CLOSING ATTORNEY WHO MISHANDLED MORTGAGE FUNDS SENTENCED TO 21 MONTHS IN PRISON

By
Education & Training with The Real Estate Mart of Tennessee, Inc. TN LIC# 290452

Attorney Who Mishandled Mortgage Funds Sentenced to 21 Months in Federal Prison

U.S. Attorney’s Office October 07, 2011
  • District of Connecticut (203) 821-3700
 
David B. Fein, United States Attorney for the District of Connecticut, announced that BRIAN P. McMANUS, 43, of Fairfield, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 21 months of imprisonment, followed by three years of supervised release, for misappropriating more than $1 million in funds during real estate transactions he handled.

According to court documents and statements made in court, McMANUS, who operated a law practice in New Haven, engaged in a series of fraudulent transactions in his capacity as the closing attorney on a number of real estate transactions.

Specifically, McMANUS failed to pay off existing mortgages on the properties involved in the real estate transactions in a timely fashion and illegally used mortgage funds that had been deposited into his IOLTA account for other purposes.

On July 22, 2008, McMANUS handled a real estate closing involving the refinancing of a residential property located in Greenwich. At the time of the closing, there was an outstanding mortgage on the property in the amount of approximately $2 million that was to be paid off using funds being provided by a different lender as part of the refinancing transaction. However, rather than paying off the existing mortgage on the Greenwich property, McMANUS used more than $1.45 million of the new mortgage monies that had been transferred to his IOLTA account to pay off outstanding mortgages from prior, unrelated real estate transactions he had handled, to make monthly payments on the outstanding Greenwich mortgage loan that was to have been paid off in full, and to pay personal and business expenses.

On June 24, 2011, McMANUS waived his right to indictment and pleaded guilty to one count of bank fraud.

Today, Judge Burns ordered McMANUS to pay restitution in the amount of $2,041,417.41, of which approximately $568,000 has previously been deposited with the clerk of the court.

U.S. Attorney Fein noted that McMANUS has withdrawn from the practice of law and the Connecticut Superior Court has appointed a trustee to oversee the closing of his practice.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney John H. Durham.

In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force, or by sending an e-mail to ctmortgagefraud@ic.fbi.gov.

The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service - Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General; and State of Connecticut Department of Banking.

Courtesy FBI
Posted by

 

 


David Saks


 

Earth

Content Protected © 2014  
Subscribe To David's Blog    
Add David as an Associate

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tshirt to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
Tennessee Shelby County Memphis
Groups:
Crime
Realtors®
Tags:
real estate fraud

Comments 2 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the truck to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
72,651
Melissa Hailey
Collin County Realtor, Lucas, Murphy, Plano, Parke
Coldwell Banker Jane Henry Realtors (Wylie TX & LovejoyISD)

WOW!  You are on a roll.  Can you believe these fraud cases?  It's so sad to think of the mess this type of thing has caused.  If people would just act with honesty and integrity in everything they do, the world would be a better place.

October 07, 2011 06:40 PM
Rainmaker
1,182,730
David Saks
Memphis, Tennessee
The Real Estate Mart of Tennessee, Inc.

Wishful thinking, Melissa, but I agree. Money has a powerful odor and attracts real vermin. Skunks who abuse the public trust are even more acrid. 

October 07, 2011 06:49 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
1,182,730

David Saks

Memphis, Tennessee
ActiveRain Enriches Lives ! Question or Note ? Send It Here !
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the man to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Join ActiveRain


Legal Disclaimer:

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies

The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

Photos © & Licensed by Nova Development

Content Protected © 2014   


Subscribe To David's Blog    
Add David as an Associate

Before you even think about committing a real estate crime click the red button.
Real Estate Crimes

Free Meta Tag Tool for SEO

Meta Tag Analyzer