The following is a press release from the office of Attorney General Martha Coakley. A Middlesex Grand Jury returned indictments against a former Somerville real estate attorney in connection with allegedly making false statements on mortgage applications and associated documents and using the funds secured from the loans for his own purposes, rather than paying off existing loans as directed by the new lenders. Kevin Carey, age 48, of Middleboro, is charged with Larceny over $250 (eight counts) and Willfully Making a False Statement Regarding Financial Condition or Assets (seven counts). Authorities allege that, 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 allegedly 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. Title insurance policies protect lenders in the event that there are defects in the title of the property. Authorities allege that on various occasions between April 2002 through September 2004, Carey performed the functions of closing attorney on mortgage loans on each of the properties involved. Authorities allege that Carey “stacked” three mortgages on a home in Medfor ...
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