Editor's note: FEDs, don't forget about the fraudulent lawyers and judges in the Probate Court of Cook County who dispersed the Estate of Alice R. Gore for their own benefit. Lucius Verenus, Schoolmaster, ProbateSharks.com
Attorney charged with misusing $2.3 million of couple's savings
Attorney Kathleen Niew was charged with 10 counts of wire fraud in an indictment unsealed today. (Kathleen Niew Facebook photo)
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A suburban attorney whose law license was suspended in May was arrested today on federal fraud charges for allegedly misappropriating more than $2.3 million from a couple who entrusted her with their life savings.
Kathleen Niew, 57, was charged with 10 counts of wire fraud in an indictment unsealed today following her arrest at her office in Oak Brook, according to the U.S. Attorney’s Office. Niew, of Burr Ridge, is scheduled to be arraigned at 3 p.m. today before U.S. Magistrate Young Kim at the Dirksen U.S. Courthouse.
The Tribune detailed many of the allegations against Niew in a series of articles this year about the couple's lawsuit against her and the efforts by state regulators to suspend Niew's law license. In addition to her long legal career, Niew is an author, seminar speaker and has hosted an hour-long Saturday morning call-in radio show in which she gives estate and financial planning advice.
According to the indictment, the victims transferred $2.34 million into Niew's attorney escrow account to be used for closings on commercial real estate transactions. Between January 2010 and December 2012, Niew allegedly used the funds for her own benefit, contrary to what she told the couple and others, prosecutors said.
Without the couple's knowledge, Niew used their funds to finance the purchases of various mining operations and not to purchase any commercial property for the victims, the charges alleged. As part of the fraud scheme, Niew arranged to receive a 20 percent finder's fee for herself from a mining operation in exchange for providing it approximately $1.5 million in funds that belonged to her clients, prosecutors said.
She falsely told the couple that their funds were available in her escrow account and were to be used for closings, the charges alleged. She further concealed her fraudulent conversion of funds by telling her clients that the bank had erroneously sent the funds intended for closings to the wrong bank accounts, even though she had not directed any such wire transfer of the clients' funds to the title companies to purchase real estate, the indictment alleged.
The couple, Jamal and Leda Khoury, of Oak Park, were not named in the indictment. Their attorney told the Tribune earlier this year they were left financially and emotionally devastated by the ordeal.
The Tribune reported earlier this month that the hearing board for the Attorney Registration and Disciplinary Commission had found "clear and convincing evidence" of misconduct and recommended Niew be disbarred.
jmeisner@tribune.com | Twitter: @jmetr22b
KawamotoDragon.com
Kathleen Niew, 57, was charged with 10 counts of wire fraud in an indictment unsealed today following her arrest at her office in Oak Brook, according to the U.S. Attorney’s Office. Niew, of Burr Ridge, is scheduled to be arraigned at 3 p.m. today before U.S. Magistrate Young Kim at the Dirksen U.S. Courthouse.
The Tribune detailed many of the allegations against Niew in a series of articles this year about the couple's lawsuit against her and the efforts by state regulators to suspend Niew's law license. In addition to her long legal career, Niew is an author, seminar speaker and has hosted an hour-long Saturday morning call-in radio show in which she gives estate and financial planning advice.
According to the indictment, the victims transferred $2.34 million into Niew's attorney escrow account to be used for closings on commercial real estate transactions. Between January 2010 and December 2012, Niew allegedly used the funds for her own benefit, contrary to what she told the couple and others, prosecutors said.
Without the couple's knowledge, Niew used their funds to finance the purchases of various mining operations and not to purchase any commercial property for the victims, the charges alleged. As part of the fraud scheme, Niew arranged to receive a 20 percent finder's fee for herself from a mining operation in exchange for providing it approximately $1.5 million in funds that belonged to her clients, prosecutors said.
She falsely told the couple that their funds were available in her escrow account and were to be used for closings, the charges alleged. She further concealed her fraudulent conversion of funds by telling her clients that the bank had erroneously sent the funds intended for closings to the wrong bank accounts, even though she had not directed any such wire transfer of the clients' funds to the title companies to purchase real estate, the indictment alleged.
The couple, Jamal and Leda Khoury, of Oak Park, were not named in the indictment. Their attorney told the Tribune earlier this year they were left financially and emotionally devastated by the ordeal.
The Tribune reported earlier this month that the hearing board for the Attorney Registration and Disciplinary Commission had found "clear and convincing evidence" of misconduct and recommended Niew be disbarred.
jmeisner@tribune.com | Twitter: @jmetr22b
KawamotoDragon.com
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