Earlier today, Hyun W. Lee, a disbarred attorney from Queens, was sentenced to 54 months in prison for wire fraud by United States District Judge Pamela K. Chen in federal court in Brooklyn. The charges stemmed from a scheme where Lee defrauded his real estate clients and their counterparties of funds held in his attorney escrow account. In addition to the prison sentence, Lee has been ordered to pay $3.27 million in forfeiture and restitution amounting to $3.29 million to the victims. He pleaded guilty to wire fraud in December 2023.
John J. Durham, United States Attorney for the Eastern District of New York, announced the sentencing and commented on Lee's actions: "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." Durham highlighted that Lee targeted clients within the Korean-American community in Queens who often rely heavily on trusted legal representation due to limited experience with the legal system.
Lee had been licensed as an attorney by the State of New York since 2003 and operated out of Flushing, Queens. His disbarment occurred on March 11, 2020, following charges by the Grievance Committee related to misappropriating client and third-party funds.
From February 2018 through May 2023, Lee persuaded clients and counterparties to entrust him with funds intended for real estate transactions under false pretenses. Instead of safeguarding these funds, he used them personally for gambling at casinos and covering expenses at a restaurant he partially owned.
Lee misled his clients about their funds' status by fabricating documents showing nearly $3 million available when only approximately $25,000 remained in reality. He ignored requests from clients seeking fund releases by falsely claiming efforts were underway for equitable distribution when most funds had already been spent.
Victims affected by Lee's conduct or other misconduct by New York lawyers may seek compensation through claims filed with the Lawyer’s Fund for Client Protection via phone at (800) 442-3863 or email info@nylawfund.org.
The case against Lee was managed by Assistant U.S. Attorney Hiral D. Mehta from the Office’s Business and Securities Fraud Section with assistance from Special Agent Martin Sullivan.