Opinion ID: 1667507
Heading Depth: 1
Heading Rank: 3

Heading: background of the scheme

Text: Thomas Barry Wilkinson, the attorney in this proceeding, was a latecomer to the scheme and did not participate in its formulation. The scheme was concocted by three other individuals: William Douglas Wilkinson, Jr. (referred to hereinafter as Douglas), the Baton Rouge branch manager of Lomas and Nettleton Company, a multi-state lending institution domiciled in Dallas, Texas (Douglas is a brother-in-law but not a blood relative of Thomas Barry Wilkinson); Matt Eskan, a real estate developer; and Ivy Randolph Creel, an investment adviser. Douglas and Eskan were developers and owners of condominium dwellings in East Baton Rouge Parish. Together with Creel they conceived of a plan to facilitate the sale of the condominiums by inducing Douglas' employer, Lomas and Nettleton, to make loans to buyers for 100% of each purchase price. Because Lomas and Nettleton's policy prohibited it from making loans for more than 80% of the purchase price, the schemers planned to misrepresent and overstate the true sale prices by the use of bogus down payments and sham second-mortgages. According to their scheme, Lomas & Nettleton would be falsely led to believe that it was financing only 80% of each sale when in fact it was lending the buyer 100% of the true sale price. Douglas and Eskan would, of course, provide the condominiums and profit from the sales. Creel would provide, from his investor clientele, buyers wishing to purchase the condominiums as investments. The investment buyers of the condominiums would grant Creel, Douglas and Eskan an 8% retained interest in the net proceeds derived from future resales of the condominiums. Creel would also be paid a 6% management fee for managing the condominiums for the investor-buyers. In October or November of 1983, Douglas engaged Wilkinson as an attorney to represent Lomas and Nettleton in closing the loans to be made by the lending institution. Wilkinson agreed to provide the legal services and proceeded to close fifty-nine loans amounting to some $2.75 million for Lomas and Nettleton in connection with the sale of condominiums by Douglas and Eskan to Creel's investor clients. Wilkinson also rendered services for Douglas, Eskan and Creel by preparing and supervising the execution of the notes, mortgages and other instruments used to make it appear that the buyers had equity in the properties and that each loan did not exceed 80% of the sale price. Wilkinson did not share with Douglas, Eskan and Creel in the condominium sales profits, retained interests or management fees. He only received a $200 attorney fee for each loan closing from Lomas and Nettleton and a $100 attorney fee for conferring with each buyer-investor from Creel. Wilkinson closed the last loan in connection with this arrangement in September, 1984.