Closing Attorney Ordered To Pay $2.37M Restitution In Escrow Funds Theft; State's "Lawyer Ripoff Reimbursement Fund" May Be Left Holding The Bag

In Ballston Spa, New York, The Glens Falls Post Star reports:

• A 47-year-old attorney who practiced law in Saratoga Springs admitted [...] to stealing millions of dollars during real estate transactions he handled for more than a dozen clients. Patrick M. Reidy of [...] Wilton, pleaded guilty in Saratoga County Court to second-degree grand larceny, a felony.

• Saratoga County District Attorney James Murphy said his office will ask the court to impose a 5-to-15-year jail term when Reidy is sentenced on Oct. 22. Reidy will also be ordered to pay $2.37 million in restitution to the 19 victims and will lose his license to practice law.

• Reidy, an attorney who specialized in real estate in addition to being a licensed real estate broker and notary public, stole money from real estate closings and used that money for own purposes, rather than paying off mortgages and other loans, Murphy said.

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• "I'm thrilled because it feels like there's finally a light at the end of the tunnel," said [Theresa] Olson-Hoffman, of Lake George, whose dealings with Reidy resulted in the disappearance of a $135,000 check she had given to him and a crash to her credit rating when she refinanced a home loan.

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• Olson-Hoffman has been working with The Lawyers' Fund for Client Protection [of the State of New York], an organization whose mission is to protect consumers from dishonest conduct in the practice of law, by reimbursing client money that is misused.(1) "They said that they needed a conviction and we'll have that in October," she said regarding the Oct. 22 sentencing. "After that, I don't know how long it's going to take to kick in."

For more, see Saratoga Springs lawyer pleads guilty in larceny case.

(1) This recent Albany Times Union story adds:

• [Criminal defense attorney Michael] Koenig would not discuss any personal assets Reidy still has, but said the victims will be able to turn to the Lawyer's Fund for Client Protection for money, and the fund managers will then pursue Reidy's holdings.

For similar "attorney ripoff reimbursement funds" that cover the financial mess created by the dishonest conduct of lawyers licensed 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.

Maps available courtesy of The National Client Protection Organization, Inc.