Brooklyn court touts foreclosure rule after Sampson indictment

New York /
Jun.June 10, 2013 12:30 PM

In the wake of state Senator John Sampson’s indictment over the alleged embezzlement of escrowed foreclosure funds, a new rule in Kings County Supreme Court in Brooklyn requires judges to confirm that funds from foreclosure auctions are deposited with the clerk, the New York Post reported.

The reform launched two weeks ago and will soon be administered in other boroughs, Lawrence Knipel, the court’s administrative judge for civil matters, told the Post.

Sampson, also an attorney, had been appointed by Brooklyn judges to serve as a referee in several foreclosures. He pleaded not guilty to last month’s charges that he embezzled $440,000 in escrow funds from four foreclosure accounts.

Attorneys like Sampson are often assigned by civil judges to oversee the auction of a foreclosed property, pay off the mortgage and return any leftover money to the homeowner, the newspaper said. Now, the clerk will inform the judge when the winning bid exceeds the amount owed on the house. The judge will then check if the money was properly deposited in the 60 days after the auction, the Post said. [NYP]Mark Maurer


Related Articles

arrow_forward_ios
Estate Partners' David Aviram, FIA Capital Partners' David Goldwasser and Steve Croman (LinkedIn, Google Maps, Getty)
Steve Croman: I was duped by predatory lender
Steve Croman: I was duped by predatory lender
Sugar Hill’s David Schwartz and 4300 Broadway (TerraCRG, Google Maps)
Major landlord Sugar Hill Capital faces Washington Heights foreclosure
Major landlord Sugar Hill Capital faces Washington Heights foreclosure
Pink Stone's Richard Ohebshalom with 180 Nassau Street (Rich Ohebshalom, Google Maps, Getty)
Pink Stone faces foreclosure on DoBro rental building
Pink Stone faces foreclosure on DoBro rental building
Commercial Real Estate, Foreclosures, Housing Market, Kathy Hochul
Lawmakers push Hochul to restore foreclosure statute of limitations
Lawmakers push Hochul to restore foreclosure statute of limitations
Urban Commons' Salvatore Takoushian and 2-10 West Street (Urban Commons, StreetEasy)
Urban Commons in danger of losing FiDi hotel
Urban Commons in danger of losing FiDi hotel
Eli Karp with 271 Lenox Avenue
Judge appoints receiver on Eli Karp’s Flatbush property
Judge appoints receiver on Eli Karp’s Flatbush property
From left: Hutton Capital's Ron Friedman, BridgeCity’s Allan Lebovits, Toby Moskovits, and Heritage Partners' Michael Lichtenstein along with 225-227 Grand Street in Brooklyn (Getty, Google Maps, Hutton Capital, BridgeCity, Heritage Partners)
Moskovits, Lichtenstein lose another Williamsburg property to bankruptcy
Moskovits, Lichtenstein lose another Williamsburg property to bankruptcy
From left: Omnia Group’s David Paz and Ace Hotel’s Brad Wilson along with 225 Bowery Street (Getty, Google Maps, LinkedIn/David Paz, LinkedIn/Brad Wilson)
Bowery micro-hotel faces foreclosure, $10M judgment
Bowery micro-hotel faces foreclosure, $10M judgment
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...