Projo 7 to 7 News Blog

PROVIDENCE -- The chief disciplinary counsel of the Rhode Island Supreme Court has filed ethics charges against Cranston lawyer Paul B. McCarthy in connection with a mortgage refinancing that he was not authorized to conduct in the State of New Jersey.

David D. Curtin, the disciplinary counsel, is asking the court's disciplinary board to hold a public hearing on the ethics complaint. The board could take action against McCarthy ranging from a censure to disbarment.

According to papers filed with the board, McCarthy is currently licensed to practice only in Rhode Island and Massachusetts but went to New Jersey last July to conduct a closing on a $320,000 mortgage refinancing for a mother and son who jointly own property in Newport.

Curtin alleges that when McCarthy arrived at the mother's home in New Jersey, the son was not present so the lawyer instructed his father to sign the son's name to the mortgage deed and other closing documents, which the father did. McCarthy then notarized the mortgage deed, indcating on the notary seal that the deed had been signed by the mother and son one day earlier in Cranston, Rhode island.

"Upon information and belief, respondent intentionally misrepresented where and when the documents had been signed in violation of his obligation as a notary public," Curtin alleges.

At the time of these events, McCarthy practiced law with Pasquale A. Scavitti III at 1225 Cranston St., Cranston. According to Curtin, McCarthy traveled to New Jersey to conduct the closing at Scavitti's direction. Scavitti was the designated settlement agent on the loan documents.

Last August, Scavitti, 46, of Cranston, admitted to stealing more than $2.5 million from homeowners who were refinancing or buying new homes. He has been disbarred but has still not been criminally charged. Law-enforcement authorities are investigating, Curtin said.

Curtin said today that McCarthy has not been implicated in any way with the missing funds.

 Tags  Cranston ethics charges lawyer

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