November 8, 2007

DA:  Lawyer Pocketed $300k from Clients

Levine stole personal injury settlement from a client trying to pay for her daughter’s heart surgery

MINEOLA – Nassau County District Attorney Kathleen Rice announced today that Joseph Levine, a 59-year-old recently disbarred attorney from Hewlett, has been arrested and charged with stealing more than $300,000 from two clients he was hired to represent in legal matters during the past year.  Mr. Levine is facing felony counts of Grand Larceny in the Second and Third Degrees, and two counts of Criminal Possession of a Forged Instrument in the Second Degree.

“Lawyers are hired into positions of trust, often during a difficult time of someone’s life,” said Rice.  “The betrayal of that trust is something my administration takes very seriously and will continue to investigate and prosecute aggressively.” 

Rice said that in December of 2006, the defendant counseled a Rockville Centre woman to settle a personal injury lawsuit that awarded his client $300,000.  On December 27, 2006, Mr. Levine traveled to the Pennsylvania office of the insurance carrier to pressure the insurance company into cutting the check immediately because his client’s daughter was having heart surgery and the woman needed the money.  The insurance adjuster issued the $300,000.00 check to the defendant.  Mr. Levine then forged the signatures of his client and her husband and deposited the check at the Woodmere branch of his Signature bank account.  Levine’s bank account shows the $300,000.00 deposit on December 28, 2006.  By March, after months of writing dozens of checks from this account, his balance on the account stood at a negative $139.44.  To date, the defendant has forwarded none of the settlement proceeds to his client.  The District Attorney’s Office received the complaint on March 19, 2007.

The Lawyer’s Fund for Client Protection has reimbursed Mr. Levine’s client $250,000 since the theft.  The fund was established in 1982 and serves a reimbursement mechanism for client funds that are lost due to the “dishonest conduct” of lawyers licensed in New York State.  The fund is financed by the 226,000 members of the legal profession in New York State through a registration fee required by law.

Rice said that in May of 2007, an Elmont woman was in the process of buying a home when her real estate agent recommended several attorneys that would be able to draw up the contract of sale.  The woman selected Joseph Levine and eventually gave the defendant a $10,000.00 down payment on a home.  The sale fell through the beginning of June 2007 and the woman requested the return of the money.  The defendant suggested that he should hold on to the funds, in the hopes that he could resurrect the real estate deal.  Ms. Duncan continued contact with Levine throughout the summer.  As of this date, she has not received a refund.  The District Attorney’s Office received the complaint on September 12, 2007.

Mr. Levine filed an affidavit of resignation with the New York State Bar on April 6, 2007.  He was disbarred on June 26, 2007.

The defendant was arrested by District Attorney Investigators Thursday morning.  He will be arraigned later today in First District Court, Hempstead.  Mr. Levine faces a maximum of 15 years in prison if convicted of the charges.

Assistant District Attorney Vickie Curran, of the DA’s Government & Consumer Frauds Bureau, is handling the case for the District Attorney’s Office.  Mr. Levine is being represented by Robert Vella, Esq., of Mineola.