A Pennsylvania man, formerly an attorney practicing in Boston, was convicted of mortgage fraud in federal court last week.

Charles R. Sammon, 37, of West Pittston, Penn., pleaded guilty to 13 counts of wire fraud, mail fraud and money laundering, all in connection with the mortgage fraud scheme that occurred in 2006 and 2007.

Sammon participated in at least 13 fraudulent real estate transactions involving triple-decker apartment buildings in various sections of Boston, including Dorchester, Roxbury and Jamaica Plain. For eight of those transactions, Sammon served as the real estate closing attorney representing the mortgage lender. For the other five, Sammon participated as the seller of the property.

Sammon recruited straw buyers by promising to pay them as much as $40,000 per transaction. Many of the payments to buyers were made directly from Sammon’s law firm bank account on transactions for which he was the closing attorney. Sammon also received some of the loan proceeds in addition to his legal fees. In one transaction, he received more than $50,000.

All 13 loans went into default, and all the properties were sold at foreclosure or through a short sale, resulting in combined losses to the lenders of more than $2.5 million.

Sammon faces a maximum sentence of 20 years in prison as well as potentially millions in fines. Sentencing is scheduled for Feb. 19.

Former Boston Attorney Convicted Of Mortgage Fraud

by Banker & Tradesman time to read: 1 min
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