LI Attorney Stole $25K From Escrow Account During Home Sale: DA

RIVERHEAD, NY — A Calverton attorney was arrested after accusations that he stole $25,000 held in an escrow account in connection with a home sale, Suffolk County District Attorney Ray Tierney said Wednesday.

According to Tierney, Peter A. Saad, Jr., 46, was arrested and charged with two counts of third-degree grand larceny. Saad, the principal attorney at the Law Offices of Peter A. Saad, Jr., P.C., based in Riverhead, was accused of having stolen $25,000 from his attorney escrow account over a two-month period in 2020, Tierney said.

Saad, Tierney said, was hired in 2020 to represent a client in the sale of his home. During the real estate transaction, it was discovered that the home had permit issues that needed to be resolved, and that required money be left in escrow after the closing held on September 3, 2020, the DA said. All parties to the sale agreed to keep $25,000 in Saad’s escrow account until the outstanding permit issues were resolved, Tierney said.

After the closing, Saad stopped responding to the parties, failed to return the escrow funds, and
instead, spent the money on his own personal expenses, Tierney said. Subsequently, it was determined that $5,000 was due to the purchasers of the home and the remaining $20,000 was due to the seller of the home, who was Saad’s client, Tierney said.

Saad has been suspended from the practice of law since June 3, 2022, Tierney said.

On Wednesday, Saad surrendered to the District Attorney’s office, and was arraigned before First District Court Judge Rosann Orlando on the two counts of third-degree grand larceny, felonies, Tierney said.

His offenses are considered non-bail eligible under New York State law, and therefore he was released on his own recognizance, Tierney said.

His next court date is on January 2, and he is being represented by Gerard Donnelly, who was not immediately available for comment.

"The allegations against this defendant represent a betrayal of trust and of the fiduciary duty he owed to his client," said Tierney. "My office remains committed to prosecuting all manner of thefts, including those committed by lawyers."

Tierney asked that anyone who believes they may have been victimized by Peter A. Saad, Jr., call the Suffolk County District Attorney’s Office at 631-853-4626.