Ex-Lawyer Faces 5 To 15 Yrs For Swiping $339K From R/E Closing Meant For Mtg Payoff; Lacks $50K Upfront Needed For Judge's Jail Term "Buy Down" Offer

In Carmel, New York, The Journal News reports:

• A former Southeast lawyer who served as a Patterson library trustee and on the Putnam Arts Council is being held in the Putnam County jail awaiting sentencing on the theft of $339,000 from a real estate closing. Jane Y. Posner, 60, the wife of former Patterson councilman and attorney Martin Posner, has admitted taking the money but the reason she might face up to 15 years in prison is she refuses to say what she did with it. Posner pleaded guilty Jan. 12 to second-degree grand larceny.

• "We offered her the opportunity to pay restitution in exchange for a reduced sentence. But she failed to accept the offer and never indicated where the money went, so we are asking for five to 15 years," county District Attorney Adam Levy said. He said Posner, who lives in a spacious home on Alexander Drive and recently celebrated her 40th wedding anniversary while behind bars, only came up with $4,000 toward restitution.

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• The New Jersey-based Corcoran Law Group had Posner stand in for them at the closing, where she was given a $339,719 check that was supposed to go to the lender. Instead, she deposited it into her own account and sent the Corcoran Group a $339,719 check from her escrow account then stopped payment on it. The law firm later sued her for legal malpractice in a case that's pending.

• Shortly after her arrest in October 2008, Posner gave up her law license, which she had held since June 1989. The Appellate Division of the 2nd Judicial Department noted in an April 2009 ruling that "Ms. Posner acknowledges her inability to defend herself on the merits against (criminal) charges."(1)

• Martin Posner said he believes his wife deserves leniency. Given five years probation, he and his wife could repay the money, he argued, but [County Court Judge James] Reitz wanted $50,000 up front, which they don't have, he said.

For the story, see Putnam lawyer Jane Posner faces 15 years in prison for stealing $339G.

(1) In its ruling (see Matter of Posner, 63 AD3d 61, 2009 NY Slip Op 02792 (App. Div. 2nd Dept. 2009), the New York intermediate appellate court also noted:

• Ms. Posner is aware that this Court, in any order permitting her to resign, could require her to make monetary restitution to any person whose money or property was misappropriated or misapplied or to reimburse the Lawyers' Fund for Client Protection.

Apparently, The Lawyers’ Fund For Client Protection Of the State of New York, whose mission, according to their website, is "to protect legal consumers from dishonest conduct in the practice of law, to preserve the integrity of the bar, to safeguard the good name of lawyers for their honesty in handling client money, to promote public confidence in the administration of justice in the Empire State," may have been left on the hook for making some reimbursement for the theft of the escrow money in this case. This fund, in effect, operates as the state's "attorney ripoff reimbursement fund."

For information on "attorney ripoff reimbursement funds" in other states and Canada, see:

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