Cash Transactions

An attorney has consented to an interim suspension by the New York Appellate Division for the First Judicial Department on these facts

The first real estate transaction involved respondent’s representation of a housing development fund corporation (HDFC) in the sale of a cooperative apartment to J.H. for $300,000. In April 2019, J.H.’s counsel wired a $30,000 down payment to respondent’s escrow account. Prior to the closing on the apartment in August 2019, respondent made several withdrawals from the escrow account that were unrelated to the sale. The balance in the escrow account eventually fell to $508.75. Respondent has failed to remit the $30,000 down payment to the HDFC, notwithstanding several email requests from its managing agent.

The second real estate transaction concerns respondent’s representation of a second HDFC. In 2020, M.H. purchased an apartment from an HDFC co-op member for $320,000. The $35,250 flip tax and respondent’s $2,000 legal fee were subsequently deposited into respondent’s escrow account. Respondent received $665.48 from M.H. to pay the November 2020 maintenance fee for the apartment. That money was also placed into his escrow account.

Respondent thereafter withdrew $2,700 from the escrow account, which exceeded his legal fee by $700. Respondent made 10 additional withdrawals from his escrow account that totaled approximately $7,900.

Between November 1, 2020 and November 25, 2020, the second HDFC and M.H. exchanged emails concerning her November maintenance fee. After informing M.H. that it never received the $665.48 she previously sent to respondent, the second HDFC asked respondent to promptly remit the flip tax and M.H.’s maintenance payment. To date, respondent has failed to do so.

In sum, the AGC claims that respondent converted a total amount of $65,915.48. The AGC alleges further that respondent made 50 improper cash withdrawals from his escrow account between October 2019 and October 2020. The AGC claims that, between October 2021 and February 2022, respondent deposited personal funds into his escrow account on 20 occasions.

For his part, respondent disclosed that, between 2018 and 2021, he was taking medication for major depression and repeatedly hospitalized for alcoholism and addiction to prescription medication. Respondent provided this information to explain why he lacks memory of certain events.

We find that the bank records and other documents submitted by the AGC are undisputed evidence that respondent converted, commingled, and/or misappropriated funds, and that this conduct immediately threatens the public interest (see Matter of Carlebach, 156 AD3d 44 [1st Dept 2017]; Matter of Kiss, 152 AD3d 129 [1st Dept 2017]; Matter of Karan, 149 AD3d 14 [1st Dept 2017]). We note that respondent consents to an interim suspension.

(Mike Frisch)