Long Island Attorney Swipes $73K+ Of Client's Money Given As Deposit In Real Estate Transaction, Says Nassau DA

From the Office of the Nassau County, New York District Attorney:

• Nassau County District Attorney Kathleen Rice announced [...] the arrest of a Plainview attorney who has been charged with stealing more than $73,000 from a couple he was representing in the sale of a piece of property. [...] The Plainview attorney, Stuart Gorman, 55, has been charged with Grand Larceny in the Second Degree. [...] Rice said that on or around October 1, 2008, Gorman was hired by a Brooklyn couple to represent them in the sale of a piece of property in Dyker Heights. Gorman was given a check by the buyer for $73,500 as a down payment on the purchase price. Instead of giving the check to the sellers of the property, Gorman deposited the check into his escrow account and then used the money for personal and business expenses.(1)

For the Nassau County DA press release, see DA Charges Two Men in Separate Cases of Lawyer Misconduct (Theft of real estate proceeds leads to felony charges for Plainview lawyer; Merrick man falsely claims to be attorney, costs ‘client’ $200K).

(1) If the charges prove true that attorney Gorman screwed his clients out of their money, The Lawyers’ Fund For Client Protection Of the State of New York may find itself on the hook for the loss, provided the clients who got screwed apply for reimbursement from the fund within two years after they discover their loss.

For those clients screwed out of their money and property by reason of the dishonest conduct of their attorneys in other states and Canada, see:

• Directory Of Lawyers' Funds For Client Protection (American Bar Association);
• Check the USA Client Protection Funds Map;
• Check the Canada Client Protection Funds Map. EscrowRipOffKappa