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Rhinebeck, NY - Rabbi Very Disappointed as Real estate Agent's Bankruptcy Hits Chabad's Plans |
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Rabbi Hecht file
Rabbi Hanoch Hecht, director of the Rhinebeck Jewish Center and co-director of Chabad of Dutchess County, said Rhinebeck real estate agent Lance Lavender had accepted an $8,500 down payment from him for the purchase of some land in the town for the new center.
Hecht said Lavender told him the money had been placed in an escrow account and would be returned to the group if the deal fell through.
When negotiations for the land sale broke down, Hecht said he asked Lavender for the money and was told it was not available. A short time later, the rabbi said, he learned Lavender had filed under Chapter 7 of the federal bankruptcy law and had no assets.
"Now I'm told I must get in line with the rest of the creditors," Hecht said.
Lavender's attorney, Michael Wrobel, confirmed Lavender was in bankruptcy proceedings.
"Creditors have the opportunity to ask for money if any is found," Wrobel said. "The judge has extended the period of time for creditors to do that, but at this point, (Lavender) has no assets."
Hecht said he had met with a Dutchess County assistant district attorney, Edward Whitesell, and asked if Lavender could be charged with a crime.
"He told me Mr. Lavender could not be prosecuted," Hecht said. "I was very disappointed with that answer.
"He (Lavender) wronged us and he wronged other people," he said. "It doesn't matter if it's an individual or a house of worship. Stealing is still stealing."
Whitesell said he sympathized with Hecht's plight, but in order to prove Lavender had committed the crime of larceny, he would have to prove he intended to steal the money at the time he placed it in the escrow account.
"The issue with all these kinds of cases is the issue of intent," the prosecutor said. "The question is: Is what he did a violation of a contract or is it a crime? And if you can't prove criminal intent, then the person is stuck having to file a civil suit. In this case, it's a civil issue, but there's no money to collect."
Lee Park, spokesman for state Attorney General Andrew Cuomo, said the agency sometimes prosecutes such cases, either in civil or criminal court, if investigators can establish a pattern of such behavior. He said Hecht had discussed his case with Vincent Bradley, assistant attorney general in charge of the Poughkeepsie office.
"It would be helpful if anyone else who feels they have been defrauded (by Lavender) contact our office, because the more complaints we get, maybe we can build a case," Park said.
In the meantime, Hecht said, his organization was resuming fundraising efforts to build the Jewish Center.
"What happened has inspired us to fight this darkness with a little bit of light, to work that much harder to make the center a reality," the rabbi said.
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Read Comments (18) — Post Yours »
1
Jul 20, 2009 at 10:08 AM Anonymous Says:
I'm sorry this happened, but lets try to learn from it. In any real estate transaction the escrow agent should be a third-party, not the seller. Often it's the seller's lawyer or real estate agent. There should be a written escrow agreement and the check should state that it is being paid to an escrow agent - i.e. the check should be made payable to "Attorney Jack Smith, as Escrow Agent" or "Prudential Realty, as Escrow Agent." Don't take short cuts. It's worth hiring a lawyer if you are a buyer to make sure the paperwork is in order.
2
Jul 20, 2009 at 10:07 AM Anonymous Says:
Why are they acting so surprised. This is standard policy in a Chapter 7 filing. You don't turn over a deposit to a real estate agent in his personal or corporate capacity. You either write the check to an escrow account separate from the broker at a bank OR you due very careful due dilligence of a larger real estate firm (which is not the case with Lavendar who operated a small business). The chabad situation is unfortunate but their claim should have no priority over any other claim.
3
Jul 20, 2009 at 10:05 AM AuthenticSatmar Says:
8500$ doesn't seem that devastating to plans to build a center that costs millions.
4
Jul 20, 2009 at 10:32 AM Anonymous Says:
this seems like a no brainer...what talmid chacham would write a deposit check to the broker rather than an independent escrow agent in a real estate transaction for ANY amount of money?? This was totally irresponsible.
5
Jul 20, 2009 at 10:38 AM yosse nathan Says:
#3 AMAuthenticSatmar Says: 8500$ doesn't seem that devastating to plans to build a center that costs millions.
since you make it sound that eight thousand dollars is not so much money , why don't you please write a check for this amount and cover the money for them . my good friend , when you don't have extra money then no matter how little it is , it is still that much harder to get.
6
Jul 20, 2009 at 10:40 AM just a hocker Says:
in many jurisdictions - including florida - brokers act as attorneys do here - including accepting deposits for escrow
hakol keminhag hamedinah
7
Jul 20, 2009 at 10:47 AM Anonymous Says:
“ in many jurisdictions - including florida - brokers act as attorneys do here - including accepting deposits for escrow
hakol keminhag hamedinah ”
If the minhag is to write escrow checks to principals or agents rather than independent third parties than, by definition, you would have undertaken the proper due dilligence over that party's financial statements. Even though the real estate agent or lawyer might legally be allowed to "accept" an escrow payment and under the ethics rules cannot comingle those funds with other client accounts, you are not obligated to pay it to the broker and parties routinely set up independent accounts especially when you are dealing with small brokers or solo practioners. Following a stupid minhag does exonerate you from negligence.
8
Jul 20, 2009 at 11:46 AM Anonymous Says:
Though I would want my attorney to be escrow agent, and for no funds to go to ANYONE until closing, some banks selling foreclosed property will no longer take an offer without THEIR real estate broker being in possession of the deposit.
I have turned down a few of those deals. But, also lost out on good ones because of it.
However, for the broker to not place these funds in a seperated escrow account may be criminal in some areas. In others he may use an assorted escrow account.
But, either way, there is nothing to physically stop him from violating that escrow.
He may feel that if he is going bankrupt, he may as well "go all the way."
Thank G-d the amount is such a small percentage of the overall deal. I do have a problem seeing the "Drama" in it. Yes, he got ripped of. Stuff happens. Stuff happens to all of us." He should have maybe been more careful in his handling of the matter, but not every biologist is a physicist, and not every talmid chochom is an attorney.
9
Jul 20, 2009 at 11:55 AM Anonymous Says:
“ Though I would want my attorney to be escrow agent, and for no funds to go to ANYONE until closing, some banks selling foreclosed property will no longer take an offer without THEIR real estate broker being in possession of the deposit.
I have turned down a few of those deals. But, also lost out on good ones because of it.
However, for the broker to not place these funds in a seperated escrow account may be criminal in some areas. In others he may use an assorted escrow account.
But, either way, there is nothing to physically stop him from violating that escrow.
He may feel that if he is going bankrupt, he may as well "go all the way."
Thank G-d the amount is such a small percentage of the overall deal. I do have a problem seeing the "Drama" in it. Yes, he got ripped of. Stuff happens. Stuff happens to all of us." He should have maybe been more careful in his handling of the matter, but not every biologist is a physicist, and not every talmid chochom is an attorney.
”
What drama?? He lost the money because he didn't check out who he was giving it o hold in escrow and is now responsible to either recover it or replace it from his own funds.. You make this sound very complicated. Its not.
10
Jul 20, 2009 at 12:24 PM Hate em Tatem Says:
“ Though I would want my attorney to be escrow agent, and for no funds to go to ANYONE until closing, some banks selling foreclosed property will no longer take an offer without THEIR real estate broker being in possession of the deposit.
I have turned down a few of those deals. But, also lost out on good ones because of it.
However, for the broker to not place these funds in a seperated escrow account may be criminal in some areas. In others he may use an assorted escrow account.
But, either way, there is nothing to physically stop him from violating that escrow.
He may feel that if he is going bankrupt, he may as well "go all the way."
Thank G-d the amount is such a small percentage of the overall deal. I do have a problem seeing the "Drama" in it. Yes, he got ripped of. Stuff happens. Stuff happens to all of us." He should have maybe been more careful in his handling of the matter, but not every biologist is a physicist, and not every talmid chochom is an attorney.
”
"He may feel that if he is going bankrupt, he may as well "go all the way."
That is not correct. Such an act would be considered fraud and the agent would lose his bankruptcy protection.
Unfortunately, Rabbi Hecht did not handle this correctly. He may not know much about real estate and gave over money to someone he trusts. Why is the prosecutor only sticking to larceny? What about false pretenses?
11
Jul 20, 2009 at 01:06 PM Oh no... Says:
Only pay escrow to a reputable attorney. Attorneys also have been known to steal from trust accounts. Ask for a copy of the party's bonding insurance policy as a matter of policy. If none, take a hike and protect your money. Chazal teach us that.
12
Jul 20, 2009 at 01:38 PM Anonymous Says:
“ "He may feel that if he is going bankrupt, he may as well "go all the way."
That is not correct. Such an act would be considered fraud and the agent would lose his bankruptcy protection.
Unfortunately, Rabbi Hecht did not handle this correctly. He may not know much about real estate and gave over money to someone he trusts. Why is the prosecutor only sticking to larceny? What about false pretenses?
”
Has anyone asked what background checks rabbi hecht did before turning over money to this ganef. Were they friends, did they have some relationship of sorts??
13
Jul 20, 2009 at 03:11 PM awacs Says:
“ Has anyone asked what background checks rabbi hecht did before turning over money to this ganef. Were they friends, did they have some relationship of sorts?? ”
Someone who lost money to a New York attorney can file a claim with the Lawyer's Fund for Client Protection, and - in most cases - be made whole. A powerful incentive for trusting a lawyer, as opposed to a real estate broker.
14
Jul 20, 2009 at 05:31 PM sam Says:
i think he will loose more then gain from taking this to the public over 8500!!!!!!
if he has $$$ then get over it and if he doesnt have $$ he should not have baught it in the first place!! u must chose your battles!
15
Jul 20, 2009 at 06:54 PM Jew Says:
is this Lavender a JEW?
Bring case to the Beis Din!
16
Jul 20, 2009 at 06:14 PM Anonymous Says:
Maybe it is the R'SHO way of stopping the Messianists?
17
Jul 20, 2009 at 08:25 PM Anonymous Says:
maybe somebody on vois iz neias will give him the deposit? less bashing more doing
18
Jul 20, 2009 at 11:30 PM me Says:
"he would have to prove he intended to steal the money at the time he placed it in the escrow account."
As mentioned by some other posters eschrow money is supposed to be seperate and sacred. It is not a personal piggy bank for someone to dip into for a short term bring loan. That escrow money IS NOT HIS! IT DOES NOT BELONG TO HIM. I belive messing with escrow monies is criminal. In the case of a lawyer a sure way to get disbarred is to start "borrowing" from your escrow account.