Lawyer to pay $115,000 to settle mortgage fraud case

A Brockton attorney has agreed to stop working as a real estate-closing attorney and title agent for seven years and pay $115,000 in restitution and fees to settle allegations of mortgage fraud in an agreement with Massachusetts Attorney General Martha Coakley.

Coakley said today that her office entered into a judgment with attorney Valerie Hanserd over two lawsuits that allege Hanserd participated in mortgage fraud and a foreclosure rescue scheme.

The settlement resolves the state's allegations against Hanserd in both cases. But the attorney general's office is still proceeding with the lawsuits, which involve other defendants who work in the real-estate industry, including mortgage brokers.

According to the first lawsuit, Hanserd served as a closing attorney for a loan allegedly obtained by using false and forged documents. The second lawsuit alleges that Hanserd and 18 other defendants participated "in an unfair and deceptive foreclosure rescue scheme" that targeted struggling homeowners.

The settlement mandates that Hanserd must not serve as a real estate closing attorney or title agent for seven years retroactive to April 27, 2007.
(By Jenifer McKim, Globe staff)