Boston Feds: Attorney/Title Agent Pocketed Closing Cash Meant For Mortgage Payoffs, Seller On Three Deals, Then Issued Title Insurance To Victims

From the Office of the U.S. Attorney (Boston, Massachusetts):

• A Boston attorney was arraigned [] on wire fraud and money laundering charges arising out of a mortgage fraud scheme involving properties in Braintree and Malden. STUART H. SOJCHER, 57, of Leominster, was indicted by a federal grand jury on four counts of wire fraud and six counts of money laundering.

• According to the indictment, Sojcher submitted fraudulent loan documents to two mortgage lenders and then misappropriated most of the $1.3 million in proceeds rather than paying off the prior mortgages as directed by the lenders.

• The indictment alleges that Sojcher also agreed to perform a closing in connection with a legitimate property purchase, but pocketed the proceeds of that loan, along with the down payment made by the buyers, rather than paying the proceeds to the seller.

• To conceal his fraud, Sojcher issued title insurance on all three of the properties, thereby pocketing the commissions from his sale of the policies and lulling the new lenders, and the innocent homeowners, into believing that the previous mortgages had been paid off.(1)

For the U.S. Attorney press release, see Attorney Charged With Mortgage Fraud.

(1) If the allegations in this matter turn out to be true, the victims will be able to turn to the Massachusetts Clients' Security Board of the Supreme Judicial Court, which manages and distribute money collected from annual dues paid by members of the bar to members of the public who have sustained a financial loss caused by the dishonest conduct of a member of the bar acting as an attorney or a fiduciary.

For similar "attorney ripoff reimbursement funds" that 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 (now includes a listing for Canadian client protection funds, 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.