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trust property or of the $4,087,000 originally transferred into
the trusts.
As a result of the loss of the $4,087,000, each of the two
Marion Family Trusts received $100,000 from the New York State
Lawyers’ Fund for Client Protection.
$975,000 Received From Ira Saferstein
In late January and early February of 1989, Ira Saferstein
(Saferstein) transferred $975,000 to petitioner, as his attorney,
and Saferstein instructed petitioner to purchase with the
$975,000 two certificates of deposit on Saferstein's behalf.
Saferstein understood that the certificates of deposit were to be
held in trust on his behalf by petitioner.
In fact, however, petitioner purchased with the $975,000 two
certificates of deposit in petitioner's name, not in the name of
Saferstein. Petitioner used the two certificates of deposit as
collateral to obtain a personal bank loan. Petitioner did not
inform the bank that the certificates of deposit were not owned
by him, and petitioner never obtained permission from Saferstein
to use Saferstein’s funds or the two certificates of deposit
purchased with Saferstein’s funds for collateral on a personal
loan nor for any other personal purpose.
By letter dated late December of 1990 or early January of
1991, Saferstein informed petitioner that the certificates of
deposit that petitioner was supposed to have purchased and to be
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