Projo 7 to 7 News Blog

NEWPORT, R.I. -- A lawyer who was disbarred six months ago for taking a half-million dollars from clients' real-estate proceeds has been charged by the state police for the alleged crimes.

Geoffrey A. Regan, who had owned MRD, Inc., and Foundation Title, LLC, a real-estate title company in Newport, was arraigned Friday in 2nd Division District Court, Newport, for three counts of unlawful appropriation over $1,000. Regan, 51, of 485 Aquidneck Ave., in Middletown, was released on $20,000 personal recognizance bail.

The state police said it was an investigation by the Supreme Court's chief disciplinary counsel that first brought the accusations to light.

In December 2008, chief disciplinary counsel David D. Curtin told The Journal that an investigation found that Regan had "converted $516,000 to his own use" from three real-estate closings. Regan agreed to give up his law license at the time, and Curtin turned the complaint over to the state police financial crimes unit for further investigation.

The state police focused on November 2008, when the proceeds from several closings at Regan's law office in Middletown allegedly never made it to their intended sources.

According to the state police, once the loans were closed, the new mortgage holders would wire money into an account held by Foundation Title, which acted as an agent for Stewart Title Guaranty Company. Foundation Title was entrusted to use the funds to pay off the prior mortgages held by various financial institutions. Regan secured title insurance policies on behalf of the properties.

Yet, the state police allege, Regan did not pay off about $516,000 in prior loans -- instead transferring the money into an account held by MRD, Inc. Stewart Title reimbursed the previous mortgage holders and, according to Curtin, cut their ties with Regan and helped with the Supreme Court's investigation.

Regan closed his law office and title company last December.

 Tags  middletown Newport RI real estate state police

Comments

Legal Eagle said:

You would think someone so smart as to make it through law school and open his own practice would be intelligent enough to know there is always a paper trail. I guess hard economic times, financial strain or insurmountable debt might have caused a lapse in judgement.

Link | June 6, 2009 11:17 AM
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