Florida Supreme Court Disbars Two Palm Beach Attorneys
Two Palm Beach County attorneys have been disbarred in unrelated cases following allegations of mortgage fraud and money laundering.
Theodore T. Tarone Jr., a former partner at Stromberg & Tarone in Palm Beach, pleaded guilty to conspiracy to commit mail fraud on 17 real estate closings.
Tarone's scam involved preparing two HUD-1 settlement statements for each closing after fraudulent mortgage loan applications were submitted to lenders, according to the referee's report by Broward Circuit Judge Barbara McCarthy.
"One HUD-1 contained the accurate sales price. The other HUD-1 contained the inflated sales price as contained on the fraudulent mortgage application. Respondent conducted the closing and mailed the false HUD-1 statement to the lender," she found.
Tarone was sentenced March 29 in federal court to 18 months in prison and ordered to pay restitution of nearly $3.5 million.
Scott F. Saidel, a solo practitioner in Boca Raton, pleaded guilty in federal court to conspiracy to commit money laundering, obstruct justice and tamper with a witness for helping Kim Rothstein hide jewels after her husband's Ponzi scheme collapsed. Saidel was sentenced by U.S. District Judge Robin Rosenbaum in Fort Lauderdale to three years in prison for handling money flowing from ex-law firm chairman Scott Rothstein's fraud.
In other lawyer disciplinary action by the Florida Supreme Court, Thomas W. Austin Jr. of Wilton Manors was suspended for 91 days. He owned and operated a mortgage loan modification business called the Protection Law Center. He entered a conditional guilty plea to Florida Bar findings that his employees improperly solicited potential clients. Austin was accused of failing to properly supervise nonlawyer employees who at times guaranteed loan modifications and failing to adequately communicate with clients when he was retained.
Bennett L. Grossman of Fort Lauderdale got a 90-day suspension for sharing fees with a nonlawyer who he didn't supervise. He opened a law practice in 2011, and a former co-worker who was a paralegal opened an executive law center simultaneously. The paralegal referred clients to Grossman, who agreed to represent all clients that hired the law center. In exchange, he was paid $3,500 a month.
Another referral scheme involved Paul R. Kennedy of Delray Beach, who was suspended for 18 months. Kennedy accepted more than 1,000 referrals from a nonlawyer entity in timeshare resale fraud cases. Kennedy subsequently realized some referrals were obtained via prohibited solicitations. Employees of the referring agency improperly guaranteed successful results. Kennedy's performance resulted in more than 50 Bar complaints.
Sarah E. Gumz of Fort Lauderdale received a 30-day suspension and three years probation. She was conditionally admitted to the bar in June 2011 based on alcohol abuse issues. She reported to The Bar in June 2012 that she was arrested for misdemeanor drunken driving the previous month.