What law does this come under?

[Sw3tflower]

Calif
What law, if any, would this situation apply to?
My husband and I refinanced and took out the equity to pay his business debts. I was the primary because of his bad credit rating.
The checks were to be sent to me and I would mail them to the proper places.
One of the debts was for $10,000. To repay a loan from his mother (I didn't know about). My husband produced an Email supposedly from his mother (the Email came from his brother's Email address), saying she lent him the money and it had to be repaid within 2 weeks.
His mother's name and where her account was located were listed in the dispursement column when I signed the equity loan. If not for the letter, I would not have agreed to sign.
I do not believe the check ever got to her. I found the deposit slip and it indicates it ended up in my husband's personal account.
They both have accounts at the same location.
He is evasive and refuses to tell me what happened to the check.
He says we 'reborrowed' the money.
I say he diverted funds meant for someone else for his own profit, at my expense.
The check was to pay off a loan. It was in writing. I signed it. That money never got to the person who loaned us the money.
If he borrowed more money from the same person, that is a seperate loan. As it stands, he diverted $10,000 from my equity loan. It was not to go to him. That was the problem in the first place. He is financially incompetent and driving us into bankrupcy. There were other debts I wanted to pay.
Did he do anything illegal as I believe? What about his brother who wrote the 'loan note'? Is his participation illegal since he knew where the money was actually going to end up?
I have the original Email from his mother. I have the signed equity loan papers. I have the check recept. I have the deposit recept.
I need that money myself...for a divorce!

[FlyingRon]

Did you talk to his mother? Did she ever see the check?
If he cashed a check not made out to him, yes that is illegal. If the check is written on your account, you should be able to get the canceled check copy and see how it was endorsed and where deposited. If it was a draft you directed the bank to make, you should contact them so they can do a similar investigation.

[Sw3tflower]

Yes, I asked his mother and she said she never got any check for $10,000 from me or the bank. She also said she didn't know what I was talking about when I asked if she lent us $10,000.
Her son, who Emailed me the letter (signed by her) stating she loaned us $10,000 is in charge of all of her accounts. He is an attorney.
The check was a disbursement check the bank made out. One of the debts I promised to pay with the equity loan. It came from my equity loan , not from my personal account.
Isn't that considered diverting funds meant for someone else?
If his mother never lent us $10,000, what would this be called? Intentionally giving me and the mortgage company false information in order to 'steal' money meant for debts.
I am still left owing the debt I had originally earmarked that $10,000 for.

[FlyingRon]

The issue about whether or not the mother loaned your husband money is largely immaterial.

The actionable part of this is whether he took the money from a check that was made out to someone else.

[Sw3tflower]

I have proof the disbursement check was deposited into his personal account. His mother denies getting any $10,000 check. The home equity papers I signed listed the debts to be paid, Bank of America ect....and the bank wrote out the checks for me. She was listed as one of the debts to be paid., in her name. The disbursement checks all came with the payee filled in. My husband took them and dsaid he would mail them to the appropriate parties. All the other checks went to the correct payee, except hers.
Hers was the only check for $10,000 listed on the dispursements to be paid. That exact check was deposited into my husband's account. She denies getting any check.
I want to take action against him if possible. That check was NOT for him but to pay off a debt. I had other debts I needed to pay off but when he suddenly produced the letter from his mom stating she loaned him $10,000 I felt obligated to pay her off.
I would like that $10,000 back if the check intended for her ended up in my husband's account instead. That is NOT where I wanted it to go or where it was intended to go.
How do I do this? Do I need an attorney? I am serious about following up with this.
Thank you

[LindaP777]

I would start by calling the police. This is grand theft. Your brother-in-law appears to be an accomplice.
Your husband is a crook. The second call I would make is to a good divorce attorney.

[Grandma's house]

The title co. disburses checks on behalf of the lender to pay off listed debts. Often this is necessary to qualify the loan's debt to income ratios (controlling funds) There should be a H.U.D. (Housing and Urban Development) Settlement statement showing exactly where all the funds went naming your mother as a debt to be paid. With this and your M.I.L. willing to do the charges against her own son for this fraud/forgery (not grand theft and I will explain)...and M.I.L. is willing to go with her daughter in law directly to the title co. and speak up and say: I never signed the check or received any funds and it was endorsed fraudulently AND BY FORGERY then SHE has no case.
The fraud/forgery was commited against the M.I.L. and not you. M.I.L. has to make charges and get the LENDER AND THE TITLE CO. to file them AND collect it back and replace HER check. Do you really think your future ex M.I.L. is going to do this to her son?
The reason there is no grand theft is because your husband IS the borrower. It is his money he took and scammed only you, his wife and co borrower...he cannot steal his own borrowed funds unless of course M.I.L. files a claim with the title co. and then then they with the authorities. You say you were the "primary". I hear this ALL the time. I "only co signed" so that debt is not MY fault it is delinquent (as if we are going to just over look it?) yeah right...You were the "primary" for qualifications purposes only...however you BOTH are equal borrowers PERIOD.
In your M.I.L's case the crime is forgery/fraud but not if M.I.L. was never owed the money but is a party to this scam and I believe she IS. Or is willing to be. Get a lawyer and divorce his sleezy a**. You have no recourse in this particular event. Your husband, stole his own funds and M.I.L. isn't going to go after funds that were probably never borrowed from her in the first place and even if they were, a sleeze like him, she will back him up anyway. How do you think he got that way?...At least from my view.

BTW. If you stir this up too much with the lender and the title co. they CAN call the loan due and payable immediately for the borrower commiting this fraud/forgery...So be careful.

[Sw3tflower]

You are right. It might not be fair, but that's how it is.
I had a consultation today with an attorney and he basically said the same thing you did.
My mother-n-law is certainly not going to back me and say her sweet, innocent son who never lies or cheats.... took money not meant for him. Or scammed me. Or admit her other son helped...
So...I got a referral to a divorce attorney who I will call Monday.
Thank you for the honest answer.

[Grandma's house]

I do atleast try to be honest ALWAYS. Even if it hurts. However I am sometimes "mistaken" in what I think I know (but can't be crushed for being mistaken) lol. I am so glad you got a lawyer. Sounds like he is honest too, like my own. Your husband is not an honest person at all. You cannot trust him! You must rid yourself of the ones you cannot trust in life.