Thursday, July 31, 2008

Another Lawyer Suspected In Swiping Foreclosure Surplus Proceeds?

In Brooklyn, New York, the NY Daily News reports:
  • A lawyer close to the Brooklyn Democratic machine is suspected of stealing $218,000 from an East Flatbush church in a mortgage foreclosure deal, the Daily News has learned. The Brooklyn district attorney's office is probing allegations that Alan Rocoff, the court-appointed referee for the foreclosure, refused to turn over the money to the Faithway Deliverance Center.

  • "My father founded the church with his own money and couldn't make the mortgage payments. When the property was foreclosed and sold, we were supposed to get what was left over," said Robert Booker Jr., son of the founding pastor of the Pentecostal church at 2525 Snyder Ave. [...] Five different judges have heard the case and ordered Rocoff to pay up, but he hasn't; nor has he been charged.(1)

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  • Foreclosure referees, often appointed through connections with judges, are typically paid $1,000 for what amounts to two hours' work. It involves collecting and then depositing the cash proceeds of a sale with a court clerk for eventual disbursement.

  • The church property was sold on Nov.26, 2002, in foreclosure for $301,000. There was $218,556 left after the mortgage and other debts were paid.

For more, see Lawyer a suspect in church ripoff.

Go here for another story where an attorney is accused of swiping the surplus proceeds of a foreclosure sale.

(1) According to the Daily News report, Rocoff was appointed referee by his friend Brooklyn Civil Court Judge Michael Garson, who later admitted stealing $163,000 from an aunt's bank account. Garson was tossed off the bench. He quit the bar, reimbursed his aunt's estate and pleaded guilty to a misdemeanor to avoid jail.