, Among Other Things, Pocketing $500K+ Meant To Pay Off Existing Liens While Acting As Closing Agent In Real Estate Deals

The Office of Massachusetts Attorney General Martha Coakley announced last week that attorney Bruce Namenson, age 46, of Walpole, pled guilty to over 100 charges involving fraud, larceny, conspiracy, or forgery in which he allegedly screwed over his clients or insurance companies. His victims ranged in age from 15 to 95. Namenson was sentenced to serve 5 years in the House of Correction to be followed by 10 years of probation. As part of his probation, Namenson must repay over $600,000 in restitution. He is also prohibited from practicing law and being employed in any position in the legal profession during this 10 year probationary period.

Included in his bad acts, according to the Massachusetts AG's office:

• From April through September 2007, Namenson carried out a scheme that defrauded home sellers and buyers and financial lending institutions. During this time Namenson acted as closing agents for three residential real estate closings. At the time of these sales there were outstanding mortgages on the properties totaling over $500,000. The buyers obtained loans to purchase the properties. At the time of the closings, the purchase funds were wired to Namenson’s business account for the purpose of paying off the outstanding mortgages, with the balance of the proceeds (minus closing costs) payable to the sellers. After the closings, Namenson failed to pay off the over $500,000 in mortgage debts remaining on the homes. As a result, the homes were threatened with foreclosure. Namenson attempted to avoid foreclosure and discovery of the thefts by periodically making partial loan payments to the banks.

For the Mass AG's press release, see Quincy Attorney Pleads Guilty, Sentenced on Charges of Insurance Fraud, Larceny, Forgery, Embezzlement and Other Charges.

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