John Foley, 53, of Milton, is accused of duping Robert Evans, 78, into adding Foley's name to the deed for Evans' home in the Dorchester section of Boston, the Boston Herald reported.
Foley then allegedly took out a $65,000 loan against the house and kept the money, according to police documents.
Evans declared bankruptcy last month to forestall a bank sale on his property, which he owned outright before adding Foley to the deed.
``I was sweet-talked, I was conned. I thought he was a good friend. I was wrong,'' Evans said. ``The whole thing hit me here, like a punch to the gut.
Evans said he agreed to add Foley's name to his deed in November 2001 because he'd known Foley when he was a child and believed he'd make repairs to the house.
Foley remained on the job until Wednesday, when Mayor Thomas Menino ordered him suspended after learning of the charges from a Herald reporter, according to Menino spokesman Seth Gitell.
Foley acknowledges ``mismanaging'' the money but claimed he did so with Evans' full permission.
``I made mistakes. I readily admit it,'' he said. ``I know I did nothing criminally wrong. Stupid, maybe, but criminal, no way.''
Police sought a criminal complaint against Foley on Oct. 20, 2003, but to date there has been no indictment against him.
