Mortgage Fraud Disbarment

A New Jersey attorney has consented to disbarment.

Mortgage Fraud Consultants had a story

 A Red Bank lawyer admitted Monday to conspiring with others to steal more than $1 million from lenders by filing fraudulent mortgage applications, diverting mortgage proceeds and falsifying settlement statements, officials said.

Maeble L. Hairston, 57, of Red Bank pleaded guilty to second-degree racketeering in Morris County, according to a prepared statement released by the state Attorney General’s Office.

The state will recommend Hairston be sentenced to five-to-seven years in prison under the plea agreement. Hairston’s sentencing is scheduled for Dec. 7, according to the statement. Hairston also must forfeit her license to practice law in New Jersey and any other state, according to the statement.

Hairston conspired with others in a scheme to falsify mortgage-loan applications for loans to unqualified straw purchasers for homes at grossly inflated values, according to the statement. The co-conspirators then would steal loan proceeds by diverting them at closing, according to the statement. A straw purchaser is a person who makes a purchase on behalf of another person.

While serving as a settlement agent for four real estate closings involving a total of $1,051,804 in loans, Hairston admitted she diverted proceeds to other members of the conspiracy and covered up the thefts by submitting fraudulent HUD settlement statements, according to the statement. The charge is the result of an ongoing investigation led by the Essex County Inspector General’s Office, according to the statement.

Written By-Anthony Panissidi

(Mike Frisch)