Residential Mortgage Fraud Explained

Summary

Residential mortgage fraud involves misleading practices like fraudulent signing and deed theft. In Massachusetts, self-directed IRA owners can manage investments but must avoid self-dealing. Tiernan and Fagan engaged in self-dealing by indebting the plaintiff and transferring property titles fraudulently. Legal precedents such as Kight v. Miller highlight fraud in execution. Federal and state laws, including the Securities Exchange Act and Massachusetts Uniform Securities Act, prohibit deceptive practices in securities transactions. If you suspect fraud, consult a legal professional for guidance.

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- Residential Mortgage Fraud and Fraud in Execution: - Plaintiff was misled into signing documents by her advisor, Ralph Grieco, and three other parties: James Tiernan, Richard Fagan, and their custodian under their self-directing IRA, Pensco Trust Company. She believed these documents were for a newly formed partnership to pay the mortgage. - Instead, Plaintiff unknowingly signed over the deeds to her divorce-awarded properties, * Brayton Woods, Rehoboth MA (the family home), and * Oak Street, Norton (her childhood home).
Residential Mortgage Fraud and Fraud in Execution:
*. Misleading Documents:
- Plaintiff was deceived by advisor Ralph Grieco and parties James Tiernan, Richard Fagan, and Pensco Trust Company into signing documents under false pretenses.
*. Unauthorized Deed Transfer:
- Plaintiff unknowingly transferred deeds of her properties at * Brayton Woods, Rehoboth MA, and * Oak Street, Norton.
*. Ex-Husband’s Deception:
- Plaintiff’s ex-husband, in Chapter * bankruptcy, was similarly misled into transferring his awarded properties.
*. Debt Purchase and Indebtedness:
- Tiernan and Fagan borrowed $*,* from Pensco Trust Company to purchase Plaintiff's ex-husband's debt, indebting Plaintiff an additional $*,*.
*. Fraudulent Note and Mortgage:
- Tiernan and Fagan made Plaintiff sign a Note and Mortgage as the debtor for funds she never received, constituting fraudulent self-dealing.
*. Legal Precedents:
- Kight v. Miller: Fraud in signing documents.
- Provident Co-Operative Bank v. Jameson and Atlantic Financial Corp. v. Galvin: Fraud in the nature of the documents signed.
- Restatement (Second) of Contracts § *: Fraud in factum makes the document void.
*. Lack of Consideration:
- Plaintiff received no consideration and had an alternative remedy of paying the original creditor $*,*.
*. Illegal Contract Terms:
- Contract is void ab initio due to misrepresentation and lack of a meeting of the minds.
- Violations of public policy under the Dodd-Frank Act and Massachusetts usury laws.
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- Plaintiff’s ex-husband, also in Chapter * bankruptcy, was similarly deceived and misled into transferring his divorce-awarded properties. - Defendants James Tiernan and Richard Fagan, debt buyers under the FDCPA, borrowed $*,* from Pensco Trust Company to purchase Plaintiff's ex-husband's debt for $*,*, indebting Plaintiff an additional $*,*. - Tiernan and Fagan made Plaintiff sign a Note and Mortgage as the Only send from , "Tiernan and Fagan made Plaintiff sign a Note and Mortgage as the" onward Sure thing, Karen. Here’s the continuation:
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Tiernan and Fagan made Plaintiff sign a Note and Mortgage as the debtor for funds she never received. This fraudulent self-dealing was likely unknown to Pensco Trust Company at the time. Tiernan and Fagan committed deed theft by tricking Plaintiff into signing documents under false pretenses.
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Tiernan and Fagan made Plaintiff sign a Note and Mortgage as the debtor for funds she never received. This fraudulent self-dealing was likely unknown to Pensco Trust Company at the time. Tiernan and Fagan committed deed theft by tricking Plaintiff into signing documents under false pretenses. - Similar to Kight v. Miller, 7th Dist. Mahoning No. * MA *, *-Ohio-*, where the court found a genuine issue of material fact regarding fraud in the execution, Plaintiff presents evidence of being tricked into signing documents she did not intend to sign. - As stated in Kight v. Miller, "Fraud in the execution exists where the charging party engaged in some trick or device to procure the signature of the party to be charged on an instrument
Case Rating: *
Residential Mortgage Fraud and Fraud in Execution:
- Fraudulent Signing: Plaintiff was misled into signing documents by her advisor, Ralph Grieco, and three other parties: James Tiernan, Richard Fagan, and their custodian under their self-directing IRA, Pensco Trust Company. She believed these documents were for a newly formed partnership to pay the mortgage.
- Deed Theft: Instead, Plaintiff unknowingly signed over the deeds to her divorce-awarded properties, * Brayton Woods, Rehoboth MA (the family home), and * Oak Street, Norton (her childhood home).
- Ex-Husband's Deception: Plaintiff’s ex-husband, also in Chapter * bankruptcy, was similarly deceived and misled into transferring his divorce-awarded properties.
- Debt Acquisition: Defendants James Tiernan and Richard Fagan, debt buyers under the FDCPA, borrowed $*,* from Pensco Trust Company to purchase Plaintiff's ex-husband's debt for $*,*, indebting Plaintiff an additional $*,*.
- Fraudulent Note and Mortgage: Tiernan and Fagan made Plaintiff sign a Note and Mortgage as the debtor for funds she never received.Legal Precedents:
- Kight v. Miller: The court found a genuine issue of material fact regarding fraud in the execution when the party was tricked into signing documents they did not intend to sign.
- Provident Co-Operative Bank v. James P. Jameson et al.: Fraud in the execution occurs when a party is misled about the nature of the document being signed, obtaining consent under false pretenses.
- Atlantic Financial Corp. v. Galvin: Reiterated that fraud in the factum is present when a person is deceived about the nature of the document being signed.
Contract Invalidity:
- No Consideration: Plaintiff received no consideration for signing these documents.
- Alternative Remedy: Plaintiff had over $*,* in equity and could have paid the original creditor, Bristol County Savings Bank, $*,*.
- Void Contract: The contract is void ab initio due to lack of a meeting of the minds and misrepresentation of the document's nature.
- Public Policy Violation: The contract violates the Dodd-Frank Act, which requires private mortgage loans to be qualified by a HUD counselor.
- Usury Laws and Violations: The loan had an
which she did not intend to give, such as where there is surreptitious substitution of one paper for another at signing." - In Provident Co-Operative Bank v. James P. Jameson et al., * Mass. * (*), the Massachusetts Supreme Judicial Court held that fraud in the execution occurs when a party is misled as tothe very nature of the document being signed, and therefore, the party's consent is obtained under false pretenses. - In Atlantic Financial Corp. v. Galvin, * Mass. * (*), the Massachusetts Supreme Judicial Court reiterated that fraud in the factum is present when a person is deceived as to the very nature of the document being signed, and therefore, the person’s consent is obtained under false pretenses. - According to Restatement (Second) of Contracts § *,
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Residential Mortgage Fraud and Fraud in Execution:
Fraudulent Signing:
- Plaintiff was misled into signing documents by her advisor, Ralph Grieco, and three other parties: James Tiernan, Richard Fagan, and their custodian under their self-directing IRA, Pensco Trust Company. She believed these documents were for a newly formed partnership to pay the mortgage.
Deed Theft:
- Instead, Plaintiff unknowingly signed over the deeds to her divorce-awarded properties, * Brayton Woods, Rehoboth MA (the family home), and * Oak Street, Norton (her childhood home).
Ex-Husband's Deception:
- Plaintiff’s ex-husband, also in Chapter * bankruptcy, was similarly deceived and misled into transferring his divorce-awarded properties.
Debt Acquisition:
- Defendants James Tiernan and Richard Fagan, debt buyers under the FDCPA, borrowed $*,* from Pensco Trust Company to purchase Plaintiff's ex-husband's debt for $*,*, indebting Plaintiff an additional $*,*.
Fraudulent Note and Mortgage:
- Tiernan and Fagan made Plaintiff sign a Noteand Mortgage as the debtor for funds she never received. This fraudulent self-dealing was likely unknown to Pensco Trust Company at the time. Tiernan and Fagan committed deed theft by tricking Plaintiff into signing documents under false pretenses.
Legal Precedents:
- Kight v. Miller: The court found a genuine issue of material fact regarding fraud in the execution when the party was tricked into signing documents they did not intend to sign.
- Provident Co-Operative Bank v. James P. Jameson et al.: Fraud in the execution occurs when a party is misled about the nature of the document being signed, obtaining consent under false pretenses.
- Atlantic Financial Corp. v. Galvin: Reiterated that fraud in the factum is present when a person is deceived about the nature of the document being signed.
Contract Invalidity:
- No Consideration: Plaintiff received no consideration for signing these documents.
- Alternative Remedy: Plaintiff had over $*,* in equity and could have paid the original creditor, Bristol County Savings Bank, $*,*.
- Void Contract: The contract is void ab initio due to lack of a meeting of the minds and misrepresentation of the
Comment c, and Farnsworth § *.* at *-*, fraud in the factum renders a document void because the party did not know the true nature of the document being signed. - In Plaintiff’s case, she received no consideration for signing these documents. In addition she had another remedy of which she was not infomed - with over $*,* in equity to should could have elected to pay james' s debt to the orginal creditor, Bristol County Savings bank of $*,*. - Plaintiff's other property, * Oak street which they included unnecessarily as a collatoral property held a small mortgage payment by her late father, who too was coerced into signing a forbearance agreement. In furtheranc ethe contract, itself, is illegal in violation of mortgae fraud or misrepresentaions invloved in a mortgae contract. Plaintiff’s divorce decree awarded her the property free from mortgage payments for four years, making it unreasonable for her to sign for a debt she did not owe. - Plaintiff's advisor charged her a
Residential Mortgage Fraud and Fraud in Execution:
Fraudulent Signing
- Plaintiff was misled into signing documents by her advisor, Ralph Grieco, and three other parties: James Tiernan, Richard Fagan, and their custodian under their self-directing IRA, Pensco Trust Company. She believed these documents were for a newly formed partnership to pay the mortgage.
Deed Theft
- Instead, Plaintiff unknowingly signed over the deeds to her divorce-awarded properties, * Brayton Woods, Rehoboth MA (the family home), and * Oak Street, Norton (her childhood home).
Ex-Husband's Deception
- Plaintiff’s ex-husband, also in Chapter * bankruptcy, was similarly deceived and misled into transferring his divorce-awarded properties.
Debt Acquisition
- Defendants James Tiernan and Richard Fagan, debt buyers under the FDCPA, borrowed $*,* from Pensco Trust Company to purchase Plaintiff's ex-husband's debt for $*,*, indebting Plaintiff an additional $*,*.
Fraudulent Note and Mortgage
- Tiernan and Fagan made Plaintiff sign a Note and Mortgage as the debtor for funds she never received.