State v. Patrick Timothy McDonald

157 A.3d 1080, 2017 WL 1408015, 2017 R.I. LEXIS 46
CourtSupreme Court of Rhode Island
DecidedApril 20, 2017
Docket2015-158-C.A.; (K2/11-798A)
StatusPublished
Cited by6 cases

This text of 157 A.3d 1080 (State v. Patrick Timothy McDonald) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Patrick Timothy McDonald, 157 A.3d 1080, 2017 WL 1408015, 2017 R.I. LEXIS 46 (R.I. 2017).

Opinion

OPINION

Chief Justice Suttell,

for the Court.

The defendant, Patrick Timothy McDonald, appeals from a judgment of conviction on three separate counts of embezzlement and one count of conspiracy to commit embezzlement. This case came before the Supreme Court pursuant to an order directing the parties to appear and show cause why the issues raised in this appeal should not be summarily decided. After considering the parties’ written and oral submissions and reviewing the record, we conclude that cause has not been shown and that this case may be decided without further briefing or argument. For the reasons set forth in this opinion, we affirm the judgment of the Superior Court.

I

Facts and Procedural History

On November 29, 2011, defendant was charged by criminal information with five counts of embezzlement in violation of G.L. 1956 § 11 — 41—3 1 and one count of conspiracy to commit embezzlement in violation of G.L. 1956 § 11-1-6. 2 The criminal information alleged that, between June 1, 2007, and December 31, 2008, defendant colluded with Kimberly Gostomski to embezzle funds totaling $166,303. 3 These funds were *1083 entrusted to defendant in his capacity as a real estate attorney; Gostomski worked as defendant’s paralegal. 4 A jury trial was held in January 2014. The evidence adduced at trial may be summarized as follows.

Martin Aguilar was the first witness to testify. Aguilar testified that, on July 24, 2008, he purchased real estate in Coventry from E.M.C. Mortgage Group (E.M.C. Mortgage) for $140,000, which he financed through Sun Trust Mortgage, Inc. (Sun Trust Mortgage). The defendant was the settlement agent for the transaction, and on July 24, 2008, Sun Trust Mortgage wired $126,215.97 to defendant’s IOLTA account 5 to be disbursed to E.M.C. Mortgage after the closing. Aguilar ostensibly purchased title insurance from defendant underwritten by Mortgage Guarantee & Title Insurance Company (Mortgage Guarantee & Title). Aguilar stated that, at the closing, defendant gave him a commitment for title insurance, which defendant had signed, and a closing protection letter, which insured Sun Trust Mortgage against loss arising out of “[f]raud or dishonesty of the * * * [ajpproved [ajttorney in handling [its] funds.” E.M.C. Mortgage never received the sales proceeds from defendant. Aguilar testified that, approximately one month after the closing, E.M.C. Mortgage’s attorney notified him that defendant had never disbursed any funds. Aguilar further testified that he met with Chief Disciplinary Counsel David Curtin and also filed an insurance claim with Mortgage Guarantee & Title. According to Aguilar, however, Mortgage Guarantee & Title informed him that his title insurance policy was “null and void.”

Next, the jury heard testimony from Joseph Tavarozzi. Tavarozzi explained that, in February 2008, he refinanced two existing mortgage loans on his real estate located in Warwick through IndyMac Bank (IndyMac). The defendant was the settlement agent for the refinancing transaction; and, on February 29, 2008, Indy-Mac wired $147,862.27 to defendant’s IOLTA account. The defendant was expected to disburse a total of $137,916.13 to Countrywide Home Loans (Countrywide) on February 29 — $101,691.35 to pay off Tavarozzi’s first Countrywide loan and $36,224.78 to pay off Tavarozzi’s second Countrywide loan. Tavarozzi also purchased title insurance from defendant underwritten by Mortgage Guarantee & Title. Tavarozzi attested that, at the time of the closing, he was three months ahead on his mortgage payments to Countrywide. According . to Tavarozzi, approximately four months after the closing, Countrywide notified him that his mortgages had not been paid. Tavarozzi testified that, upon receiving this notification from Countrywide, he attempted to contact defendant, but was never able to reach him. Instead, *1084 he spoke to Gostomski about the unpaid loans. Tavarozzi attested that, in June 2008, Gostomski called him to inform him that the first loan had been paid. Tavarozzi further testified that he received another call from Countrywide in August 2008 notifying him that the second loan for $36,224.78 was still outstanding. Tavarozzi explained that he again attempted to contact defendant, and, unable to reach either defendant or Gostomski, contacted Mortgage Guarantee' <& Title to file a claim under his title insurance policy. Tavarozzi attested that Mortgage Guarantee & Title paid Countrywide the outstanding balance on his second loan. The defendant never paid Countrywide the $36,224.78 on Tavar-ozzi’s second loan.

The jury also heard testimony from Michele Green, Senior Corporate Underwriter and Vice President of First American Title Insurance Company — formerly known as Mortgage Guarantee & Title. Green testified that defendant was an agent with Mortgage Guarantee & Title from January 2007 through May 2008. On May 9, 2008, however, Mortgage Guarantee' & Title terminated its agency agreement with defendant because, as it explained in its' correspondence to' defendant, he failed to complete an “escrow review.” According to Green, an escrow review monitors for agent fraud and includes examining attorneys’ IOLTA accounts, real estate closing documents, and cross-referencing policies issued with premiums collected. Green testified that, upon defendant’s termination from Mortgage Guarantee & Title, the company promptly blocked defendant’s access to its computer systems and notified all lenders to which it had issued closing protection letters, and whose transactions were still pending with defendant, that it was revoking the closing protection letters because defendant was no longer an active agent.

Green further recalled that, in August 2008, Tavarozzi contacted her to file a claim under his title insurance policy. According to Green, on Friday, August 29, she attempted to contact defendant about Tavarozzi and left defendant a voice mail saying, “We have somebody in our office who is making extremely serious allegations about a closing that you conducted. This is very[,] very serious. I need to speak to you right away. Please call me or e-mail me.” In response, defendant emailed Green, notifying her that he was on his way to his office to “get [her] the information A.S.A.P.” Green testified, though, that she did not hear back from defendant until Tuesday, September 2, despite “dozens” of attempts to contact him over the holiday weekend. At 9:47 a.m. on September 2, defendant sent Green an email reading, in part, “The loan was not paid off. First thing this morning I requested an up-to-date payoff and will be wiring out the funds as soqn as I receive it [sic] * * The subject line read “15 Chelmsford Avenue Warwick” — Tavaroz-zi’s address. According to Green, however, she had never disclosed to defendant which client she was contacting him about.

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Cite This Page — Counsel Stack

Bluebook (online)
157 A.3d 1080, 2017 WL 1408015, 2017 R.I. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-patrick-timothy-mcdonald-ri-2017.