Opinion ID: 1929359
Heading Depth: 1
Heading Rank: 3

Heading: The Aumiller Settlement

Text: In March, 1986 Joseph Aumiller contracted to buy a home from Seth and Joan Goldberg for $200,000, agreeing to obtain a first trust of $180,000. Aumiller applied for a loan through GMS. GMS again prepared a fraudulent contract, showing a sale price of $230,000 and a first trust of $207,000, and with these documents obtained a loan commitment for $207,000. GMS forwarded the original contract to respondent for settlement, but in the instructions, GMS listed $230,000 as the sale price and $207,000 as the loan. Respondent claims he called GMS about the discrepancy, and was told to correct the contract price to $200,000, but that the loan amount was correct at $207,000. Settlement took place under curious circumstances. The purchasers were kept in one room and the sellers in another. Respondent prepared separate settlement sheets for each party. Although respondent prepared the note and deed of trust for $207,000, he showed the financing on the settlement sheet as two loans: $180,000, and $27,000 as additional financing. GMS allegedly altered the settlement sheets to show the fraudulent sale price before sending the package to the lender. Again, the president of GMS testified that respondent had no knowledge of the false contract. Bar Counsel argued that respondent must have known of the alteration for a number of reasons. Judge Ryan concluded: The court finds Bar Counsel's argument concerning the Aumiller settlement sheet persuasive, and also finds that the manner in which the Aumiller settlement was conducted is suspect. However, the court does not believe there is clear and convincing evidence that Mr. Sliffman was directly involved in the alteration or fabrication of settlement documents or knew that documents were being altered or fabricated by GMS. Bar Counsel did not except to this finding, and we accept the finding of Judge Ryan.