Paul P. Marchese and Robin S. Maynard Diverted Resources
from a Client’s Belief That Was Supposed for Charity
NEW YORK – New York Legal professional Typical Letitia James nowadays submitted a civil grievance from two Very long Island attorneys, Paul P. Marchese and Robin S. Maynard, of Manhasset, New York, who allegedly paid out on their own additional than $1 million in resources that were meant to go to a charitable basis produced by their deceased shopper. The consumer founded a trust for her assets, and when she died, people assets have been intended to be transferred to a foundation she designed to assistance instruction, cultural functions, and provide food items and shelter for folks in have to have. The lawsuit alleges that immediately after she died, Mr. Marchese — as the sole administrator of her have faith in — directed the have faith in to spend their law company practically $600,000 in costs, and each Mr. Marchese and Ms. Maynard — performing as the sole administrators of the foundation — directed the charity to shell out them a lot more than $750,000 in salaries. Legal professional Basic James’ go well with seeks a courtroom buy to force Mr. Marchese and Ms. Maynard to repay the resources, together with interests and penalties.
“Acting in their personal passions, these attorneys allegedly failed to grant their client’s dying wish and harm a charitable induce in the approach,” said Attorney Standard James. “New Yorkers ought to have belief in the persons tasked with overseeing their affairs when they are no for a longer time capable to do so themselves. My place of work will carry on to uphold the regulations developed to protect the interests of our charitable businesses and maintain accountable all those who try to shirk their responsibilities in get to line their pockets.”
An inquiry by the Office of the Legal professional Common (OAG) observed that Mr. Marchese and Ms. Maynard abused their positions to enrich by themselves and their law agency, Marchese & Maynard LLP. Mr. Marchese helped the consumer established up her foundation and a trust keeping all of her assets — truly worth $2 million — the remainder of which would go to her basis on her demise. She appointed Mr. Marchese to act as trustee on her loss of life and tasked him with transferring the cash to the basis. Next the client’s dying in 2008, Mr. Marchese directed the believe in to shell out the regulation agency $598,931.42. The legal professionals could provide no documents exhibiting that the consumer owed them any lawful charges.
Attorney Basic James also alleges that Mr. Marchese and Ms. Maynard, performing as sole directors of their client’s basis, paid by themselves salaries totaling $758,334. The governance of not-for-revenue organizations have to be overseen by a board with no fewer than a few administrators less than New York regulation, and any payment of directors have to be authorized by directors who have no conflicts of fascination.
The complaint submitted these days also alleges that Mr. Marchese hid the transfers from OAG by hiding the existence of the have faith in. Below New York legislation, fiduciaries of a have confidence in holding charitable interests must sign up the trust with OAG’s Charities Bureau, and supply the office with a report of funds transferred out of the belief. Mr. Marchese never ever registered the rely on with OAG and did not give a report until 2019, just after OAG experienced started its inquiry, experienced uncovered there was a belief, and questioned for an accounting.
Lawyer General James’ motion nowadays seeks a court docket get directing Mr. Marchese and Ms. Maynard to repay the resources they acquired from their client’s estate and foundation, plus interest and economical penalties. Attorney Common James also seeks to bar Mr. Marchese from serving as a fiduciary of an estate or a belief holding a charitable curiosity for a period of five several years, and bar both of those men and women from serving as an officer, director, or trustee of a charitable organization for 5 many years.
This make a difference is becoming managed by Assistant Lawyers Standard Peggy Farber and Rebecca Gideon of the Charities Bureau, less than the supervision of Chief of the Trusts and Estates Section Deborah McCarthy, Charities Enforcement Co-Chiefs Emily Stern and Yael Fuchs, and Charities Bureau Chief James Sheehan. The Charities Bureau is a portion of the Division for Social Justice, which is led by Chief Deputy Attorney Common Meghan Fake, and is overseen by Very first Deputy Lawyer Typical Jennifer Levy.