Disgraced NY Lawyer Makes Bid to Overturn His Conviction

By Mark Hamblett
New York Lawyer
New York Law Journal
January 29, 2007

Disgraced attorney Perry Reich made his last stand on Friday as he asked a federal appeals court to overturn his conviction for faking a court order.

A federal jury took less than one hour in 2005 to convict Mr. Reich of forging an order by Magistrate Judge Roanne L. Mann and faxing it to an adversary in litigation against a brokerage house, lying to the government to cover up his actions and obstructing a civil proceeding. Mr. Reich, once a Long Island appellate attorney with a varied practice, was sentenced last year to 27 months in prison by Judge Nicholas Garaufis, who said "I'm not sure that any rational lawyer would ever do anything like this. It defies logic."

Attorney Mark Baker of Brafman & Associates argued Friday for Mr. Reich. Eastern District Assistant U.S. Attorney Amy Busa used less than her allotted time to argue Friday that the evidence was sufficient to convict Mr. Reich. The case was heard by Judges Amalya Kearse, Sonia Sotomayor and, sitting by designation, Southern District Judge John Koeltl.

Government Seeks 6-1/2 Years in Prison for NY Lawyer

By Tom Perrotta
New York Lawyer
New York Law Journal

March 24, 2006When Perry S. Reich met with federal prosecutors in March 2004, he had a choice to make: He could admit that he forged a magistrate judge's order and faxed it to an adversary as a joke, and prosecutors would leave the fate of his legal career in the hands of the disciplinary committee rather than a jury.

Mr. Reich said no, and today that decision — which already has ruined his career — may cost him years behind bars. Prosecutors in the Eastern District U.S. Attorney's Office have asked Judge Nicholas G. Garaufis to sentence Mr. Reich to as much as 6-1/2 years in prison for his convictions on forgery, obstruction of justice and making false statements to a federal agent.

The proposed sentence is beyond that recommended by the Probation Department, but prosecutors argue the enhancement is warranted because Mr. Reich relied on his skills as an attorney to manipulate the legal system, refused to admit it and then lied about it on the stand at trial.

"In committing these crimes, the defendant made a mockery of the very judicial system in which he, as an attorney, had worked for 30 years," Assistant U.S. Attorney Amy Busa said in a memo filed to Judge Garaufis.

The prosecution's request for a substantial jail term has dismayed Mr. Reich's appellate attorney, Mark M. Baker of Brafman & Associates.

Mr. Baker, who declined to comment beyond his legal papers, is asking for a sentence of probation and community service with no jail time, largely due to Mr. Reich's otherwise unblemished record and his exalted status among dozens of attorneys and professionals who have known him as a friend, colleague and adversary. Many of those people — including former Appellate Division, Second Department, Justice John Copertino, Assemblyman Mark S. Weprin, D-Queens, and Senator Frank Padavan, R-Queens — wrote letters imploring Judge Garaufis to impose a lenient sentence.

Mr. Baker also submitted an evaluation by Dr. Elliot Kranzler, a psychiatrist, who said it appears that Mr. Reich may be a pathological liar who sincerely believes he did not fax the forged order, whether he did it or not.

"It is possible that Mr. Reich, in the face of the loss of not only his life savings but also his profession and credibility became convinced that he had never sent the fax," Dr. Kranzler wrote. "He has stuck to this story, despite its catastrophic consequences because the lie — if that is what it truly is — has won power over him."
Surprise and Sadness

When Mr. Reich, 57, was convicted last August, it shocked and saddened many in the legal community who knew him as an accomplished appellate attorney and supporter of Republican Party causes in Queens.

He made a name for himself as a clerk in the Appellate Division, Second Department, and then moved on to the state Court of Appeals as a clerk for Judge Vito J. Titone. From there, Mr. Reich set up shop in Lindenhurst, Long Island, where he litigated various civil and criminal cases, with a specialty in appeals. Among those who befriended him and sought his advice, he was known for his keen legal mind.

Prosecutors contend that Mr. Reich misused his knowledge of the law when he attempted to obstruct civil litigation between a brokerage firm, Ryan Beck & Co., and two former clients. Mr. Reich was engaged in similar litigation against Ryan Beck, which had purchased the assets of another brokerage that, according to Mr. Reich, had mismanaged his account, costing him $2 million — his life's savings.

Mr. Reich allegedly faxed a fake order, purportedly signed by Magistrate Judge Roanne L. Mann, and tried to make it look like it came from an adversary, Joel Davidson. In the fake order, Magistrate Judge Mann reversed one of her previous rulings and recused herself from the case.

Mr. Reich hoped, according to prosecutors, that Magistrate Judge Mann would uncover the fraud and discredit Mr. Davidson. At that point, Ryan Beck would be more likely to settle its civil litigation with Mr. Reich.

In light of this scheme, Ms. Busa argues in papers, Mr. Reich intended to cause a loss of $2 million through his criminal conduct.

"Here the evidence clearly shows that the defendant was driven by his significant financial stake in the Ryan Beck litigation — a litigation the defendant was desperate to win at all costs," Ms. Busa wrote.

'Onerous' Sentence

Mr. Baker has expressed outrage at the notion that Mr. Reich's actions were at one time considered a joke, according to testimony from a federal agent at the trial, but were now deemed to constitute a $2 million fraud.

"It was never really believed that [Mr. Reich] had been motivated by any desire to obstruct justice, let alone by a belief that he might thereby reinvigorate his $2 million arbitration claim," Mr. Baker wrote in a letter to the court. "That is certainly a quantum leap backward from what the Government now contends to have been Defendant's malevolent motive for his actions which, it now urges, warrants such an onerous term of incarceration."

In his presentence memorandum, Mr. Baker described Mr. Reich as a "disgraced, humiliated and broken man" who has "truly lost it all." He argued that his suffering — most important, the loss of his livelihood, his public humiliation and accusations at trial that he tried to defraud his dying law partner — were punishment enough. He also stressed Mr. Reich's contributions to his community.

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Top Brooklyn Legal Eagle Caged for Bribery

By Zach Haberman
New York Post
July 6, 2005

The corrupt former head of the Brooklyn Bar Association yesterday was sentenced to more than two years in prison.

"In the twilight of my career, I threw it all away," said Edward Reich, who pleaded guilty to accepting more than $10,000 in kickbacks. Watched by his tearful family, he admitted he was "wrong legally, ethically and morally."

Brooklyn federal court Judge John Gleeson called Reich's pocket-padding an abuse of power and a "corruption of the judicial process" before sentencing the once-prominent lawyer to 27 months in a federal prison.

Reich admitted accepting $10,500 in bribes on five different occasions in exchange for lowering foreclosure prices on properties he presided over at auction as a referee.

"I never intended to harm anyone," Reich said. "My actions are reprehensible."

Gleeson also ordered the former head of a judicial screening committee to pay a $75,000 fine as well as restitution for the bribe money he accepted. Reich also will be disbarred and have his law office closed.

He has to turn himself over to prison officials Oct. 17

Former NY Bar Leader Admits Taking Bribes

By Daniel Wise
New York Lawyer
New York Law Journal
March 22, 2005

Edward S. Reich, a former president of the Brooklyn Bar Association and head of its Judiciary Committee, pleaded guilty yesterday to accepting $10,500 in bribes as a court-appointed referee in Brooklyn.

With jury selection set to begin yesterday morning, Mr. Reich, 68, pleaded guilty to one count of conspiracy before Judge John Gleeson in the Eastern District of New York, exposing him to a sentence of between 33 and 41 months under the U.S. Sentencing Guidelines.

Mr. Reich also agreed to give up his license to practice law. Judge Gleeson will sentence him on June 24.

Eastern District U.S. Attorney Roslynn R. Mauskopf said, "When Edward Reich was a court-

appointed referee, he did not merely sell foreclosed properties, he sold out justice itself."

Evidence presented by both sides during pretrial motions showed that federal agents had pressed Mr. Reich to cooperate with an ongoing investigation into judicial corruption in Brooklyn, on the day he was arrested, Dec. 18, 2003.

Mr. Reich, who as head of the judiciary committee was involved for many years in the evaluation of candidates for the bench in Brooklyn, refused to cooperate, asserting he had no knowledge of wrongdoing by judges.

Sources familiar with the case said the plea agreement contains no requirement that Mr. Reich cooperate in any fashion.

The deal was negotiated over the weekend and followed a court conference Friday at which Judge Gleeson denied Mr. Reich's motion to disallow use of statements he made to FBI agents on the day he was arrested. Neither side would comment on the reasons the two sides were able to reach a last-minute agreement.

Judge Gleeson is considered a stern sentencer but open to defense arguments for leniency. The parties have agreed that the appropriate guidelines range is 33 to 41 months, but under the U.S. Supreme Court's ruling last fall in U.S. v. Booker, 125 S.Ct. 1006, Judge Gleeson could impose a sentence of anywhere from probation to 5 years in prison.

Mr. Reich's attorney, Michael S. Washor, described Judge Gleeson as "not an unsympathetic human being who recognizes [Mr. Reich's] responsibility to the public as he recognizes the loss and shame he has already suffered."

Bribery Scheme

Mr. Reich admitted to accepting $10,500 in bribes in connection with auctions of three properties he had been appointed by Brooklyn justices to oversee. One of the properties was sold because of mortgage foreclosure and the other two because of tax delinquencies. He had been indicted on 16 counts.

It is expected that Mr. Reich will pay $10,500 as restitution.

The bribes had been paid, according to the indictment, to lower the purchase price in the accepted bid or to arrange for the return of a down payment when the winning bidder decided not to go through with the deal. Also, in one case, Mr. Reich was accused of accepting a bribe to allow the bidder to pay less than the 10 percent required as a down payment.

In all, he acknowledged that the bribes netted purchasers gains amounting to $93,000, the key figure in setting the guideline range.

He also admitted submitting an affidavit containing false information in connection with his motion to suppress statements he made to agents on the day of his arrest. As a result of that admission, the guideline range was adjusted upwards to reflect an enhancement for the obstruction of justice.

Mr. Reich faced a significant prosecution case. According to court documents, both a confidential informant and an undercover federal agent had been involved in some of the auctions.

Mr. Reich had also been recorded making compromising remarks, though documents were unclear as to exactly who made the recording.

Among Mr. Reich's comments that the prosecution reported recording were the following:

•• "This transaction never took place."

•• "You have no idea how improper this is."

•• "If it looks clean on the surface, then that's all that matters. You know its perception gentlemen, perception is what counts."

A co-defendant, Jonathan Einhorn, who was accused of paying a $2,000 bribe at one of the auctions, had pleaded guilty in April 2004 and agreed to cooperate with the prosecution.

B'klyn Legal Eagle Pleads to Bribery By John Marzulli New York Daily News March 22, 2005 A politically connected lawyer pleaded guilty yesterday to taking bribes as a court-appointed referee of foreclosure sales in Brooklyn. Edward Reich must resign as a lawyer as part of the plea deal - a stunning downfall for the former vice president of the New York State Bar Association and former president of the Brooklyn Bar Association. Reich, 68, also ran the Torah Club, a chummy gathering of lawyers and judges that had attracted the attention of feds probing judicial corruption in Brooklyn. Reich had no comment yesterday as he tried to sneak out a stairwell used by federal judges. He initially had refused to cooperate with investigators, claiming he had no knowledge of judicial corruption. But as he stood before Federal Judge John Gleeson yesterday, Reich admitted taking $10,500 between May 2002 and June 2003. "I knowingly, willfully and corruptly ... did accept cash bribes," he said. Reich of Manhattan faces up to five years in prison and a $250,000 fine when sentenced. "No one can be above the law, regardless of his position within the bar," Brooklyn U.S. Attorney Roslynn Mauskopf said. Lawyer Pleads Guilty to Corruption Charge By Anthony M. Destefano New York Newsday March 21, 2005 A prominent Brooklyn lawyer who once headed the borough's bar association pleaded guilty Monday to a federal corruption charge. Edward Reich admitted that he agreed to accept cash bribes while he served as court-appointed referee for the sale of foreclosed real property. In a statement read to Judge John Gleeson, Reich said that while he handled the auction sale of property in state court cases, he accepted various payments ranging from $500 to $2,000. In return, Reich told Gleeson, he did favors for the bidders by sometimes lowering the purchase price or agreeing to accept less of a down payment than required. He stated that the payments were received from May 2002 to June 2003. Reich, 68, entered his plea to one count of conspiracy just as jury selection was to begin in his case. Afterward, he tried to evade reporters who were pursuing him by exiting the federal court house in Brooklyn through a little-used staircase. He was scheduled to go to trial yesterday on various bribery-related charges. He agreed to resign from the bar in about two months. Officials said Reich also faces a prison term of 33 to 41 months. Reich also admitted to Gleeson that he had submitted an affidavit to the court last December that he knew contained "materially false information." That false filing will be taken into consideration when Reich's sentence is computed, officials said. In addition to being a prominent lawyer in Brooklyn, Reich had also been a vice president of the New York State Bar Association from 1999 to 2003. He also was an official with the prestigious Torah Club, a social group of Jewish lawyers and judges who gather four times a year at a Brooklyn synagogue. After pleading guilty, Reich did not exit the courtroom from the regular door but went through a side entrance to a staircase not often used by the public as reporters attempted to question him. The stairs are located in a portion of the courthouse occupied by the chambers of the judges and their law clerks. Defense attorney Michael Warshor later said his client did not want to deal with the news media, and he characterized Reich as a man who was pained by the experience of being prosecuted. Federal investigators in Brooklyn tried to turn Reich into a cooperating witness early in their probe of possible state court corruption, records show. But Reich, who was arrested in December 2003, denied that he was involved in any payoffs to judges. Top Lawyer Admits to Bribes By Kati Cornell Smith New York Post March 22, 2005 An ex-president of the Brooklyn Bar Association yesterday copped a last-minute guilty plea to charges he took nearly $11,000 in bribes in exchange for lowering the sale prices on foreclosed properties he oversaw at auction. After his hearing, prominent lawyer-turned-felon Edward Reich then demonstrated just how low he's fallen —— trying to dodge reporters by slipping out a back staircase normally used by judges. Reich, 68, will likely face between 31 and 41 months in prison for a greedy scheme in which he lined his pockets on at least five occasions between 2002 and 2003 by abusing his position as a court-appointed referee. He agreed to fork over $10,500 in restitution and to resign from the bar within the next two months. "I knowingly, willfully and corruptly agreed to accept, and did accept, cash bribes intending to be influenced in my capacity as a referee for the sales of . . . three properties," Reich read quickly from a prepared statement on the day his trial was to begin. Later, the disgraced lawyer tried to give reporters the slip by scurrying down the back staircase as his burly son used his body to block a reporter and slammed a heavy stairwell door behind them. Reich, who once told the FBI he "never turned down money," gained little in the way of a sentence reduction by pleading guilty on the eve of trial, but avoided the public embarrassment that a trial would bring. Arrested NY Lawyer Was Grilled by FBI, Asked to Wear Wire By Daniel Wise New York Lawyer New York Law Journal January 6, 2005 FBI agents a year ago pressed attorney Edward S. Reich, a former president of the Brooklyn Bar Association, to provide information about corruption in the judiciary shortly after they arrested him on bribery charges, a lawyer testified yesterday in a Brooklyn courtroom. Kevin P. O'Donnell, who briefly represented Mr. Reich, said that the agents who arrested Mr. Reich on Dec. 18, 2003, grilled him on whether he knew anything about corruption in the Brooklyn judiciary. Specifically, the agents asked which Brooklyn judges Mr. Reich knew and whether he had made payments to any of them, Mr. O'Donnell said in a federal court hearing on Mr. Reich's upcoming trial. Mr. O'Donnell said that Mr. Reich responded that he had no knowledge of corruption among Brooklyn judges. However, Mr. O'Donnell added, he qualified his answers by saying he was responding "to the best of his knowledge." Mr. Reich's current lawyer, Michael S. Washor, told reporters after the hearing that his client had rebuffed the agents' request that he secretly record conversations as a part of the investigation. An affidavit submitted by the government in connection with the hearing said Mr. Reich's cooperation was sought for "an ongoing investigation into corruption involving the Brooklyn courts." The revelations about the agents' efforts to get Mr. Reich's cooperation came in the context of a motion to suppress statements that he made at the federal office building in downtown Manhattan soon after his arrest. Mr. Reich has been indicted for accepting $11,000 in bribes while acting as a referee appointed by Brooklyn Supreme Court justices to handle foreclosure sales. He faces a maximum sentence of 10 years in prison if convicted of the top count. The indictment accuses him of accepting bribes with respect to the auction of three Brooklyn properties. Mr. Reich accepted the bribes, according to the indictment, to reduce the accepted bid price or to arrange for the return of a down payment when a winning bidder decided not to follow through with a sale. Mr. O'Donnell testified because he was at the center of Mr. Washor's argument that Mr. O'Donnell's legal advice had been so inadequate as to deprive Mr. Reich of effective assistance of counsel. During the morning-long hearing, some of Mr. Washor's arguments appeared to gain traction with Eastern District Judge John Gleeson, who will preside over Mr. Reich's trial, scheduled to start on March 14. Neither side disputed that Mr. O'Donnell was recommended to Mr. Reich by one of the FBI agents who made the arrest. Both sides also agreed that Mr. O'Donnell and the agent, Robert Katzman, had worked together as assistant district attorneys in Queens. Mr. Washor sharply questioned Mr. O'Donnell on why he would have allowed Mr. Reich to talk to the agents when he was claiming his innocence and had nothing to offer in the way of cooperation. At one point, Judge Gleeson asked whether talking to the agents under those circumstances was "a prescription for disaster." Judge Gleeson also closely questioned Mr. O'Donnell about a possible discrepancy in what would have happen to Mr. Reich if he were to cooperate. Mr. O'Donnell had testified that when he asked Assistant U.S. Attorney Patricia Pileggi whether it was likely that Mr. Reich would "walk" if he cooperated fully, she responded "probably not." But Mr. O'Donnell had acknowledged during his cross examination that he had told Mr. Reich that "he might not be charged if he cooperated, but he [Mr. O'Donnell] could not make any promises." When Judge Gleeson questioned Mr. O'Donnell about the apparent discrepancy in the two statements, the lawyer conceded that Ms. Pileggi's statement was "inconsistent to a certain extent" with the information he had given Mr. Reich. Also on cross-examination, Mr. O'Donnell acknowledged being "incredibly embarrassed" that he had not secured a proffer agreement before Mr. Reich started talking to the agents. Judge Gleeson, though, questioned whether the failure to secure a proffer agreement prejudiced Mr. Reich. Such agreements help the prosecution, he suggested, because they allow for the use of statements made during a proffer session that would otherwise be precluded by the federal rules of criminal procedure. Judge Gleeson also questioned whether the right to counsel attached when someone has been arrested on a warrant but has not yet been charged with a crime.                     NY Lawyer Could Be Indicted Soon By Daniel Wise New York Lawyer March 18, 2004 Edward S. Reich, a former Brooklyn Bar Association president who was accused in a federal criminal complaint of accepting bribes, is expected to be indicted in the Eastern District by Monday. The January complaint accused him of accepting bribes while acting as a referee appointed by Brooklyn Supreme Court judges to oversee foreclosure sales. Prosecutors normally must bring an indictment within 30 days of a complaint filing. But Mr. Reich, after two 30-day extensions, has refused to agree to any more. That means prosecutors must obtain an indictment by Monday, his lawyer, Robert Katzberg, said yesterday. Meanwhile, a co-defendant in the case, Jonathan Einhorn, has agreed to another 30-day extension, according to his lawyer, Alan Vinegrad of Covington & Burling. Mr. Vinegrad added that his client has not entered into a plea agreement. Sources said prosecutors often agree to delay indictments to facilitate plea talks. http://www.nylawyer.com/news/04/03/031804a.html Ex-Brooklyn Bar Boss in Bribe Shocker Lawyer Appointed to Watch Foreclosures Takes Bribe by Tom Topousis and Kati Cornell Smith New York Post January 21, 2004 A prominent lawyer appointed by the state Supreme Court to oversee auctions of foreclosed properties was hauled before a Brooklyn federal judge yesterday on charges of taking $11,000 in bribes in exchange for lowering sale prices and giving favored treatment to bidders. Edward Reich, a former president of the Brooklyn Bar Association, was charged after an undercover probe by the FBI recorded him accepting cash from real estate speculators, with the price of a bribe sometimes set by the flip of a coin, according to the federal complaint. Prosecutors say that in the sale of three properties Reich either lowered prices by as much as $45,000 or illegally refunded deposits after the speculators decided they were no longer interested. "This is a classic case of corruption," said Brooklyn U.S. Attorney Roslynn Mauskopf. Reich's lawyer, Robert Katzberg, said his client is innocent and will be cleared. In all three cases, Reich was dealing with property speculator Jonathon Einhorn and a second buyer who acted as a confidential source to the FBI. Einhorn, 37, was also charged. During one deal, monitored by an undercover FBI agent, Reich allegedly explained to the speculators how he would be able to conceal the illegal refund of a $15,000 deposit on a sale - less his $5,000 bribe. "If it looks clean on the surface, then that's all that matters. You know it's perception, gentlemen, perception is what counts," Reich explained, adding, ". . . reality is bull-. Perception is what counts." Reich, 67, was freed on a $500,000 bond. Former Brooklyn Bar President Arrested for Fraud By Daniel Wise Newsbriefs New York Law Journal January 21, 2004 Edward S. Reich, a former president of the Brooklyn Bar Association and current vice president of the New York State Bar Association was charged with receiving $11,000 in bribes yesterday in a criminal complaint unsealed in the Eastern District of New York. Mr. Reich was accused of accepting bribes in three auctions in Brooklyn where he was acting as a court-appointed referee overseeing the sale of real estate. According to the complaint, in each instance a "confidential source" paid Mr. Reich a bribe to reduce a publically announced sale price or a required down payment. In one of the sales, it was charged that a Jonathan Einhorn joined a "confidential source" in making the payment. Mr. Einhorn was charged in the complaint along with Mr. Reich and both men face a maximum sentence of 10 years in prison if convicted. Mr. Reich is required to post $500,000 in property to secure a bond by next Monday. His attorney, Robert F. Katzberg, could not be reached for comment. — Daniel Wise              Lawyer in Bribery Case Alienated City Bar Panel Daniel Wise New York Law Journal 01-22-2004 A former president of the Brooklyn Bar Association who was arraigned on federal bribery charges Tuesday was the subject of complaints from officials of the Association of the Bar of the City of New York that he had created problems for its review of Brooklyn judicial candidates, sources reported yesterday. Edward S. Reich pleaded not guilty and is free on $500,000 bail on charges that he accepted $11,000 in bribes while overseeing the court-ordered sale of foreclosed properties. Mr. Reich was accused of receiving bribes relating to the sales of three properties that were auctioned under his supervision as a court appointed referee. He was charged with accepting the bribes to either reduce the accepted bid price or to arrange for the return of a down payment when the successful bidder decided not to follow through with the deal. According to an affidavit submitted by the FBI agent who oversaw the investigation, Mr. Reich made a number of incriminating statements which were tape recorded. Mr. Reich's lawyer, Robert F. Katzberg, said that his client "denies the allegations and looks forward to being vindicated at trial." Mr. Katzberg described Mr. Reich as "a respected member of the bar for 40 years" and said he has not cooperated with the prosecution. Mr. Reich had participated since the mid-1980s as the Brooklyn Bar Association's representative to the City Bar's judiciary committee when it evaluated Brooklyn candidates for the bench. As the chairman of the Brooklyn bar's judiciary committee, Mr. Reich was authorized to participate when the City Bar committee reviewed candidates for the bench in Brooklyn. City Bar committee members were put off by Mr. Reich's apparent championing of sitting judges he was close to, sources said. One source said that the final straw came this past summer when Mr. Reich sought to limit the judiciary committee's questioning of former Justice Edward M. Rappaport, who was being considered for certification to serve beyond the age of 70. Justice Rappaport was not recertified. City Bar officials complained over the summer to Brooklyn Bar president Gregory T. Cerchione, sources said, who agreed not to reappoint Mr. Reich as co-chairman of the Brooklyn bar's judiciary committee, a post he has shared for the last several years with Barry Kamins of Flamhaft, Levy Kamins Hirsch & Rendeiro. Mr. Cerchione said he would not comment on communications from City Bar officials, but he added that Mr. Reich had asked not to be re-appointed. Mr. Reich, 67, a plaintiff's personal injury lawyer, has a rough-hewn, in-your-face style that grated on officials of the New York State Bar Association, where he has served as vice president from Brooklyn and Staten Island for the past five years, several sources said. Two sources described Mr. Reich as a "bragaddocio" who was not shy about describing himself as a "millionaire." Another source reported that Mr. Reich once described himself as "Governor Pataki's 'best friend.'" Several years ago Mr. Reich, for the second time, unsuccessfully sought election as the State Bar's treasurer, a stepping stone to the group's presidency. Last summer, unhappy with Mr. Reich's inability to advance to a leadership position in the State Bar, the leadership of Staten Island and Brooklyn Bar Associations rebuffed his bid to fill out a possible sixth year as executive vice president. Mr. Reich also served from 1982 to 1990 on the grievance committee that oversees the discipline of lawyers from Brooklyn, Queens and Staten Island. The criminal complaint against Mr. Reich was dated Dec. 17 but not unsealed until he was arraigned before Eastern District Magistrate Judge Joan M. Azrack on Tuesday. A source close to the case said that Mr. Reich had been first arrested on Dec. 18, but that he was not required to appear in court for more than a month. Some experts suggested that the delay might indicate that the prosecution was trying to get Mr. Reich to cooperate. William Muller, a spokesman for the Eastern District U. S. Attorney's Office, declined to comment. Two of the questioned sales took place on June 12, 2003, and the third more than a year earlier on May 15, 2002. In one of the June 12, 2003, sales, Mr. Reich was quoted as saying "this transaction never took place" after allegedly accepting a $2,000 bribe to reduce the auction price by $45,000 to $350,000. A source close to the case said that one of the bidders on the properties cited in the charges was Russell Carbone, a New York City lawyer, who was convicted in 1999 of obstructing justice and suborning perjury. The source said that the complaint drew upon information supplied by Mr. Carbone as a "confidential" source. Court Appointments Mr. Reich received at least 135 court appointments from September 1995 to September 2003, all of them in Brooklyn, according to records from the Office of Court Administration. In most instances he was asked to be a referee, who essentially holds property until it is sold, or a receiver, who manages property until a sale. Referees currently are paid $525 for their services on a case. Court records contained little information about the total amount of fees he received, but in one instance in 2003 he received more than $26,000 for work as a referee. He was first appointed to that case in 1999. In another case, when he was appointed a guardian in May 2001, Mr. Reich received $30,000 in fees in March 2003. Mr. Reich won appointments from a variety of Brooklyn judges, though some appointed him more frequently than others. Former Justice Edward K. Pincus appointed Mr. Reich 13 times from 1995 until he left the bench in 2002, while Supreme Court Justice Michael J. Garson appointed him 12 times since 1995. (It should be noted that under the New York "Uniform Delinquent Tax Enforcement Act" the owner's equity in the property is forfeited to the state.)

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