Former Long Island Attorney Bilked Clients Of Thousands Meant For Escrow Account: DA

STONY BROOK, NY — A former Long Island attorney turned himself in Monday to answer charges in connection with his bilking clients of thousands in funds that he was supposed to have kept in escrow accounts, and in at least one of the cases he used the money for personal and business expenses, prosecutors say.

Douglas Valente, the principal of the Valente Law Group based in Stony Brook, is alleged to have stolen over $425,000 from two clients, including an elderly person and a mortgage lender, that was supposed to have been held in trust in his attorney escrow account over a six-months in 2020, according to prosecutors.

Valente, 56, originally had his law practice in Smithtown, but it later moved to Stony Brook, a spokeswoman for Suffolk District Attorney Ray Tierney's office said. Valente now lives in Boca Raton, Fla., she said. It not clear where he previously lived on Long Island.

Between April 14 through May 31, 2020, Valente is alleged to have stolen $181,201 from a 78-year-old woman whom he represented in the sale of her home, and the proceeds of the sale were put into his escrow account, prosecutors said.

Valente only sent the required half of the funds from the sale to the woman, not the half to her matrimonial attorney who was supposed to hold the money in escrow until her divorce was finalized, according to prosecutors.

When her divorce was finalized, she was unable to obtain the remaining proceeds from the sale of her house, prosecutors said.

Between Sept. 28 and Oct. 13, 2020, Valente stole $248,027 from the mortgage lender, Guaranteed Rate Inc., after representing the company in a settlement agreement during the refinancing of a home, according to prosecutors.

The company wired money to Valente’s escrow account to be dispersed, but Valente failed to send a portion of the proceeds of the refinanced mortgage to the prior mortgage company to pay off the existing mortgage, prosecutors said.

Guaranteed Rate Inc. then had to pay off the existing mortgage for $248,027, and Valente allegedly used the funds belonging to both clients on his own personal and business expenses, prosecutors said.

Tierney described Valente's actions as having breached "his fiduciary duty to his clients."

“As a result of an extensive investigation done by my office, the defendant will be held accountable for these deceitful actions," he said.

Valente was arraigned by Judge Richard Ambro in Riverside on charges of two counts of second-degree grand larceny, a felony.

Valente, who is not eligible for bail under state law, was ordered to surrender his passport and was released on his own recognizance. His attorney, John Carman of Garden City, did not respond to a request for comment.

Valente is is due back in court on Dec. 14.

Tierney's office is asking anyone who might believe they have been victimized by Valente, to call investigators at 631-853-5602.