A disbarred Boston criminal defense attorney was sentenced to federal prison Wednesday for tax and bank violations. According to a release from US Attorney Carmen Ortiz's Office, 66-year-old John C. McBride was sentenced to two years for recording fraudulent tax and bank releases on his seaside home in Marblehead and his vacation home on Martha's Vineyard. McBride pleaded guilty before US Chief District Judge Patti B. Saris in January.
After having practiced law for more than thirty years, McBride was disbarred in 2007. In 2008, McBride recorded six fraudulent federal tax lien releases against the Marblehead home in order to obtain a $288,000 loan. The releases cheated the IRS out of $700,000 in secured interest, the release said. McBride reportedly filed the releases without the knowledge of the IRS and forged the signatures of IRS officials.
In 2008, McBride attempted to file two similar fraudulent tax lien releases against his Edgartown vacation home. Three years later, McBride applied for a $387,000 reverse mortgage from Bank of America. McBride told the bank there were no liens against the property (there were substantial liens against the property) and that he was not in bankruptcy (he had in fact filed for bankruptcy in 2009 and it was still ongoing), the release said. McBride also presented Bank of America with a fraudulent discharge of mortgage on the Edgartown property to the tune of $700,000. Bank of America discovered the documents were false and no money was disbursed, according to the US Attorney's Office.
Both the Marblehead home and the Edgartown home were foreclosed on. The Edgartown home at 114 South Summer Street was put up for public auction on September 27, 2011. It was purchased by Deutsche Bank for $1,043,459.66 in July 2012, according to Dukes County Registry of Deeds documents.
In addition to serving two years in federal prison, there will be two years of supervised release. Restitution will also be determined at a later date.
The case was investigated by Ortiz's Office, the US Treasury Inspector General for Tax Administration, the FBI and the Internal Revenue Service's Criminal Investigation Unit. The case was prosecuted by Assistant US Attorney Mark J. Balthazard of Ortiz's Economic Crime Unit.