Ex-Barclay Damon Lawyer Confesses to $2 Million Fraud Scheme
Former trusts and estates lawyer Albert Hessberg III admitted to embezzling from clients and from his law firm and pleaded guilty to three felonies.
May 08, 2019 at 05:25 PM
2 minute read
A former trusts and estates lawyer who worked at Barclay Damon until he was found to have been embezzling from clients and the firm has pleaded guilty to federal fraud and tax charges Wednesday.
Albert Hessberg III pleaded guilty in Albany federal court to one count each of mail fraud, wire fraud and filing a false tax return, prosecutors said. He agreed in his plea deal not to appeal any sentence of 11 years and three months or less, court records show.
Hessberg, 64, admitted to stealing money from client trust accounts, billing for work that he didn't actually do, and taking fee payments that were properly owed to the firm for himself. He has paid back some $1.2 million to Barclay Damon, “as partial restitution and for distribution to his victims,” according to his plea agreement.
Connie Cahill, a partner at Barclay Damon, said in a statement that her firm was “shocked and disappointed” to learn of Hessberg's misconduct last year, fired him, and reported his crimes to authorities.
“Today's guilty plea brings a measure of closure to this matter and we want to thank the U.S. Attorney's office and the FBI for their highly professional work in this case,” she wrote. “We are committed to working with Mr. Hessberg's victims as they continue to pursue justice.”
Lawyer misconduct is nothing new, but Hessberg's admitted crimes stood out because he had a longstanding affiliation with a sizable firm. He was also reported to be a prominent figure in the community, sitting on a number of local boards.
Hessberg had been a senior partner at Barclay Damon, a firm with several offices across New York and four out-of-state. Its website lists about 285 lawyers.
Sentencing is set for Sept. 5.
Hessberg's defense attorney, E. Stewart Jones, did not return a phone call seeking comment.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllWhich Outside Law Firms Are Irreplaceable, and Which Should Have Gotten the Ax Years Ago?
4 minute readLatham, Kirkland Alums Land the Top GC Posts—Here's What It Means for Business Generation
10 minute readLaw Firms Sue Clients for Unpaid Legal Fees as Big Law Collection Goals Ramp Up
Trending Stories
- 1Judge Denies Sean Combs Third Bail Bid, Citing Community Safety
- 2Republican FTC Commissioner: 'The Time for Rulemaking by the Biden-Harris FTC Is Over'
- 3NY Appellate Panel Cites Student's Disciplinary History While Sending Negligence Claim Against School District to Trial
- 4A Meta DIG and Its Nvidia Implications
- 5Deception or Coercion? California Supreme Court Grants Review in Jailhouse Confession Case
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250