Say Lawyer Looted Escrow to Gamble

Say Lawyer Looted Escrow to Gamble

A former Queens attorney has been indicted on charges that she allegedly took over $100,000 from escrow accounts belonging to several clients to fuel her purported gambling addiction, it was announced.

Queens District Attorney Richard A. Brown identified the suspect as 46-year-old Arelia Taveras, presently residing in Bloomington, Minn., who was arraigned last Wednesday, Nov. 12 in Queens Criminal Court.

"According to the charges, the defendant not only violated the trust that her clients placed in her but she let down the entire legal system which counts on members of the bar to conduct themselves in an ethical matter," Brown said in a press release. "[She] has since been disbarred because of her actions and now faces serious criminal charges."

As noted in the indictment, Taveras allegedly accepted $2,500 from a buyer as a contract deposit and an additional $22,500 as a down payment on a cooperative apartment in Bayside that she was selling.

It is further alleged that the buyer's application was subsequently denied by the cooperative board and that when she tried to get her deposit back Taveras refused to return the money.

After numerous requests, according to the charges, the buyer's attorney received a call from Taveras stating that she would not repay the money and that she was in a rehabilitation center in Colorado.

In addition, according to the indictment, Taveras is accused of ripping off three clients, including one who retained her in connection with a real estate transaction. Reportedly, Taveras failed to release $10,000 of the client's money that was held in escrow.

Another client was allegedly bilked of $40,000 stemming from the sale of commercial property. Taveras is accused of stealing $34,142 from a third client who allegedly retained her to represent him in connection with a divorce proceeding and a refinancing of his home.

And finally, Taveras is alleged to have stolen $1,500 from a colleague who lent her the money for personal expenses and was repaid with a check that bounced.

During a videotaped statement submitted by Taveras to the Grievance Committee in response to one of their inquiries, the suspect allegedly said she had taken client money because of a gambling addiction and blamed the Grievance Committee for not properly super- vising young attorneys.

Later, she allegedly told detectives that she was a personal friend of the president of the Dominican Republic and that she could disappear in the Dominican Republic and never be found if she chose to do so. Reportedly, she also told detectives that she could not believe she was being arrested, that the alleged thefts were not a big deal and that she would pay back all of the money. Taveras was disbarred in June 2007.

In September 2008, U.S. District Court Judge Renee Bumb dismissed a $20 million racketeering lawsuit filed by Taveras against seven casinos. In her lawsuit, she alleged that the casinos had a duty to stop her from gambling by claiming that gambling was a hazardous endeavor worthy of special protections.

In her ruling, Judge Bumb wrote, "Playing blackjack, roulette or the slots bears no likeness to dumping toxic waste. She [Taveras] spent money on the bona fide chance that she might win more money. In short, she gambled."

Taveras was charged in the 11- count indictment with four counts of third-degree grand larceny, one count of fourth-degree grand larceny, five counts of first-degree offering a false instrument for filing and one count of first-degree scheme to defraud.

During the arraignment last Wednesday, Acting Queens Supreme Court Justice John Latella ordered the suspect held on $50,000 bail and to return to court on Jan. 7, 2009. If convicted on the charges, Taveras could face up to seven years in prison.

The case was investigated by members of the Queens District Attorney's Detective Bureau, including Detectives Joseph Brancaccio and Lester Frank and Sgt. Evelyn Alegre under the supervision of Chief Investigator Lawrence J. Festa and Deputy Chief Investigator Albert D. Velardi.

The case is being prosecuted by Assistant District Attorney Carmencita N. Gutierrez, deputy bureau chief of the District Attorney's Integrity Bureau, under the supervision of James M. Liander, bureau chief.