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Ex-Lawyer Accused of Tax Fraud Involving Beach Homes
The National Law Journal
Former Massachusetts lawyer John McBride could face more than three decades in prison on bank and tax fraud charges stemming from alleged schemes to keep two homes in elite coastal towns despite more than $650,000 in federal tax liens.
A District of Massachusetts indictment unsealed on Monday charges McBride, 64, with bank fraud and endeavoring to obstruct and impede the due administration of the tax laws.
McBride, who began practicing in 1974, is formerly of Marblehead on the Massachusetts North Shore and Edgartown in Martha’s Vineyard. In May 2007, the Supreme Judicial Court of Massachusetts disbarred him for intentionally misappropriating client funds and other violations of the professional conduct rules.
As beach season kicks into high gear, McBride faces the prospect of hard time in a much less scenic venue. The bank charge carries a maximum sentence of up to 30 years in prison and a $1 million fine. For the tax charge, he could be sentenced to up to three years in prison and a $250,000 fine.
According to the indictment, McBride engaged in several fraudulent gambits to dispose of the Internal Revenue Service tax lien. Some involved a $288,000 loan secured by the Marblehead property. In early 2008, the document says, McBride caused six fraudulent certificates of federal tax lien release to be filed in records about that property.
In March 2008, the indictment says, McBride unsuccessfully tried to implement a similar scheme in Edgartown. He attempted to record two fraudulent tax lien release certificates. Then, in 2011, he tried to obtain a $387,000 reverse mortgage loan from Bank of America Corp., by offering the Edgartown property as security.
During the application process, McBride allegedly gave false information about the liens on the property and the status of his bankruptcy proceeding. He also caused a fraudulent discharge of mortgage to be filed, which would have discharged more than $700,000 on the property.
The Boston U.S. attorney’s office declined to comment. McBride's lawyer Charles McGinty of the Boston federal public defender office did not respond to a requests for comment.
Sheri Qualters can be contacted at firstname.lastname@example.org.