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Lawyer Stole from Clients to Pay Blackmailer
By
Jaya Saxena
Published Apr 6, 2010
Modified Apr 6, 2010
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By
Jaya Saxena
Published Apr 6, 2010
Modified Apr 6, 2010
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Lawyer Marc Bernstein pleaded guilty to grand larceny yesterday after stealing $2.2 million of his clients' cash. Prosecutors accused him of stealing escrow and settlement money from 16 medical malpractice and personal-injury clients between 2006 and 2009, according to Businessweek. His attorney claims Bernstein stole the money to pay off a woman who was threatening to have him disbarred for lying. The Daily News says Bernstein will be disbarred.
Bernstein also pleaded guilty of scheming to defraud and failure to file tax returns. When stealing from clients, he would typically organize a settlement for one of his clients and then keep the money, such as the $87,000 he kept from a woman who suffered head injuries after falling in her nursing home. "He's a disgrace to all attorneys - and to his family," said the mother of the nursing home resident. Though prosecutors say she wasn't listed, Bernstein's blackmailer says she was one of his victims and that Bernstein threatened her. "He's really scared of her," said defense lawyer Arthur Aidala. She has denied trying to extort Bernstein.
Bernstein also stole a $900,000 deposit for a real estate purchaser, and would often write bad checks or tell clients that their settlement money was unavailable. Bernstein faces a maximum of 3-9 years in prison, and was ordered to pay $200,000 by the June 3 restitution hearing.
Tagged
blackmail
disbarred
extortion
fraud
grand larceny
lawyer
marc bernstein
theft
Jaya Saxena
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