A former lawyer from Massachusetts has pleaded guilty to federal charges in Rhode Island that he used the proceeds from mortgages obtained by his clients to run a Ponzi scheme worth nearly $602,000.
Federal prosecutors said Wednesday that 52-year-old David Spector, of Needham, Mass., pleaded guilty to three counts of wire fraud and one count of money laundering in U.S. District Court in Providence.
Prosecutors say Spector admitted to using proceeds from mortgages obtained by his clients as part of refinancing deals to pay personal expenses and previous mortgages. Spector was the closing attorney for the three properties involved in the scheme.
Prosecutors say Spector concealed the plot by arranging for mortgage bills to be mailed to a post office box that he controlled. His sentencing is scheduled for August.
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