David B. Fein, United States Attorney for the District of Connecticut, has announced that David Kinney, a licensed attorney with offices located in New Haven, Conn. Has pleaded guilty before Senior United States District Judge Alfred V. Covello in Hartford, Conn. to one count of conspiracy and one count of making a false statement. Kinney faces a maximum term of imprisonment of 10 years.
According to court documents and statements made in court, in 2006 and 2007, Kinney participated in a mortgage fraud conspiracy by acting as the settlement agent in connection with fraudulent real estate transactions in New London County. As part of the scheme, Kinney submitted, or caused to be submitted, materially false HUD-1 settlement statements to lenders. In certain cases, Kinney released a disbursement check before he had received the downpayment listed on the HUD-1.
On Nov. 5, 2007, in connection with the investigation of this matter, Federal Bureau of Investigation (FBI) special agents served Kinney a subpoena at his New Haven office. On that date, Kinney told agents that he had never given anyone a closing check prior to receiving the downpayment money in connection with real estate closings that he handled when, in fact, he had done so on multiple occasions.