Disbarred Lawyer Sentenced In $2.37M Client 'Refi' Theft; Cash Meant For Lien Payoffs; Attny Ripoff Reimbursement Fund Expected To Step In, Cough Up

In Saratoga County, New York, The Glens Falls Post Star reports:

• A Wilton lawyer who prosecutors say was running a "mini-Madoff" scheme to help bankroll a lavish lifestyle that included a home on a Caribbean island was sentenced to up to 15 years in state prison on Friday in Saratoga County Court.

• Patrick M. Reidy, 48, was arrested in August 2009 after several real estate clients of his began discovering that mortgage payments - given to Reidy to forward on their behalf - had not been received by the mortgage holders. Reidy was re-directing foreclosure payments after forging documents that gave him power of attorney, a move that kept homeowners from learning their payments had not been made until they went to get new loans, according to court papers.

• Reidy ultimately bilked 19 area residents out of $2.37 million - money prosecutors said was used to buy property in the Caribbean, at least two nice cars and a nearly $600,000 home in Wilton.

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• When and how Reidy will make restitution remains unclear. A restitution hearing is scheduled for March 18 to determine the amount owed and to whom the money should be paid.

• If Reidy is unable to make restitution immediately, the state's Lawyers' Fund for Client Protection is expected to step in and make payments on his behalf. The fund is supported through lawyer fees and is intended to compensate those who have been victimized by [New York State] lawyers. Attorneys for the fund will pursue compensation from Reidy if and when the fund makes payments on his behalf.(1)

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• A father of three who was recently divorced, Reidy has already spent 14 months in county jail. He will be eligible for parole in a little less than four years, though he could ultimately spend up to 15 years in prison. Reidy has also been banned from ever practicing as an attorney in New York again.

For the story, see Lawyer sentenced in mortgage fraud case.

(1) 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 (now includes listing of Canadian client compensation funds, by province, 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.