Now-Disbarred Title Lawyer Cops Plea To Ripping Off $2.7M In Real Estate Closing Proceeds Due To Existing Mortgage Holders, Clients From Trust Account
From the Office of the U.S. Attorney (Fort Lauderdale, Florida):
- [A]ttorney James B. Hayes, 57, of Boca Raton, Florida, pled guilty [] to a criminal information charging him in two counts of making false statements on a HUD-1 Settlement Form, a matter within the jurisdiction of the U.S. Department of Housing and Urban Development (HUD) in violation of Title 18, United States Code, Section 1001.
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- According to the criminal information and statements made in court during [this week's] plea hearing, Hayes practiced law during 2007 through December 2009 at James B. Hayes P.A. in Boca Raton, Florida, handling real estate closings for clients and mortgage lenders.
- According to statements made in court, during that time, Hayes misappropriated more than $2,706,346.91 that were to be used to payoff prior loans and clients funds from his law firms trust account. Instead of using the money as directed on several closings, Hayes prepared and sent false HUD-1 Real Estate Settlement Forms on closings, falsely reflecting the old loans had been paid off.
- As part of the plea agreement announced in court today, Hayes agreed to make mandatory restitution of the $2,706,346.91 to the title insurance companies and to the client victims
.(1)
- Hayes was permanently disbarred by the Florida Supreme Court on August 24, 2010 and in his plea agreement agreed to never reapply or seek admission as an attorney in any state.
For the U.S. Attorney press release, see Title Lawyer Pleads Guilty To Stealing More Than $2,706,000 In Trust Funds.
(1) The Florida Bar's Clients' Security Fund, which was created to help reimburse clients for money they may have lost because of misappropriation or embezzlement by their attorneys, may also end up holding the bag in this ripoff as well.
For similar "attorney ripoff reimbursement funds" that sometimes help cover the financial mess created by the dishonest conduct of lawyers licensed in other states and Canada, see:
- Directory Of Lawyers' Funds For Client Protection (courtesy of the American Bar Association);
- Check the USA Client Protection Funds Map;
- Check the Canada Client Protection Funds Map.
Maps available courtesy of The National Client Protection Organization, Inc.
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