NEW YORK – In a satisfying conclusion to a bold scheme, former Guilderland Town Justice Richard J. Sherwood and financial advisor Thomas K. Lagan have been forced to return nearly $6.3 million. The pair were convicted in 2019 after a scandalous plot to steal vast sums of money intended for charities across the Capital Region.
Disgraced Attorney and Financial Advisor Forced to Return $6.3 Million After Defrauding Elderly Sisters and Charities.
Betrayal of Trust
Sherwood and Lagan ruthlessly exploited their trusted positions as advisors to the philanthropic Bruggeman sisters of Niskayuna, New York. The sisters' wills directed their assets to benefit local churches, hospitals, civic organizations, and a university scholarship fund. Instead, Sherwood and Lagan manipulated the sisters' estates, diverting the funds for their gain.
“These men violated the sacred trust bestowed upon them, not only defrauding a caring family but also cheating worthy charities out of significant support," said Attorney General Letitia James. "This kind of abuse will not be tolerated in New York. We'll continue to work diligently to make victims whole and hold those who exploit our communities accountable."
Justice Prevails, But Work Continues
Thanks to the efforts of the New York Attorney General's Office and the U.S. Attorney for the Northern District of New York, charities like St. Nicholas Ukrainian Catholic Church, the Ukrainian-American Cultural Center, Inc., Ellis Hospital Foundation, Inc., and the Bruggeman ’46 Scholarship Fund at Rensselaer Polytechnic Institute will finally receive portions of the long-overdue money.
U.S. Attorney Carla B. Freedman emphasizes that the fight is not over: “We will relentlessly pursue all avenues to ensure as much restitution money as possible reaches the victims of this outrageous fraud."
The Investigation
The New York State Police Special Investigations Unit, the U.S. Attorney’s Office for the Northern District of New York, the Federal Bureau of Investigations, and the New York State Office of Taxation and Finance all played pivotal roles in uncovering the complex scheme.
