$30 Million Dollar Man
Automatic disbarment was imposed as a result of a federal felony conviction by the New York Appellate Division for the Second Judicial Department
During the respondent’s plea allocution, he admitted that he voluntarily took part with others to conspire and defraud the banking industry as alleged in the indictment. Specifically, from January 2003 to January 2008, the respondent, with others, devised a scheme to defraud certain financial institutions by obtaining more than $30 million through materially false and fraudulent statements In mortgage loan applications, and by concealing material information regarding the collateral values of properties that were supposed to secure the mortgages.
Under the circumstances of this case, we conclude that the respondent’s conviction of conspiracy to commit bank fraud, in violation of 18 USC §§ 1349 and 1344, constitutes a felony within the meaning of Judiciary Law § 90(4)(e). By virtue of his federal felony conviction, the respondent was automatically disbarred and ceased to be an attorney pursuant to Judiciary Law § 90(4)(a).
A press release from the United States Attorney for the Eastern District of New York describes the charges.
At each closing, Petiton, an attorney admitted to practice in New York State, oversaw the actual sales to innocent sellers, and simultaneously created sham trusts into which title to the properties was transferred for no money. He and the coconspirators then immediately transferred title back to the co-defendants at nearly double the price to create a false paper trail documenting the artificially-inflated prices. Meanwhile, real estate appraiser Joseph Mirando prepared false appraisal reports to justify the inflated prices, while HTFC closing attorney Eric Finger concealed the far lower, true sales price for properties by lying on federal-mandated settlement forms. Finger received wire transfers of funds from the warehouse lenders, and after paying the innocent third-party sellers, disbursed the surplus money fraudulently obtained in the mortgages to his fellow co-conspirators.
(Mike Frisch)