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Fairfield Lawyer Pleads Guilty to Bank Fraud

A Fairfield lawyer pleaded guilty Friday to one count of bank fraud involving a Greenwich residential property before Senior U.S. District Judge Ellen Bree Burns in New Haven, according to U.S. Attorney David Fein.

The Greenwich Time reported that Brian P. McManus, 43, turned himself in to authorities in December and now faces a 30-year maximum prison term and a fine of up to $1 million in the case.

On July 22, 2008, McManus handled a real estate closing and was to pay off the outstanding mortgage of more than $2 million on the Greenwich home with funds provided by another lender. McManus used about $1.45 million to pay off mortgages from unrelated real estate transactions and to pay personal and business expenses. He also paid the monthly mortgage on the Greenwich home instead of paying off the loan in full.

The victim is an unknown bank, according to court documents. McManus' client in 2008, the property owner, is referred to only as BH. The address of the property was not released.

Sentencing is set for Sept. 9. McManus placed himself on inactive status earlier this year and is no longer practicing law, said William Dow, McManus' attorney. McManus faces disciplinary proceedings by state judicial proceedings said Dow, which could lead to his being disbarred.

McManus told this to Fein and the FBI in December before charges were filed, said Dow. "(McManus) has put aside funds for necessary restitution and to the extent his funds are insufficient for restitution the title insurance will cover any deficiencies," Dow said.The U.S. attorney's office declined to comment, said Tom Carlson, spokesman.

What do you think about Brian McManus' actions? Leave your comments below.

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