Disbarment For Real Estate Fraud

The Maryland Court of Appeals has disbarred two attorneys as a result of “their involvement  with a fraudulent, equity-stripping lease/buyback arrangement” for a husband and wife homeowners. One had conducted a closing where he utilized a false occupancy statement and signed a HUD form that misrepresented the manner in which settlement funds would be distributed. The other, who acted as the supervisor of the other lawyer and the title company, had violated fiduciary duties to distribute funds in a manner consistent with the settlement forms and misappropriated settlement proceeds. (Mike Frisch)