Earlier today, Hyun W. Lee, a disbarred attorney from Queens, was sentenced to 54 months in prison for wire fraud. The sentencing took place in federal court in Brooklyn and was presided over by United States District Judge Pamela K. Chen. Lee, also known as "Michael Lee," was found guilty of defrauding his real estate clients and their counterparties through misuse 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 to the government and $3.29 million in restitution to his victims. He had pleaded guilty to wire fraud charges in December 2023.
John J. Durham, United States Attorney for the Eastern District of New York, announced the sentence and commented on the severity of 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 how Lee exploited trust within the Korean-American community in Queens, where many immigrants rely heavily on legal representatives due to limited experience with legal systems.
Lee was licensed as an attorney by New York State since 2003 and operated out of Flushing, Queens. His disbarment occurred on March 11, 2020, following charges by the Grievance Committee related to misappropriation of client and third-party funds.
Between February 2018 and May 2023, Lee convinced clients and counterparties to entrust him with funds under false pretenses related to real estate transactions. Instead of safeguarding these funds as promised, he used them for personal expenses such as gambling at casinos and covering costs at a restaurant he co-owned.
To maintain this scheme, Lee fabricated documents suggesting that client funds were secure when they were not. Although records showed nearly $3 million supposedly held in escrow accounts under his management, only about $25,000 remained due to misappropriation.
Victims affected by Lee's actions or similar misconduct by other New York lawyers may seek compensation through claims filed with the Lawyer’s Fund for Client Protection via phone or email contact provided.
The prosecution was managed by Assistant U.S. Attorney Hiral D. Mehta from the Office’s Business and Securities Fraud Section with support from Special Agent Martin Sullivan.
