Massachusetts Closing Attorney To Pay $115K In Restitution, Penalties For Participating In Alleged Equity Stripping & Mortgage Fraud Schemes

From the Office of the Massachusetts Attorney General:

• Attorney General Martha Coakley’s Office has entered into a judgment with Brockton attorney Valerie Hanserd resolving allegations over her role as a closing attorney in two companion lawsuits that both allege unfair practices with respect to mortgage brokering services. [...] Under the terms of the Consent Judgment, [...] Hanserd must refrain from acting as a real estate closing attorney or title agent for seven years retroactive to April 27, 2007. In addition, Hanserd must pay $80,000 in restitution to victims of foreclosure rescue schemes or to address the negative impact of mortgage foreclosures in the Commonwealth, as well as $35,000 in fees and penalties to the Commonwealth.

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• [One lawsuit] alleges that Hanserd and 18 other defendants participated in a foreclosure rescue scheme targeted at distressed homeowners facing foreclosure. Each of the defendants allegedly conspired through their respective roles as mortgage brokers, real estate brokers, closing attorneys and straw buyers to deceive homeowners into selling their homes under the false promise of avoiding foreclosure and maintaining their homes and their homes’ equity.

• The defendants not only obtained title to the homeowners’ residences but also stripped most of the homes’ equity by distributing sale proceeds to pay for unearned brokers’ fees and other fictitious services, and drafted and submitted to lenders HUD Settlement Statements that did not accurately reflect the disbursements made in the transactions. In certain cases, the defendants resold the homes in multiple transactions amongst themselves, thereby stripping the homes of all their equity.

For the entire press release, see Attorney General Martha Coakley Obtains Judgment Against Brockton Attorney for Her Alleged Role in Mortgage Fraud and a Foreclosure Rescue Scheme.