Disbarred Queens attorney admits to defrauding clients in real estate scheme

A disbarred attorney in Queens pleaded guilty to wire fraud  on Friday for embezzling millions from clients in real estate transactions, and now faces up to 20 years in prison and has agreed to forfeit $3.27 million.

Hyun W. Lee, a 51-year-old attorney who lives in Closter, New Jersey, who operated under the alias Michael Lee, has entered a guilty plea to charges of wire fraud. 

The charges stem from his scheme to defraud clients and their counterparts in real estate transactions, amounting to a multi-million dollar embezzlement. Lee admitted his guilt before U.S. District Judge Pamela Chen. 

United States Attorney for the Eastern District of New York Breon Peace formally announced the guilty plea and highlighted the predatory nature of Lee’s actions, particularly his exploitation of the Korean American community. 

“With today’s guilty plea, Lee has admitted that he preyed upon members of the Korean American community by holding himself out as a licensed attorney after his suspension and disbarment, only to steal millions of dollars entrusted to him for safekeeping,” said Peace. “Protecting the community while holding accountable those who use their positions of trust to defraud others is, and will remain, a priority of this office.”

Court documents and statements during the plea proceeding revealed Lee’s method of operation. He lured clients and counterparts to deposit funds into his escrow account under the pretense of facilitating real estate purchases. Contrary to his assurances, these funds were diverted for personal use, including gambling and financing a restaurant he partially owned.

To make things worse, Lee falsely represented himself as a licensed attorney, capable of handling real estate transactions and holding client funds in escrow. Unknown to his clients, Lee had been suspended and subsequently disbarred,…