Disbarred Attorney Cops Plea To Looting $3M+ From Escrow Account Used To Close Real Estate Transactions; 15 Deals Left Unfunded

From the Office of the U.S. Attorney (Minneapolis/St.Paul, Minnesota):

• [Earlier this month] in federal court in Minneapolis, Minnesota, [] 38-year-old [now-disbarred in Minnesota(1)] lawyer [Jason Eric Fischer] from Hudson, Wisconsin, pleaded guilty to mortgage fraud by stealing more than $3 million from the escrow account at the real estate title and settlement company he jointly owned.

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• In his plea agreement, Fischer admitted that from 2006 through May 2009, he orchestrated a scheme to divert funds from the escrow account at Real Source Title, a company he jointly owned and managed. The company, which had offices in Mahtomedi and Burnsville in addition to Illinois and Hudson, Wisconsin, routinely accepted wire transfers and checks from buyers and lenders. Those funds were to be held in escrow for the sole purpose of closing residential real estate transactions.

• To further his scheme, Fischer represented to buyers, lenders, underwriters, and others that the money deposited into the company’s escrow account was, in fact, used only to close real estate transactions. He made those representations by producing and mailing false HUD-1 settlement statements to people of interest. In truth, however, Fischer regularly withdrew escrow-account money to pay for personal and business expenses as well as fund prior company real estate transactions.

• Between 2006 and May 2009, Fischer diverted approximately $3 million from the escrow account at Real Source Title; and by May 2009, the account was depleted and unable to fund 15 loans. As a result, buyers, sellers, lenders, underwriters, and others suffered significant financial loss.(2)

For the U.S. Attorney press release, see Lawyer pleads guilty to more than $3 million mortgage fraud scheme.

(1) For the disbarment order, see In re Petition for Disciplinary Action against Jason Eric Fischer.

(2) If a Minnesota attorney, either in the course of representing you or acting as a fiduciary, screws you out of money or property through dishonest conduct, go to the Minnesota Client Security Board for information on how to recover some or all of your losses from the fund.
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.

Maps available courtesy of The National Client Protection Organization, Inc.