BOSTON—A Fairhaven attorney with an office in Taunton was charged today in federal court with diverting mortgage loan funds from real estate closings.
Craig J. Martin, 53, of Taunton, was charged in an Information with two counts of bank fraud.
The information alleges that Martin, in acting as a closing attorney for real estate transactions, received mortgage loan funds from lenders, which were to be held in his attorney trust account and used for the closings. As closing attorney, Martin was responsible for using the loan proceeds to pay off the existing mortgages on the properties. But instead of paying off the existing mortgages, Martin diverted at least $3,005,445 in mortgage funds to other purposes and falsified the loan closing documents to conceal his misappropriation of the funds.