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New York Bankruptcy Attorney Admits Embezzling Funds

Submitted by jhartgen@abi.org on

A New York bankruptcy attorney, Pincus David Carlebach, pleaded guilty on Wednesday in Manhattan federal court to embezzling funds from a client’s bankruptcy estate, the New York Law Journal reported. The government said that Carlebach transferred $30,000 in estate assets to himself for his own use in early 2016. He pleaded guilty before U.S. District Judge Jesse Furman of the Southern District of New York to one count of embezzlement from a bankruptcy estate. In November, Carlebach was suspended from practicing law for alleged misconduct that “threatens the public interest,” according to orders from the Appellate Division, First Department. The suspension order noted that Carlebach had misappropriated about $800,000 of a buyer’s down payment. According to online directories, Carlebach operated a small or solo practice in Lower Manhattan. The U.S. Attorney’s Office said Carlebach faces a maximum sentence of five years in prison and three years of supervised release.