Claims Expected to Stress N.Y. Client Security Fund
Claims by clients of a New York lawyer convicted of misappropriating millions of dollars in client funds are expected to stress the state’s Fund for Client Protection, the New York Law Journal reports.
New York lawyer Andrew F. Capoccia was convicted of conspiracy, mail fraud, wire fraud and other charges and is serving a 15 ½ year sentence. Prosecutors had contended he diverted money to his wife.
“These catastrophic losses will challenge the New York fund’s ability to be able to continue to serve as a model for effective law client protection in our nation,” according to a fund report posted by the newspaper.
The fund paid $7.1 million in claims last year, and had $7 million at the close of the year.
Authorities have already seized about $4 million in assets in the case and are pursuing additional claims, according to the paper.