ALBANY – A man cannot seek reimbursement from the Lawyers’ Fund for Client Protection for $500,000 in loans arranged by an attorney who served more than four years in prison for stealing from his clients, a state appeals court has ruled.

The two loans were lined up by ex-attorney Frank M. Gangemi outside his attorney-client relationship with Steve Pappas and, as such, were not subject to the protections the fund was set up to provide to those victimized by dishonest lawyers, the Appellate Division, Third Department, held.

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