New York Inquisitor

NY officials claw back $6.3M stolen from charities by rogue lawyer and advisor

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Brooklyn Eagle
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Attorney General Letitia James helped to spearhead the recovery of $6.3 million stolen from family trusts by former attorney Richard J. Sherwood and financial advisor Thomas K. Lagan. Photo: Bebeto Matthews/AP

Attorney General Letitia James and U.S. Attorney Carla Freedman announced on Wednesday the recovery of $6.3 million stolen by former attorney Richard J. Sherwood and financial advisor Thomas K. Lagan. 

The duo exploited their roles as trustees for the estates of three elderly sisters from Guilderland, New York, embezzling approximately $11.8 million intended for charitable causes across the Capital Region.

Sherwood and Lagan, both convicted of grand larceny in 2019, manipulated the estate planning and trusts of philanthropists Warren and Pauline Bruggeman as well as Pauline’s sister, Anne Urban. They directed the sisters’ assets to a sham trust, Empire Capital Trust, that they created, making themselves the beneficiaries. 

This fraudulent activity continued until Anne’s death, at which point they accelerated their theft, transferring large sums to themselves rather than the charitable organizations specified in the original estate plans.

“New Yorkers should be able to trust that their financial advisors and attorneys are looking out for their best interests — not stealing their hard-earned money,” said Attorney General James. “Sherwood and Lagan defrauded a well-meaning family and, in the process, cheated local nonprofit organizations out of funds intended to support their missions. Thank you to U.S. Attorney Freedman for her partnership in rooting out fraud and stopping individuals who abuse the system.”

This recovery stems from the collaborative efforts of state and federal law enforcement and legal agencies, with the reclaimed funds now set to be distributed to the originally intended recipients, including St. Nicholas Ukrainian Catholic Church, the Ukrainian-American Cultural Center, Ellis Hospital Foundation and the Bruggeman…

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