Attorney Involved in Fraud Sentenced
A Connecticut attorney involved in a mortgage scam is facing 21 months of imprisonment following his recent sentencing in U.S. District Court.
The attorney, David Kinney, also will face two years of supervised release after his imprisonment for participating in a mortgage fraud scam and for making false statements to federal law enforcement, according to the Federal Bureau of Investigation.
In addition, Kinney as part of his sentence was ordered to pay more than $500,000 in restitution and to forfeit more than $65,000.
According to court documents and statements made in court, Kinney participated in a mortgage fraud conspiracy in 2006 and 2007 by acting as the settlement agent in connection with fraudulent real estate transactions in New London County.
As part of the scheme, Kinney submitted, or caused to be submitted, materially false HUD-1 settlement statements to lenders. In certain cases, Kinney released a disbursement check before he had received the downpayment listed on the HUD-1.
On Nov. 5, 2007, in connection with the investigation of this matter, FBI special agents served Kinney a subpoena at his New Haven office. On that date, Kinney told agents that he had never given anyone a closing check prior to receiving the downpayment money in connection with real estate closings that he handled when, in fact, he had done so on multiple occasions.
On Nov. 9, 2011, Kinney pleaded guilty to one count of conspiracy and one count of making a false statement.
Kinney’s sentencing is part of efforts by President Obama’s Financial Fraud Enforcement Task Force.