Thursday, February 11, 2010

Closing Attorney Gets Back-To-Back Boot From State Bars; Accused Of Misappropriating $500K+ Of Client Cash In Rhode Island, $350K+ In Bay State

In Providence, Rhode Island, The Providence Journal reports:

  • A Needham, Mass., lawyer is the latest attorney to be disbarred by the Rhode Island Supreme Court for allegedly mishandling a mortgage refinancing. The high court on Jan. 19 barred David L. Spector from practicing in the state for allegedly misappropriating more than $500,000 that was supposed to be paid to banks in connection with four refinancings, including one for a Westerly resident, Doris Krakow, according to according to David D. Curtin, the high court’s disciplinary counsel.(1)


  • Spector was disbarred in Massachusetts on Jan. 22. His Massachusetts law license was temporarily suspended in March 2009 after three clients complained that he had wrongfully converted $350,525 to his own use instead of paying off lenders. The specifics of the Massachusetts cases have not been publicly disclosed.

For the story, see Attorney disbarred in mortgage payment case.

(1) Spector pocketed $150,369 from ING Bank that should have been forwarded to Washington Mutual Bank to pay off an existing mortgage for Krakow, Curtin reportedly said. As a result, Krakow is now struggling with two mortgages for her Westerly home, but is negotiating with her title insurance company to cover the money Spector allegedly took, Curtin reportedly said. Spector, who consented to disbarment, has not been criminally charged, Curtin said, but Krakow has filed a complaint with the Rhode Island State Police, the story states.

State police charged two disbarred lawyers in the past two weeks with misappropriating money from real estate transactions. Robert D. Natal faces 11 felony counts for mishandling $1.1 million. Todd M. Amaral, a correctional officer at the Adult Correctional Institutions who lost his license to practice law last October, too, was charged with two counts of unlawful appropriation and two counts of forgery. See Rhode Island State Cops Probe Allegations Of Lawyers w/ Sticky Fingers; Bag Two Suspected Of Swiping Client Cash, At Least Seven Others In Crosshairs.

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