No Guardian

An attorney who misappropriated funds while serving as guardian of a now-deceased Brooklyn civil court judge was disbarred by the New York Appellate Division for the First Judicial Department.

The court applied collateral estoppel effect to findings in the guardianship matter:

Particularly, following a framed-issue hearing, Justice Ambrosio imposed the following surcharges: $197,416.08 for legal fees which respondent improperly withdrew from guardianship accounts without court authorization; $52,500 for fees respondent improperly took as a brokers commission in connection with the sale of estate property by court auction; $120,215.37 for dissipating guardianship funds by using said funds to renovate property not owned by Phillips’ estate; $3,832.78 for using guardianship funds to pay her mortgage; and $29,184.63 for the unaccounted balance of a down payment from the sale of estate property located at 132-140 Herkimer Street in Brooklyn. Based on these surcharges, Judge Ambrosio granted the Phillips estate a judgment against respondent for $403,148.86, plus interest, and found that respondent forfeited all right to compensation due to the breach of her fiduciary duty.

The court rejected the attorney’s claims: 

At the hearing, respondent testified that her misconduct was the result of mistakes, and that there was no intent to defraud. Respondent acknowledged that she has not paid any of the $403,148.86 in surcharges imposed against her because, in her view, despite Justice Ambrosio’s finding that she was not entitled to compensation, she is owed approximately $700,000 from Judge Phillip’s estate based on quantum meruit. As evidence in aggravation, the Committee introduced a 2004 Admonition respondent received for improperly notarizing a surrender agreement in a real estate matter, and claimed that respondent engaged in the practice of law while suspended and lacked remorse for her misconduct.

(Mike Frisch)