Sticky-Fingered Attorney Cops Guilty Plea For Pocketing $2M+ In Closing Proceeds Meant To Pay Off Existing Mortgages On Sold, Refinanced Real Estate
From the Office of the U.S. Attorney (Montgomery, Alabama):
- On March 22, 2012, James Boyd Douglas, Jr., who previously practiced law in Lee County, Alabama, pled guilty to engaging in a multimillion-dollar mortgage fraud scheme, announced the United States Attorney’s Office in the Middle District of Alabama.
- Between January 2005 and September 23, 2011, Douglas handled numerous real estate closings and real estate refinancing transactions on behalf of his clients. As part of the real estate closings, Douglas received the proceeds of new mortgage loans.
- Douglas was supposed to use the proceeds from new mortgage loans to repay the old mortgage loans on the properties that were being sold or refinanced. But instead of using that money to repay the old loans, Douglas embezzled more than $2,000,000 from his clients’ real estate closings over approximately six
years.(1)
For the U.S. Attorney press release, see Lee County Attorney Pleads Guilty to Mortgage Fraud Scheme.
(1) The Client Security Fund of the Alabama State Bar was established to reimburse clients who have suffered a loss due to misappropriation or embezzlement by an Alabama-licensed attorney.
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 (now includes Canadian recovery 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.
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