Legal Ethics

Lawyer for Metropolitan Money Store Pleads Guilty in Mortgage Scheme

By Debra Cassens Weiss

Sep 4, 2008, 11:56 am CST

A Maryland lawyer who did some legal work for the Metropolitan Money Store pleaded guilty yesterday in connection with a mortgage fraud scheme in which homeowners were falsely promised help in avoiding foreclosure.

Richard Allison of Camp Springs, also a Census Bureau employee, pleaded guilty yesterday to conspiracy to commit mail and wire fraud, the Washington Post reports. He was accused of being paid to serve as a straw buyer in two transactions that were part of the conspiracy. He faces up to 30 years in prison and a $1 million fine.

Under the fraud scheme, struggling homeowners were told to sign over title to their property to straw purchasers for a year so their credit ratings could be improved and they would obtain more favorable loans, according to the plea agreement. The properties were then used to submit fraudulent loan applications and obtain inflated loans, according to a press release detailing the agreement. Some proceeds were converted to the conspiring corporate officers’ personal use, the press release says.

Allison began doing some legal work for Metropolitan and two other businesses in December 2005. A few months later, he agreed to serve as a straw purchaser and obtain mortgage loans in his name for two properties, the story says. He received $10,000 for each transaction.