Criminal Justice
N.Y. Lawyer Accused of $5M Fraud Via Ponzi Scheme, Other Scams
Posted Sep 4, 2008, 10:31 am CST
By Martha Neil
A New York lawyer for more than 25 years has been accused of defrauding victims, including his clients and friends, of $5 million via various real estate-related schemes.
Stuart Moshell surrendered yesterday to FBI agents, and pleaded not guilty in U.S. District Court in Central Islip to charges concerning three alleged fraudulent schemes dating back as far as 1985, reports Newsday. They allegedly involved 21 people and three corporations.
"The frauds, according to federal officials, included a Ponzi scheme in which Moshell promised his victims more than 100 percent interest in return for their lending him money for bridge loans in real-estate transactions that were nonexistent," the newspaper writes. It says Moshell also is accused of having taken on mortgages on land he didn't "control" and siphoning money from escrow accounts.
His lawyer, James Druker of Garden City, tells the newspaper that Moshell originally intended to pay everybody back, and contends that some of the alleged victims listed by the government have in fact been paid the interest they expected.
One woman in the courtroom, who identified herself as a nurse named "Ruth," said she was among the victims, and had been a friend of Moshell's. She said the lawyer had been living a life of luxury, buying BMWs and a Hummer for his family, which includes his wife and two daughters, Newsday reports.
Although the article describes Moshell as a Jericho, N.Y., attorney, it appears that he is no longer a member of the New York bar:
The only Stuart Moshell listed on a state courts attorney directory resigned for disciplinary reasons, and in a written order (PDF) earlier this year the Appellate Division accepts his resignation, identifying him as a Jericho lawyer.
Moshell tendered his resignation from the bar in an affidavit last year because he didn't expect to be able to defend himself successfully in an attorney grievance matter, the opinion and order says. It doesn't specify the nature of the grievance.
Related Stories
- DA in Cheney-Gonzales Case Shouts at Judge, Who Seeks Higher-Court Backup
Nov 21, 2008, 06:01 pm CST - Slain Judge’s Widow Speaks, Prosecutors Take Heat at Nichols Sentencing
Nov 21, 2008, 01:52 pm CST - Deputy Calif. DA is Charged in Alleged Rape of Colleague
Nov 21, 2008, 01:15 pm CST - Former Mexican Drug Czar Got $450K to Keep Traffickers Informed, Authorities Say
Nov 21, 2008, 11:44 am CST
Related Topics
Commenting is not available in this weblog entry.
Comments
Be the first to comment.