Murray Hill’s attorney pleaded guilty Friday in federal court in Brooklyn to defrauding real estate clients out of millions of dollars while he was disbarred and not allowed to practice law in 2019.
QNS file photo
On December 1, Murray Hill’s disbarred attorney pleaded guilty in federal court in Brooklyn to charges of defrauding his client.
Hyun W. Lee, 51, also known as “Michael Lee,” of Closter, New Jersey, collected millions of dollars from clients in real estate transactions while practicing law at 163-07 Depot Road. He was accused of stealing. At Murray Hill. He pleaded guilty to wire fraud in connection with a scheme to defraud real estate clients and their business partners of funds held in attorney escrow accounts.
According to court filings and facts presented during the judicial proceeding, Mr. Lee bribed customers and business partners with money to purchase real estate based on false representations that he would release funds deposited in escrow accounts. I induced them to entrust their funds to him. Instead, Lee misappropriated these funds and used them for his own benefit, including gambling at casinos and expenses at restaurants he partially owned.
Lee also falsely represented that he was an attorney authorized to represent clients, including in connection with the purchase and sale of real estate, and to receive and hold funds in an escrow account in connection with real estate transactions. did. In fact, Lee was suspended and subsequently disbarred from practicing law in New York State. As a result, Mr. Lee is no longer able to receive funds from his customers or third parties.
By forging documents, Mr. Lee misled customers about the status of funds held in escrow accounts, leading them to believe their funds were safe. Documents Mr. Lee showed clients showed the balance in the escrow account as close to $3 million, but in reality, the balance in the escrow account had dropped to only about $25,000. He then failed to honor requests from customers and their counterparties to release funds from the escrow account, and distributed the remaining funds equitably, when in fact he had already spent essentially all of them. He falsely claimed that he was thinking of ways to do so. Funds in the account.
“With today’s guilty plea, Mr. Lee continued to practice law even after being suspended and disbarred, stealing millions of dollars that were held for safekeeping and preying on members of the Korean American community. ,” said U.S. Attorney Breon. Peace said. “Protecting our communities while holding accountable those who use their positions of trust to deceive others remains a priority for this office.”
Mr. Lee pleaded guilty before U.S. District Judge Pamela K. Chen. Mr. Lee also agreed to pay forfeiture of $3.27 million. If sentenced, he could face up to 20 years in prison.