Frank Bryant BROWN was suspended from the practice of law for two years and disbarred by the South Carolina Supreme Court for his role in the closings of multiple fraudulent real estate transactions. Mr. Brown was previously a partner at the law firm of Forquer, Lattimore & Calloway (f/k/a Forquer & Green and f/k/a Green, Brock, Forquer & Scott) and had worked with the firm prior to becoming an attorney. The Court disciplined Brown pursuant to two consent orders. The two-year suspension resulted from conduct associated with the closing of real estate transactions that occurred prior to Mr. Brown’s admission to practice law. The disbarment (which will run concurrently with the two year suspension) results primarily from closings performed by Mr. Brown for Kenbill Properties and Keystone Properties. The Court’s order relates the stipulated facts underlying the discipline and describes Brown’s role in preparing settlement statements that misrepresented the source and disposition of closing funds and closing flip transactions in simultaneous escrows. Mr. Brown also entered into a joint venture with Mr. Heckle, the proprietor of Keystone. Among other things, he failed to disclose this conflict of interest to lenders in closing transactions. In connection with owner occupancy misrepresentations in the joint venture transactions, the stipulated facts provided:

In connection with these transactions, owner occupancy affidavits that stated the borrowers/investors intended to occupy the properties as primary residences were signed, notarized, and submitted to the lenders. Respondent was aware that most of the borrowers/investors did not intend to live in the homes. Respondent incorrectly advised the borrowers/investors that they were only required to spend one night in their properties to render the owner occupancy affidavits truthful. Respondent based this advice on incorrect information he received from a lender not associated with any of the transactions.

The Opinion did note that when Brown discovered that his understanding of this requirement was erroneous he assisted the borrowers in notifying lenders and submitting corrected affidavits and also that he made a self-report to the Office of Disciplinary Counsel.

2004 WL 2516290

For information related to Mark Lattimore see:

October 26, 2004: Mark Lattimore Disbarred for Role in South Carolina Mortgage Fraud Scheme

October 19, 2004: Sentences in South Carolina Fraud Scheme

September 20, 2004: Mark Lattimore, South Carolina