DISTRICT ATTORNEY - NEW YORK COUNTY

NEWS RELEASE
May 19, 2009

Contact: Alicia Maxey Greene
212-335-9400

Manhattan District Attorney Robert M. Morgenthau announced today the indictment and arrest of a lawyer for stealing $652,600 in settlement monies from 11 of his personal injury and medical malpractice clients.  

MARC A. BERNSTEIN, 54, of Bernstein & Bernstein, LLP in Manhattan, was arrested on multiple charges of grand larceny and scheme to defraud. The crimes charged in the indictment occurred between March 27, 2007 and April 30, 2009.

The investigation leading to today’s indictment and arrest revealed that BERNSTEIN engaged in a scheme to steal from his victims, most of whom were individuals left physically weakened or disabled by medical malpractice or car accidents. In the typical case, BERNSTEIN had one of his law firm associates negotiate a settlement on behalf of the victim, and Bernstein took control of the incoming settlement monies. Instead of safeguarding these funds and distributing them to his clients, BERNSTEIN stole the money. 

The investigation further revealed that in many instances, the victims received false stories and promises from BERNSTEIN, along with checks from BERNSTEIN that were dishonored by the bank.  In one particular case, BERNSTEIN deposited a $650,000 settlement check into his attorney trust account, but disbursed only $85,000 to the client.  Seven months later, BERNSTEIN admitted to taking almost $400,000 of that client’s share of the settlement funds.  In other cases, where BERNSTEIN offered his clients partial payment, he embarked on a pattern of deception and withholding monies that sometimes lasted for more than a year, with BERNSTEIN sending the clients bad checks, only to finally refuse any further contact with them. BERNSTEIN typically used the stolen money to settle personal debts or make payments to other clients whose money he had misappropriated.

BERNSTEIN was admitted to the New York Bar by the First Judicial Department in 1982.  He was a named partner in the firm Bernstein & Bernstein, LLP. Following an investigation by the Departmental Disciplinary Committee of the First Judicial Department, MARC BERNSTEIN’s license to practice law was suspended. The Supreme Court, Appellate Division, First Department, issued that order of suspension on April 23, 2009.

BERNSTEIN has been indicted on five counts of Grand Larceny in the Second Degree, a class C felony, six counts of Grand Larceny in the Third Degree, a class D felony, and two counts of Scheme to Defraud in the First Degree, a class E felony. A class C felony is punishable by up to 5 to 15 years in prison, a class D felony is punishable by up to 2⅓ to 7 years in prison, and a class E felony is punishable by up to 1⅓ to 4 years in prison.

The investigation is continuing.

Mr. Morgenthau thanked the Departmental Disciplinary Committee of the First Judicial Department, including Chief Counsel Alan W. Friedberg and Counsel Eileen Shields. He also thanked Detective Michael McGinnis of the Special Frauds Squad of the New York City Police Department. 

Assistant District Attorney Leah Keith presented the case to the Grand Jury under the supervision of Special Prosecutions Bureau Chief Thomas Wornom and Deputy Bureau Chief Joan Delaney.  Financial Investigator Greg Waldvogel of the District Attorney’s Office assisted in the investigation, under the supervision of Principal Accountant Investigator Michael Vecchio and Frank Puma, Chief of the District Attorney’s Financial Crimes Bureau.

Defendant Information:

MARC A. BERNSTEIN, 10/8/1954
330 E. 33rd Street
New York, New York

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