Disbarred Lawyer Sentenced for Bank Fraud in Massachusetts
BOSTON – In a shocking turn of events, a Boston area attorney has been sentenced to federal prison for his involvement in a sprawling bank fraud scheme. John C. McBride, 66, was handed down a two-year prison sentence and two years of supervised release, with restitution to be determined at a later date.
According to court documents, McBride, a disbarred criminal defense lawyer, recorded six fraudulent federal tax lien releases against his Marblehead home in early 2008. He prepared the releases himself, without the knowledge or authorization of the IRS, and forged the signatures of IRS officials on them. The scheme allowed McBride to obtain a $288,000 loan secured by that property, depriving the IRS of its nearly $700,000 secured interest.
McBride’s crimes did not stop there. In March 2008, he attempted to record two similar fraudulent tax lien releases against a second home he owned in Edgartown, on Martha’s Vineyard. He also attempted to obtain a $387,000 reverse mortgage loan from Bank of America in 2011, falsely telling the bank that there were no liens on the Edgartown property and that he was not then in bankruptcy.
As part of his scheme, McBride prepared and recorded a fraudulent and unauthorized discharge of mortgage, which purported to discharge a more than $700,000 existing mortgage on his Edgartown property. Bank of America discovered that the discharge was fraudulent before the loan closed, and no funds were disbursed to McBride.
The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit. United States Attorney Carmen M. Ortiz, Robert E. O’Malley, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Office of Investigations, New York Field Office (TIGTA), Vincent B. Lisi, Special Agent Charge of Federal Bureau of Investigation, Boston Field Division, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today.
McBride’s sentencing marks the end of a long and complex case, which has left many in the community reeling. The case serves as a stark reminder of the importance of integrity and transparency in the legal profession.
The defendants’ crimes have caused widespread harm, and the Grimy Times will continue to follow this story and bring you updates as more information becomes available.
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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