Lawyer Sentenced for Mortgage Fraud Scam

Allison Tussey —  January 18, 2011 — 1 Comment

Patrick Reidy, 46, Gansevoort, New York, a Saratoga Springs-based lawyer, was sentenced in Saratoga County Court to 5 to 15 years in state prison for a felony grand-larceny charge stemming from a mortgage fraud scam that took $2.37 million from unsuspecting clients. He was convicted in August 2010, after having pleaded guilty to the charges and agreeing to repay restitution over the next 10 years.

As sole operator of Excelsior Title founded in 2002 to provide title insurance and closing services statewide, Reidy used money meant to pay down mortgages and other loans to fund his own lavish lifestyle by making minimum payments instead of paying the debts back in full.

“It boggles the mind how a seemingly intelligent attorney thinks he could get away with this,” said Judge Jerry Scarano to Reidy during his sentencing.

According to Saratoga County District Attorney James A. Murphy III, Reidy had a home worth more than $600,000 in Wilton, New York, a BMW, a Lincoln and an interest in property in Tobago, in the Caribbean, Murphy said. He was disbarred following his conviction on October 28, 2010.

 

Be Sociable, Share!

Allison Tussey

Posts Google+

One response to Lawyer Sentenced for Mortgage Fraud Scam

  1. Barbara Ann Jackson January 18, 2011 at 4:27 pm

    All across the country, judges need to cease allowing courtrooms to be used by foreclosure mill lawyers and mortgage servicers who commit fraud, and self-dealings that –RATHER than property returned to the lenders, enable lawyers or their straw buyer acquaintances to unlawfully acquire distressed property.

    There are lawyers actually engaged in real estate racketeering through intentional fraudulent pleadings that they file in civil courts and bankruptcy courts on behalf of purported lender-clients –and some are filed via names of defunct mortgage companies.

    For decades, it has been PROFITABLE, and FACILE to make use of judicial systems to accomplish multiple and various levels of foreclosure fraud, while also unlawfully rendering families homeless; and mortgage lenders and banks (that receive their with mortgage-default insurance and IRS write-offs), never get the homes. Ultimately, after repeated flips, the homes become sold to Freddie Mac.

    Lawyers who are engage in willful foreclosure fraud also unconscionably access “deficiency judgments” against homeowners even though the reason for the deficiency is because their straw buyer friends place unlawful “credit bids.” And the lawyers record worthless property deeds after sham foreclosure auctions that impedes title insurance. The list goes on!

    Anyone telling people to simply move out NEEDS a wake up call as to what’s really going on –including the cause of longterm blighted communities. Fraud foreclosed homes that ‘go back’ to lenders become put on the market and various channels and outcomes –always unlawful.

    Hopefully people continue signing and sharing the petition, “Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers” @ http://chn.ge/eU2zAm, who file foreclosure proceedings in civil as well as bankruptcy courts. And hopefully consumers will heap upon offices of Attorneys General, information / evidence about foreclosure-judicial wrongdoing. *SEE: “Commentary on: “Emerging Battleground on Mortgage Abuses: Foreclosure Mills” @ http://t.co/riJXgou.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong> 

*