Lawyer in Retired Judge’s Guardianship Case To File Lawsuit
by Charles Sweeney (charles@brooklyneagle.net), published online 09-27-2007

Action Will Allege Financial Mismanagement, Fraud, Theft By Charles SweeneyBrooklyn Daily EagleADAMS STREET — An attorney for a relative of a retired judge whose estate was allegedly bilked out of several hundred thousand dollars by a court-appointed lawyer who has so far escaped accountability has decided to take his case to another venue — federal court.
Attorney Ezra P. Glaser, who represents the niece of retired Civil Court Judge John Phillips, announced at the conclusion of a guardianship court hearing on Wednesday that he was preparing a federal action against Emani P. Taylor, the former property guardian accused of pilfering just over $750,000 from Phillips’ estate without court approval.
Glaser’s planned federal filing stems from frustration at the guardianship court’s failure so far to hold Taylor accountable for her payments to herself and her relatives, despite her own admissions that she did so without the court’s prior approval. Accusing the former guardian of selling Phillips’ properties at unpublished auctions and misappropriating the proceeds, Glaser alleges Taylor paid her own relatives exorbitant fees for non-existent services — all of which he says the state court is ignoring or moving too slowly to address.
Glaser’s action comes after the matter had already been referred to the Kings County District Attorney’s Office, whose probe found no evidence of criminal action. The District Attorney did refer Taylor to the Bar Association’s Disciplinary Committee, which hasn’t yet taken any action.
Glaser’s bid for a hearing in federal court comes after a failed attempt to get the case transferred to another jurisdiction for investigation. After alleging a conflict of interest on the part of the Brooklyn District Attorney’s Office — an employee of which originally commenced the guardianship action against Phillips’ back in 2001 — Glaser’s request for an investigation by another jurisdiction was refused by the presiding judge, state Supreme Court Justice Michael Pesce.
Though he stated he did not have the authority to order an investigation by another jurisdiction, Pesce has ordered hearings into the alleged misappropriation of estate funds, scheduling a series of hearings beginning next week and running until early November.
The hearings will examine charges by the current property guardian, James Cahill Jr., that Taylor made disbursements without court approval, as well as allegations she overpaid herself legal fees for which she failed to provide supporting documentation.
He Said, She SaidTaylor maintains she did nothing wrong, asserting she had “court approval” to “pay people when necessary.” She points to the minutes of a hearing in 2005 during which Pesce tells her he expects her to pay those who have performed services for Phillips, but not before submitting an order for the court’s approval.
According to a “final accounting” of her tenure as property guardian prepared by the court examiner in the case, attorney Seth Cohen, Taylor paid herself just over $750,000 without court approval.
In addition to his claim that the amount she paid herself is exorbitant and without merit, Glaser’s claims also include the allegation that Taylor misappropriated funds from the sale, at unpublished auctions, of properties belonging to Phillips’ estate.
Taylor’s admitted failure to file any income taxes on behalf of Phillips — which the state’s mental hygiene statute requires of a property guardian — is also a claim for which Glaser plans to seek redress. Though she admits not filing taxes, Taylor told the Eagle outside the courtroom on Wednesday that her status as interim guardian exempted her from that requirement.
In the U.S. Code §1983 action, Glaser will allege Taylor failed in her fiduciary duties to protect Phillips’ rights as a ward of the guardianship court. He also expects to ask for monetary damages equal to the amount he alleges Taylor misappropriated — as well as any interest and penalties Phillips’ estate may accrue as a result of her failure to fulfill her fiduciary responsibilities.
After recently paying $362,438 in back taxes to the federal government, current guardian Cahill announced on Wednesday a remaining tax liability of in the amount of $1,424,325.
The real estate holdings currently in Phillips’ estate may have to be sold, Cahill said, including the iconic Slave Theater in Bedford-Stuyvesant, in order to satisfy the outstanding tax liability.
File SealedAlso on Wednesday, Glaser tried unsuccessfully to petition Pesce to open the Phillips case file, which was ordered sealed by the previous judge, state Supreme Court Justice Leonard Scholnick, back in 2001. Pesce had ruled on earlier occasions that the case file should remain sealed from view to “protect” Phillips.
“There were occasions and intervals that people appeared at the [Phillips] residence to have Mr. Phillips sign documents,” Pesce said on Wednesday, “So I ordered the file sealed to protect Mr. Phillips.” “Only court-appointed guardians can sign legally binding documents on Phillips’ behalf,” Glaser countered, arguing that as an incapacitated person, Phillips’ signature on official documents was meaningless.
“The files also have medical information” about Phillips that Pesce said he wanted to keep under wraps, citing federal legislation requirements.
“There have been allegations about the motives of this court as to why this court has sealed the file,” Pesce continued, without elaborating on what allegations he was referring to. “Therefore the file will remain sealed.”
After the brief argument, Pesce adjourned the proceedings until Oct. 9, when the issue of whether to void the sale one of Phillips’ holdings — a townhouse at 68 Herkimer St. in Bedford-Stuyvesant — and order it returned to Phillips’ estate will be taken up for consideration.
Pesce also set a schedule for hearings into the accounting of Taylor’s tenure as property guardian — an accounting that revealed disbursements to herself in an amount in excess of $750,000, most of which she claimed at the time was for legal fees and expenses incurred while caring for Phillips.
Because of her failure to submit supporting documentation justifying the payouts, Pesce ordered Taylor her to create such documents from memory to the best of her ability. Taylor claimed the original supporting documentation was destroyed in a flood at her Bedford-Stuyvesant townhouse, mortgage payments for which were also found to have been paid using money from Phillips’ bank accounts, according to cancelled checks submitted to the court by Cahill.
These and other issues relating to Taylor’s expenditures will be examined at a series of hearings, the first of which is scheduled for Oct. 4. Subsequent hearings are scheduled for Oct. 9, 15, 30 and November 1.
Pesce has already held Taylor in contempt of court for writing herself a series of checks totaling $187,000 from Phillips’ bank accounts without the court’s permission. After ignoring Pesce’s order to return the money, Pesce issued the contempt order, fined Taylor $250 (plus any penalties or interest associated with her failure to fulfill her fiduciary duties as Phillips’ property guardian) and referred the matter to the Brooklyn District Attorney for possible criminal action.
The accounting that allegedly reveals the extent of Taylor’s misappropriation of Phillips’ funds was filed and prepared by the court examiner, attorney Seth Cohen, whose regular job in the Phillips case had been to oversee, pre-approve and endorse accountings that are supposed to be prepared and filed by property guardians.
Pesce also stated on Wednesday that the issue of yet another of Phillips’ former property guardians, attorney Ray Jones, would be taken up. Jones is also charged with failing to file an acceptable and complete accounting of his tenure as property guardian in the two years prior to Taylor’s tenure, and will be back in court on Oct. 9.
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