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Monday, February 11, 2013

Maryland Lawmakers Smack Shameless Colleague Over His Failed Efforts To Pass Law That Would Have Enabled Him To Reinstate R/E License Lost When Found Liable For Screwing Over Homeowners In Foreclosure


In Annapolis, Maryland, The Washington Post reports:

  • Maryland’s House of Delegates on Tuesday voted overwhelmingly to reprimand one of its own for working to insert language in a bill last year that would have directly benefited the lawmaker’s business as a real estate broker.

    Anne Arundel County Del. Tony McConkey “drafted, offered, lobbied and voted for” a provision that would have allowed him to reinstate his Maryland real-estate license while he still owes one of the state’s largest fines on record for having preyed on homeowners in foreclosureaccording to a legislative ethics report released Monday.

    McConkey is still a practicing real-estate broker in the District. His maneuvering on the bill, first reported last year by The Washington Post, also would have cut interest charges and processing fees that could have saved McConkey and a small handful of other delinquent Maryland brokers tens of thousands of dollars.

    The House voted 127-3 to adopt a resolution of reprimand, an admonishment just one step below the censure last year of veteran Prince George’s legislator Ulysses Currie for his failure to disclose outside consulting payments that became the subject of a federal investigation.

    Like Currie (D) before him, McConkey was asked to make a public apology. But unlike Currie’s somber tone, McConkey’s on Tuesday took on a combative one that colleagues on both sides of the aisle derided as something less than repentant.

    “I do humbly apologize, with great regret, that the ethics committee found that I acted improperly,” McConkey, said, “Not to provide an excuse, but if the body would indulge me, two minutes, just to provide an explanation...”

    McConkey, who had admitted “lobbying hard” for the bill to lawmakers investigating his actions, then went on to claim that colleagues had approved the measure with little interference from him. “People thought it was a good amendment,” he said. McConkey also suggested the legislature’s chief ethics adviser had cleared him of any wrongdoing.

    McConkey’s defense of what the legislative ethics committee had ruled indefensible left many lawmakers slack-jawed and prompted Baltimore Del. Shawn Tarrant (D) to walk off the House floor while McConkey was still speaking. “Does that sound like an apology?” he asked a colleague before getting up from his chair.

    The remarks also drew a terse rebuttal from Del. Brian K. McHale (D-Baltimore), co-chair of the ethics committee.

    “I feel compelled to address that,” McHale said. “Anyone with a clear mind… would have clearly known…that it was an act of misconduct to have presented that amendment and to have lobbied both houses to have it passed ... I would not want anyone to anyhow misinterpret the advice that the ethics counsel gave.”

    Three Republicans voted against the reprimand, including Del. Don Dwyer (R-Anne Arundel). Dwyer was the only lawmaker to speak on the resolution. He dryly said he was “honored that we all care so much about our oath that we’re going to do this to our fellow member.”

    Afterward Dwyer said he was not defending McConkey but voted no “to point out the hypocrisy ... We have lawyers who regularly pass legislation in their name, that they financially benefit from. It’s hypocrisy to do this selectively when we ought to be calling people out on a regular basis.”

    The other two no votes were Del. Glen Glass (R-Cecil) and Del. Neil Parrott (R-Washington). An aide to Glass said he felt there was not enough information to vote yes. Parrott did not immediately return a call seeking comment.

    Speaking to a reporter afterward, McConkey appeared bewildered at the House’s displeasure, and questioned the process by which he was investigated by colleagues. “They’re very secretive. It’s like the college of cardinals,” he said.

    In 2010, McConkey was ordered to pay $75,000 for what an administrative law judge called “fraudulent and unethical” behavior in real estate transactions. In one instance, the state found that McConkey promised to help a woman keep her home, then didn’t return her calls, bought her property in foreclosure and sought to evict her.

    Under the measure inserted into the bill last year by McConkey, he and others could have entered long-term payment plans to replenish a state fund used to compensate consumers who suffer financial losses as a result of actions by Maryland real estate professionals. Three of McConkey’s clients were each paid the maximum $25,000 from the fund,(1) making his debt to the state fund the largest of any real estate licensee in the five years preceding the 2010 decision.

    At the time McConkey sought to pass the measure last year, the Maryland Real Estate Commission said it had no evidence McConkey had paid any of the balance due.

    Under an agreement with the state, his license to sell homes in Maryland was suspended for one year. But commission officials said he would need to pay the entire amount due before seeking reinstatement of his license.

    McConkey’s measure would have halved the 12 percent interest rate on his debt to the state, and eliminated another 16-percent charge for processing the fee. It also would have allowed McConkey to regain his license if he began a payment plan.

    The measure was tucked into a bill that lawmakers said had to pass. Without it, the Real Estate Commission, which licenses the state’s 41,000 real estate brokers and other industry professionals, would have ceased to exist.

    Sen. Edward R. Reilly (R-Anne Arundel) filed the complaint last April after he said McConkey cursed at him in a heated exchange urging him to support the measure.

    Reilly said he took no pleasure in the result.

    “I’m never pleased with this kind of thing. This is a black mark on the entire General Assembly. The public has a poor attitude about elected officials in general, and this just supports the stereotype.”(2)
Source: Md. lawmaker reprimanded for bill that would have helped his real-estate practice.

(1) The Maryland Real Estate Commission Guaranty Fund is a special fund that, with limitations, compensates victims of ripoffs committed by Maryland-licensed real estate professionals..

(2) For more on McConkey, the reportedly twice-suspended real estate agent, once-disbarred lawyer, sale leaseback peddler and current member of the Maryland state legislature, see:

Monday, April 16, 2012

Lawmaker/Sale-Leaseback Peddler Slips Provision Into Pending Law Enabling Him To Recover R/E License w/out 1st Fully Paying Off Damages From Ripoffs

In Annapolis, Maryland, The Washington Post reports:

  • First, a Maryland senator was put on trial for helping a grocer who paid him consulting fees. Then, another co-sponsored a bill to fund a horse-racing track where his employer helped build a casino. Now, a Maryland delegate who sells homes in the District is close to making a law that could help him more than anyone else.


  • Even as ethics reform has been among the legislature’s bigger concerns this year, Del. Tony McConkey this week authored, voted for and saw passage by the House of Delegates of a measure that could help re­instate his Maryland real estate license, which he lost in 2010 after the state determined that he had preyed on homeowners in foreclosure.(1)


  • McConkey, an Anne Arundel County Republican, was ordered to pay $75,000 for what an administrative law judge called “fraudulent and unethical” behavior in real estate transactions. In one instance, the state found McConkey promised to help a woman keep her home, then didn’t return her calls, bought her property in foreclosure and sought to evict her.


  • Under a measure inserted into a bill this week by McConkey, he and others could enter long-term payment plans to replenish a state fund used to compensate consumers who suffer financial losses as a result of actions by Maryland real estate professionals.(2) Three of McConkey’s clients were paid a combined $75,000 from the fund in 2010, making his debt to the state fund the largest of any real estate licensee in the past five years.(3)


  • The Maryland Real Estate Commission says it has no evidence McConkey has paid any of the balance due. Under an agreement with the state, his license to sell homes in Maryland was suspended for one year. But commission officials said he would need to pay the entire amount due before seeking reinstatement of his license. McConkey is still a licensed real estate broker with Re/Max Supreme Properties in the District. He has a property listed for sale in Northeast.


  • In an interview Thursday — after the bill with McConkey’s little-noticed provision passed the House by a vote of 138-0 — the three-term lawmaker said he wasn’t sure if the measure would affect his case. “I don’t know if it’s retroactive or proactive or, I’m not sure,” McConkey said. “I’m not sure what the particulars are. . . . I’d have to look at it closer.”


  • Asked why he added the language to the bill, McConkey said it was to make the administration of the so-called Guaranty Fund clearer. “The code doesn’t really define the operation of the fund,” he said. He said the change also was intended to “encourage people to repay the fund.” He repeatedly declined to say whether he still owes the state.


  • In recent days, state lawyers testifying about other pending legislation have said that laws often apply retroactively unless stated otherwise. Given that, it is unclear if McCon­key should have voted for the measure, since it could affect how quickly he could seek to reinstate his license. “There is always an appearance of a conflict when lawmakers have dealings with legislation that affects their livelihoods,” said William G. Somerville, the legislature’s chief ethics counsel.


  • Somerville said he could not comment directly on McConkey’s amendment. In general, he said, the difference between the appearance of a conflict and an actual one often comes down to whether legislation could benefit a lawmaker’s employer, or a small group of people that includes the lawmaker.


  • In each of the past five years, fewer than 40 real estate professionals annually have been ordered to pay into the fund, and only three besides McConkey have been ordered to pay $25,000 or more.


  • With less than four days remaining in the General Assembly session, McConkey’s amendment has complicated the path of a bill that lawmakers say must pass. Without it, the RealEstate Commission, which licenses the state’s 41,000 real estate brokers and other industry professionals, would cease to exist July 1.


  • The commission opposed an earlier bill to let licensees set up repayment plans that was sponsored by one of McConkey’s Republican colleagues. Commission Executive Director Kathie Connelly said state regulators have viewed the requirement to pay debts in full before reapplying for a real estate license as a strong deterrent.


  • Those who have injured Maryland buyers and sellers and caused financial loss to them should bear the full burden of their misconduct,” she said. The bill must now go to a conference committee with the Senate. The legislature is scheduled to adjourn Monday night. The McConkey amendment came in a week when legislation that would tighten ethics requirements for lawmakers in Annapolis stagnated.(4)

Source: Delegate’s measure may help him get back real estate license.

(1) See The Annapolis Capital: Local delegate may have conflict of interest (McConkey amendment could help him pay penalty, restore real estate license).

  • In 2006 and 2007, according to Maryland Real Estate Commission records, McConkey contacted three women who lived in Annapolis, Baltimore and Pasadena, and offered to help them avoid foreclosure. He ended up taking their property or their money, according to the commission.


  • McConkey lost his license, which was the second time his real estate license had been revoked. He also was disbarred as an attorney in 1995.

For more specifics on the ripoffs of the three homeowners, see Maryland Real Estate Commission: Final Order - February 4, 2011.

(2) The Maryland Real Estate Commission Guaranty Fund is a special fund that, with limitations, compensates victims of ripoffs committed by Maryland-licensed real estate professionals.

(3) This is not the first time a state recovery fund covering the unscrupulous conduct of licensed real estate professionals was asked to cough up cash to compensate the victim of a sale leaseback foreclosure rescue ripoff perpetrated by a real estate agent. See: State Recovery Fund To Cough Up $116K+ To Compensate Elderly Victim Of Bogus Sale Leaseback Equity Stripping Scam Involving Licensed Real Estate Agent, where an 87-year-old woman who was cheated out of her home of 50 years was granted $116,972 from the State of Minnesota, reportedly the largest pay-out in recent memory from a fund for victims of unscrupulous real estate professionals in that state. In this case, a real estate agent licensed by the state of Minnesota played a significant role in the sale leaseback ripoff.

(4) For more on McConkey, the reportedly twice-suspended real estate agent, once-disbarred lawyer, sale leaseback peddler and current member of the Maryland state legislature (presumably in good standing), see:

Sunday, April 28, 2013

Maryland Lawmaker With Shady Past As Both A Disbarred Attorney & Real Estate Broker With Suspended License That Peddled Sale Leaseback Ripoffs To Financially Strapped Homeowners Now Faces Two Foreclosure Actions Himself


In Severna Park, Maryland, the Capital Gazette reports:

  • A Severna Park delegate who has bought and sold foreclosed homes for a living now faces two foreclosure suits himself.

    Del. Tony McConkey, R-Severna Park, and his wife face foreclosure on two properties they own together in legislative District 33, according to court filings.

    In a foreclosure suit filed in Anne Arundel County Circuit Court on April 10, First Home Mortgage Corp. alleges the three-term Republican and his wife defaulted on a $600,000 loan for a house they’ve owned since at least 2007 on the 200 block of Cypress Creek Road in Severna Park. A notice claims the McConkeys defaulted in November 2011 and didn’t make a mortgage payment from October 2011 to August 2012. At that time, the notice says, they owed more than $41,000.

    In a separate suit filed last year, Fremont Investment & Loan claims the couple defaulted on a $360,000 loan for a home they purchased in 2006 on the 100 block of Cedar Road in Severna Park. A notice claims the McConkeys defaulted on that loan in October 2011 and didn’t make a mortgage payment through July 2012. At that time, the notice says, they owed more than $28,000.

    McConkey did not return calls or emails for comment and it is unclear if he has rectified the situation recently.

    The two suits add to a list of legal, business and other problems McConkey has faced during his time in office.
***
  • Earlier this year, McConkey was reprimanded and forced to apologize before the House of Delegates after the Joint Committee on Legislative Ethics determined that in 2012 he tried to rally support for a bill that would have made it easier for him to pay back $75,000 he owes the state’s Real Estate Guaranty Fund.(1)

    In 2011, an administrative judge ordered McConkey to pay that money, the maximum amount allowed under law, for three incidents in which he allegedly defrauded customers.

    The state found that McConkey, in one of the three instances, promised to help a woman keep her home, then didn’t return her calls, bought her property in foreclosure and sought to evict her.

    McConkey’s real estate license has been suspended until he reimburses the guaranty fund in full, including all interest and administrative charges.

    According to the ethics committee’s February report, McConkey’s debt was “the largest of any real estate licensee for the past five years and makes him one of only seven individuals from fiscal 2006 through 2011 who have been ordered to pay the statutory maximum.”

    McConkey has maintained his innocence in the cases but entered the civil settlement freely, according to Maryland Real Estate Commission records.

    The Severna Park delegate has found himself in hot water several other times over the years, both during his tenure as a delegate, which began in 2002, and before taking office.

    Before becoming a delegate, The Capital revealed problems McConkey had failed to mention on the campaign trail.

    He was given probation before judgment on a 1992 battery charge, but explained that the case was a dispute between a landlord and a tenant that got out of hand.

    McConkey was voluntarily disbarred as an attorney in 1995 for misappropriation of funds, but said he never had any clients other than himself and gave up his career because he was broke and depressed over a bad business deal.

    In 2005, McConkey was sued by a Crofton man who alleged McConkey scammed him and his wife out of their house. The case was settled in 2006 when McConkey agreed to sell the house, pay off the mortgage and pay the man and his wife $12,516 each.

    But the case was reopened in 2007 when the man alleged the Severna Park Republican failed to pay more than $12,500 from the sale of a home.

    That case was settled out of court in 2008, and details of the settlement were sealed as part of a confidential agreement, The Capital reported. McConkey declined to comment on the settlement.

Monday, November 1, 2010

MD Lawmaker Takes 1-Year R/E License Loss To Resolve Claims Arising From Running Sale Leaseback Racket; Victims Seek Recovery From State Guaranty Fund

In Anne Arundel County, Maryland, WBAL-TV Channel 11 reports:

  • A Maryland state delegate on Monday struck a deal instead of fighting a state commission challenging his license to sell real estate. Under the settlement, the state will not revoke Delegate Tony McConkey's real estate license, but the license is suspended for a year.

  • McConkey, R-Anne Arundel County, said he made mistakes, but a four-year battle is finally behind him. He called the settlement with the Maryland Real Estate Commission a victory.

***

  • McConkey admitted he had a practice of contacting homeowners on the verge of losing their homes, offered to save them from foreclosure and willfully violated the Protection of Homeowners in Foreclosure Act -- a law he voted for in 2005 and 2008.

  • He also admitted to engaging in conduct that demonstrates incompetency and improper dealings. McConkey's license will be suspended for a year. To get it back, he'll have to reapply -- but there is no guarantee it will be reinstated.(1)

  • "Mr. McConkey will no longer be able to victimize people. This could have drug out for two years in appeals, and the state's obligation was to Maryland citizens, not just my clients," said former homeowners' attorney Mike Morin.

For more, see Md. Delegate's Real Estate License Suspended (Tony McConkey Admits To Engaging In Bad Practices).

For earlier stories reporting on McConkey's foreclosure rescue 'handiwork', see:

(1) Reportedly, three of the victims that lawmaker McConkey allegedly screwed over are each seeking $25,000 from the Maryland Real Estate Commission's Guaranty Fund, which covers qualified claims up to $25,000 for losses due to screw-ups by Maryland-licensed real estate agents, or unlicensed employees of Maryland real estate licensees.

Thursday, April 30, 2009

Maryland Lawmaker Accused In Equity Stripping Foreclosure Rescue Scam Tells Jury He Was "Doing The Lord's Work"

In Anne Arundel County, Maryland, The Baltimore Sun reports:

  • A state delegate from Anne Arundel County, who is being sued for damages by a Pasadena woman who claims he tricked her into signing over her home, told a jury Wednesday that he was "doing the Lord's work." In his closing arguments, Del. Tony McConkey, a Severna Park Republican and real estate agent who is a law school graduate and represented himself in court, said that he was trying to help the woman save her home from foreclosure and that he never "knowingly and willfully broke the law."

  • Attorneys for Teresa Milligan asked the jury to award her $1.5 million for damages for the loss of her condominium and pain and suffering. "This is the American Dream we're talking about," Peter A. Holland said in his closing arguments. "She is always going to feel the humility, the indignity and the shame of this."

  • Holland is representing Milligan with Michael Morin. Milligan, a mother of three, has been living with a brother since losing her home, according to court testimony. Anne Arundel County Circuit Judge D. William Simpson ruled in September that McConkey had acted wrongly in transfering ownership of the condominium to himself.(1) The jury began deliberations Wednesday evening and is expected to reach a verdict Thursday morning.

Source: Delegate denies tricking woman out of home (McConkey says home transfer was 'doing the Lord's work').

See also, WBAL-TV Channel 11: Delegate Defends Self In Mortgage Trial (McConkey Accused In Foreclosure Rescue Scheme).

(1) Another recent Baltimore Sun story reports that Milligan's civil suit against McConkey alleges "foreclosure rescue fraud," a violation of a homeowner protection law that he voted for in 2005. In January 2006, Milligan said, McConkey offered to help her save her condo from foreclosure and to help her obtain a loan to make payments, according to court testimony. Milligan signed ownership of her condominium over to McConkey, but then called him within the allotted three days to say that she had changed her mind, according to her testimony in Anne Arundel County Circuit Judge D. William Simpson's courtroom Tuesday. Eight months later, McConkey filed the original contract that Milligan had signed and began the paperwork to have her removed from the home, according to court documents.

Monday, August 31, 2009

Maryland Lawmaker To Cough Up $109K For Violating State Law Regulating Sale Leaseback Foreclosure Rescue Scams

In Anne Arundel County, Maryland, The Capital Gazette reports:

  • A state lawmaker from Severna Park who lost a lawsuit earlier this year must pay $109,000 in damages and attorney fees, a county judge has ruled. That is 10 times more than what a jury ordered Del. Tony McConkey to pay in April after determining that the Republican knowingly violated a state law designed to protect homeowners in foreclosure. After hearing numerous motions July 27, Circuit Court Judge D. William Simpson decided that McConkey owes his victim $34,000 - rather than the $10,800 ordered by the jury - and owes her attorneys $75,000 in legal fees.(1)

  • Despite the drastic increase in the judgment, McConkey yesterday continued to praise the jury's verdict, noting that it did not believe he was perpetrating a foreclosure rescue scam or otherwise trying to defraud Teresa Milligan of her money. "I still feel vindicated," said McConkey, pointing to how the jury found that he did not breach his fiduciary duty to Milligan.(2)

For more, see Lawmaker must pay $109K judgment (Judge increases damages, tacks on attorney fees for McConkey).

(1) Attorney Michael Morin and Milligan's other attorney, Peter A. Holland, argued in court on July 27 that McConkey owed them $126,061 in legal fees for more than 450 hours of work. Judge Simpson said their rates - $275 an hour for Morin and $300 for Holland - were reasonable, but that some of the work they performed was on counts on which the jury found in favor of McConkey. He cut the legal fees to $75,000.

(2) "You have to be remarkably self-centered - virtually delusional - to see a $109,000 judgment as a vindication," attorney Michael Morin said. "Ms. Milligan will be paid," he added.

Monday, May 4, 2009

Maryland Lawmaker Accused Of Scamming Homeowner In Foreclosure Dodges Bullet As Unfavorable Jury Verdict Limits Liability To $11K

In Anne Arundel County, Maryland, The Baltimore Sun reports:

  • An Anne Arundel County jury ruled Thursday that a state delegate will have to pay $11,000 to a woman who signed her home over to him, but that he did not intentionally defraud her. Del. Tony McConkey, a Severna Park Republican, said that the ruling was "a complete vindication." "It couldn't have turned out any better," he said.

  • In September, Anne Arundel Circuit Judge D. William Simpson found that McConkey, a real estate agent, violated a state law intended to protect homeowners in foreclosure in his dealings with Theresa Milligan over her Pasadena condominium. The jury found that McConkey should pay Milligan $28,000 for the loss of her home and $6,000 in other damages. But they also ruled that Milligan should pay $23,000 to McConkey for breaking her contract with him. Milligan's attorneys, Peter A. Holland and Michael Morin, had asked the jury to grant her as much as $1.5 million for the loss of the home and emotional distress. The single mother of three, who has been staying with her brother since losing the condominium, is "devastated" by the ruling, Morin said.(1)

Source: $11,000 awarded in McConkey case.

See also, WBAL-TV Channel 11: Jury Decides Against Delegate In Mortgage Case.

(1) According to this story, the case remains open as the homeowner's attorneys said they plan to ask the court to make McConkey pay their attorney fees. Attorney Michael Morin said they also plan to argue Milligan should not have to pay McConkey back the $23,200 because it was part of an illegal contract.

Monday, November 24, 2008

Maryland State Lawmaker's Bankruptcy Filing Stalls Completion Of Sale Leaseback, Foreclosure Rescue Court Case

In Annapolis, Maryland, The Capital reports:

  • Del. Tony McConkey filed for bankruptcy [Monday], delaying a jury trial that was set to begin today in a civil case in which he is accused of scamming a woman out of her home. A judge ruled in September that the Severna Park Republican violated state law when he bought the home of a Pasadena woman facing foreclosure.

  • The jury was set to rule on additional allegations of fraud, misrepresentation and determine final damages, but Mr. McConkey's bankruptcy filing puts a halt to that process. He filed for bankruptcy under Chapter 7 yesterday in U.S. Bankruptcy Court of Maryland.

***

  • Circuit Court Judge D. William Sampson ruled in September that Mr. McConkey violated the Protection of Homeowners in Foreclosure Act [Sec. 7-301 to 7-325] in 2006 by acting as a foreclosure consultant to Ms. [Teresa] Milligan and then buying her home. Judge Sampson declared Mr. McConkey's deed to the house null and void, but did not decide how much Ms. Milligan should receive in damages.

For more, see McConkey's bankruptcy filing delays foreclosure case.

See also, WBAL-TV Channel 11: Delegate Facing Lawsuit Files For Bankruptcy (Delegate Accused In Foreclosure Fraud Scheme).