Source: Office of United States Attorneys
Defendant Falsely Held Himself Out as a Trusted Attorney in the Korean-American Community
Earlier today, in federal court in Brooklyn, disbarred attorney Hyun W. Lee, also known as “Michael Lee,” was sentenced by United States District Judge Pamela K. Chen to 54 months in prison for wire fraud in connection with a scheme to defraud his real estate clients and their counterparties of funds held in his attorney escrow account. As part of the sentence, Lee was ordered to pay the government $3.27 million in forfeiture and restitution to the victims in the amount of $3.29 million. Lee pleaded guilty to wire fraud in December 2023.
John J. Durham, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant was disbarred from the practice of law for reprehensible misconduct, but that severe penalty did not deter him from continuing to abuse the trust of clients, so it is my hope that he will get the message after serving a term of imprisonment for his crimes,” stated United States Attorney Durham. “It is particularly egregious that Lee committed these crimes by holding himself out as a trusted lawyer to clients within the Korean-American community in Queens, where many immigrants have little experience with the legal system and place an enormous amount of trust in the hands of individuals like the defendant who profess to represent their interests in legal proceedings.”
Mr. Durham thanked the Queens County District Attorney’s Office for their assistance in this matter.
Lee was an attorney licensed by the State of New York admitted to practice in 2003. He maintained an office in Flushing, Queens, where he represented buyers and sellers in connection with the purchase and sale of real property. On March 11, 2020, Lee was disbarred as a result of charges brought by the Grievance Committee that he had engaged in a pattern and practice of misappropriating client and third-party funds. As a result, Lee was not permitted to accept funds from clients and third parties.
Between February 2018 and May 2023, Lee induced clients and counterparties to entrust funds to him for the purchase of real estate based on misrepresentations that he would release the funds deposited into his escrow account. Instead, Lee misappropriated these funds and used them for his own benefit, which included gambling at casinos and to pay expenses at a restaurant that he was a part-owner. Lee misrepresented that he was an attorney authorized to represent clients in connection with the purchase and sale of real estate, and to receive and hold funds in his escrow account in connection with real estate transactions.
In furtherance of the scheme, Lee misled clients about the status of funds held in his escrow account by fabricating documents leading them to believe their funds were secure. While documentation Lee showed to clients reflected a balance in Lee’s escrow account of nearly $3 million, in reality Lee had depleted the escrow account down to only approximately $25,000. Lee failed to honor requests by clients and their counterparties to release funds from his escrow account, falsely claiming that he was in the process of working out an equitable distribution of funds that remained. In reality, Lee had already spent virtually all of the funds in the account.
Victims who suffered losses as a result of the conduct of Lee, or other New York lawyers who engage in misconduct, may be eligible to receive compensation by filing a claim with the Lawyer’s Fund for Client Protection, which may be reached by calling (800) 442-3863 or e-mailing info@nylawfund.org
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorney Hiral D. Mehta is in charge of the prosecution with assistance from Special Agent Martin Sullivan.
The Defendant:
HYUN W. LEE (also known as “Michael Lee”)
Age: 51
Closter, New Jersey
E.D.N.Y. Docket No. 23-CR-465 (PKC)