Closing Attorney Charged with Fraud

Allison Tussey —  December 6, 2011 — Leave a comment

Craig J. Martin, 53, Taunton, Massachusetts, a real estate attorney, was charged in federal court with diverting mortgage loan funds from real estate closings.

Martin was charged in an Information with two counts of bank fraud.

The information alleges that Martin, in acting as a closing attorney for real estate transactions, received mortgage loan funds from lenders, which were to be held in his attorney trust account and used for the closings. As closing attorney, Martin was responsible for using the loan proceeds to pay off the existing mortgages on the properties. But instead of paying off the existing mortgages, Martin diverted at least $3,005,445 in mortgage funds to other purposes and falsified the loan closing documents to conceal his misappropriation of the funds.

If convicted on these charges, Martin faces up to 30 years in prison to be followed by five years of supervised release, and a $1 million fine on each of the charges.

United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Economic Crimes Unit.

The details contained in the information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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Allison Tussey

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