ATM Withdrawals From Escrow Account

The New York Appellate Division for the First Judicial Department has disbarred an attorney for misappropriation of entrusted funds.

The court has previously ordered an interim suspension

In September 2013, the [Departmental Disciplinary] Committee opened an investigation into respondent’s professional conduct after receiving a complaint from a buyer in a real estate transaction who alleged that respondent failed to refund his $65,000 down payment in an aborted transaction…

we find that the record presents evidence that respondent misappropriated and/or converted third-party funds, improperly made repeated ATM cash withdrawals from his escrow account, and commingled personal funds with client funds while $200,000 in tax liens loomed over any funds that he maintained outside of his escrow account.   Such conduct constitutes professional misconduct that immediately threatens the public interest, thereby warranting his immediate suspension from the practice of law.

In New York, a failure to respond to a notice of disbarment for six months results in the entry of a disbarment order. (Mike Frisch)