Former Massachusetts Lawyer Pleads Guilty to Mortgage Fraud

Kevin Carey, a former Somerville real estate attorney from Middleboro, Mass., pleaded guilty in Middlesex Superior Court to charges related to making false statements on mortgage applications and using the funds secured from the loans for his own purposes, rather than paying off existing loans. According to Massachusetts attorney general Martha Coakley, while practicing as a real estate lawyer in Somerville and Medford, Carey engaged in a scheme called "mortgage stacking" on four residential properties he or his family members owned. The scheme involved serially refinancing the loans on these properties, without paying off the existing loans. Carey was also the agent for a New England title insurance company, which allowed him to issue title insurance policies on mortgage transactions he processed. Sentencing is scheduled for Nov. 6.