Office of the Attorney General: Quincy Lawyer and Business Associate Indicted on Charges of Fraud, Larceny, and Embezzlement in Connection with Real Estate Closings Lawyer Indicted for Stealing a Personal Injury Settlement from a Minor; Associate Indicted for Stealing Identities, Credit Card Fraud, Practicing Law Without a License, and Defrauding the Federal Government

FROM THE OFFICE OF THE ATTORNEY GENERAL

August 02, 2008

BOSTON - A Suffolk Grand Jury returned indictments against a lawyer and his business associate in connection with allegedly stealing mortgage payments from loan companies. The pair was also indicted in connection with separate schemes uncovered by investigators during the course of the mortgage fraud investigation. Attorney Bruce Namenson, age 46, of Walpole, was indicted on a variety of larceny, conspiracy, and embezzlement charges related to two separate incidents. Namenson’s business associate Gerald Schena, age 59, of Medford, was also indicted on numerous larceny, credit card fraud, and identity fraud charges in association with three separate incidents uncovered in the course of the Attorney General’s investigation. An investigation by the Attorney General’s Office began in February 2008 after receiving complaints that Namenson was involved in fraud involving mortgages. In this particular case, Namenson is charged with Larceny over $250 (6 counts), Embezzlement (2 counts), Conspiracy to Commit Larceny Over $250 (10 counts) and Conspiracy to Commit Embezzlement (3 counts). Schena, was also charged with Larceny over $250 (10 counts), Embezzlement (3 counts), Conspiracy to Commit Larceny over $250 (10 counts), and Conspiracy to Commit Embezzlement (3 counts) for his participation in this scheme. Investigators discovered that in April, July, and September 2007, Namenson and Schena acted as closing agents for three residential real estate closings. Schena met the people interested in buying the homes. Schena, in dealing with the parties to the real estate transactions, allegedly posed as Namenson’s former law partner with the help of Namenson. At the time of the sales, there were outstanding mortgages on the properties totaling over $500,000. The buyers obtained loans to purchase these homes. At the time of the closings, the purchase funds were allegedly wired to Namenson’s business account for the purpose of paying off the outstanding mortgages, with the balance of the proceeds (minus closing costs) payable to the sellers. After the closings, Namenson allegedly failed to pay off the over $500,000 in mortgage debts remaining on the homes.

As a result of Namenson’s failure to pay off the mortgages, the homes were threatened with foreclosure, to the detriment of the sellers’ credit ratings and the buyers’ homes. With Schena’s aid, Namenson allegedly attempted to avoid foreclosure and discovery of the thefts by periodically making partial loan payments to the banks. Most of the debts remain outstanding.

Namenson was also indicted in connection with allegedly stealing $100,000 from a minor he represented in a personal injury settlement. In this case Namenson is charged with Larceny over $250 (2 counts), Forgery, and Uttering. In August 2005, Namenson was hired to represent a 15 year-old girl who had been seriously injured in a car accident. Namenson brought a personal injury claim on his client’s behalf. In December 2005 Namenson allegedly forged the signature of the client’s mother on a document authorizing Arbella Insurance Company (Arbella) to settle the claim for $100,000, and releasing Arbella and all other parties from future claims. Arbella and its attorney insisted that the settlement be approved by a Court, as Namenson’s client was a minor. Namenson petitioned a judge for approval of the settlement. Namenson claimed in writing to the judge that he had created a trust for his client’s benefit, and that upon approval of the settlement he would transfer two-thirds of the settlement funds to his client’s mother who would hold and pay the amount to her daughter upon her 18th birthday. The judge approved the settlement. Namenson allegedly never informed his client and her mother that the case had been settled. Namenson allegedly withheld most of the settlement funds that his client was awarded.

Schena was also indicted in connection with the theft of several individuals’ identities. He was charged with Identity Fraud (3 counts), Credit Card Fraud, and Practicing Law Without a License. Investigators discovered that from September2005 throughFebruary2008, Schena stole the identities of three individuals and used their identities to acquire various goods and services. Schena used a former Massachusetts attorney’s identity to obtain various items including a driver’s license with the former attorney’s personal identifying information and Schena’s picture. Schena also represented himself as this attorney to the Massachusetts Board of Bar Overseers, reinstated the individual’s license to practice law, which had been voluntarily suspended, opened a client account in Massachusetts, and misused the account. Schena is not a licensed attorney.

Schena was further indicted and charged in connection with fraudulently collecting death benefits from the United States Office of Personnel and Management (OPM) and charged with Larceny Over $250 (28 counts), Forgery (28 counts), Uttering (28 counts) and Attempted Larceny. Authorities allege that between November 2005 and February 2008, Schena fraudulently collected these benefits by forging his deceased aunt’s name on benefits checks she received after her husband, a postal worker, passed away. Such benefits are available only to surviving spouses or minor children. After his aunt’s death, Schena allegedly collected over $32,000 in benefits. Each month he received a check, Schena would allegedly forge his aunt’s name, signing his own name as “power of attorney,” and cash the checks.

Schena is currently being held on $1,000,000 cash bail on previous insurance fraud charges out of Suffolk County.

A Suffolk County Grand Jury returned indictments against Namenson and Schena yesterday afternoon. Both men are scheduled to be arraigned in Suffolk Superior Court on August 6, 2008.

The cases are being prosecuted by Assistant Attorney General Brendan O’Shea, with the assistance of Investigator Scott Gisetto, both of Attorney General Martha Coakley’s Insurance and Unemployment Fraud Division. Massachusetts State Police assisted in the investigations.