Iowa Attorney Faces Charges Of Illegally Dipping Into Trust Account Cash Intended For Clients' Real Estate Transactions

In Des Moines, Iowa, The Des Moines Register reports:

• A Des Moines attorney has been accused of theft in a real estate fraud investigation. Kristine Corcoran Frye, 51, faces two counts of first-degree theft for allegedly pocketing some $30,000 in one real estate transaction and $58,000 in another one.

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• Randall Archer of Archer Construction Inc., one of the victims listed on a Des Moines police report, gave Frye a $40,000 cashier's check from Bankers Trust on Jan. 12, 2009, police said. The check was made payable to Kristine Corcoran Frye's trust account. Police said only $10,000 of the total amount owed on the West Des Moines property was paid. The police report says, "Suspect took the remaining $30,000 from the victim and at no time did the suspect repay the victim or pay the debts she was suppose to in the first place." Archer allegedly had to make up for the missing money by taking it out of his own pocket.

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• The other alleged victim is Edward Jones Mortgage of Minneapolis. Police said in a report the company was working with Frye to refinance a home [...] last February. Some $115,000 was placed in Frye's trust fund so the deal could go forward, according to Detective Tarry Pote. But Edward Jones Mortgage received just a little over $15,000. Two weeks later Edward Jones received just over $50,000. Together, the two amounts were still short of what was needed."They contacted (Frye) and said that that was not the right amount," Pote said. "She told them to wire back the amount that was sent and she would send them the correct amount." Pote said Frye tried again, but the amount was still some $58,000 shy of the mark required for refinancing and the amount she was given.(1)

Source: Lawyer faces theft charges in real estate fraud case.

(1) If an Iowa attorney screws you out of money or property through dishonest conduct, contact the Iowa Client Security Commission for information on the qualifications to recover some or all of your losses from their fund. Their fund reimburses clients of lawyers who have misappropriated or lost a client's money. According to their website, the purpose of the fund is to prevent defalcations by members of the Iowa bar, and insofar as practicable, to provide for the indemnification by the profession for losses caused to the public by the dishonest conduct of members of the bar of this state. The claim form to be used to apply for compensation from the Commission may be downloaded here: In Rich Text Format; In PDF Format.

For other states and Canada, see:

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