Montgomery, Al.
The U.S. Attorneys Office in Montgomery expects a disbarred Auburn attorney to plead guilty to federal wire fraud charges accusing him of siphoning off more than $2 million from mortgage loan closings overseen by his firm.
U.S. Attorney’s Office spokeswoman Clark Morris said James Boyd Douglas Jr. plans to plead guilty to wire fraud ahead of information about the case being sent to a federal grand jury. A consent plea hearing is scheduled for March 22, according to an order filed Thursday.
Douglas’ attorney did not return calls for comment Thursday.
In filings Wednesday, the U.S. Attorney’s Office for the Middle District of Alabama alleged Douglas took more than $2 million in proceeds from mortgage loan closings and refinances overseen by his law firm while representing to clients and lenders the loans had been repaid. The U.S. Attorney’s Office alleges the scheme went on from January 2005 until late September 2011.
The felony charge carries a potential sentence of as much as 20 years in prison and fines.
Douglas, a partner at McNeal & Douglas in Auburn, successfully petitioned the Alabama State Bar for disbarment in October 2011. Douglas’ partner at the time denied knowledge of the alleged fraud, but said the disbarment was related to accounting and trust issues.
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