Lawyerly Lairs: A Disbarred Lawyer's $11 Million Beach House

The house is up for sale -- so the disgraced plaintiffs' lawyer can repay the clients he defrauded.

handcuff handcuffs businessman crime white collar criminalYes, the new Biglaw going rate of $180,000 is a nice starting salary for someone just out of law school. And it can buy you some lovely real estate (especially if you live in Dallas or Charlotte rather than New York or San Francisco).

But let’s face it: $180K doesn’t make you rich. As Elie Mystal wrote almost six years ago (so it’s even more true today, given inflation), “Earning $250,000 does not make you rich, not in my town.”

What qualifies a person as “rich” in 2016? You need a net worth well into the eight figures, I’d say. For example, to be considered an “ultra high-net-worth individual,” you need a net worth of at least $30 million.

If you want a solidly upper-middle-class lifestyle, then Biglaw is fine. But if you want to become rich through the practice of law, Biglaw probably isn’t your best bet. Instead, think about becoming a plaintiffs’ lawyer. It’s not an easy way to make a buck, but the higher risk brings higher (potential) reward. Recall, for example, the late Joe Jamail, who became a billionaire through representing plaintiffs on a contingency basis.

Just don’t become the stereotype of the ethically challenged plaintiffs’ lawyer — which brings us to today’s sad tale. Last month, the New York Times reported:

Stuart A. Schlesinger spent half a century building a reputation and a practice as a personal injury lawyer in New York, representing clients in lawsuits and negotiating settlements on their behalf. But when he appeared recently before a federal judge in Manhattan, he found himself in an unfamiliar position for a lawyer: He was the defendant.

Mr. Schlesinger, 76, had been arrested on a fraud charge in one of the more brazen schemes in the annals of New York law: He settled lawsuits on behalf of clients, sometimes for $1 million or more, and then simply kept much of the money for himself.

Schlesinger recently pleaded guilty to federal fraud charges, estimating that he stole about $5 million from his clients. He has also been disbarred.

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To repay his former clients, Schlesinger is giving up some assets. Per the Times:

One asset he has agreed to forfeit is an eight-bedroom house on five and a half acres in Quogue, on Long Island, which is listed for sale at $11.5 million and is advertised as having a pool and a hot tub overlooking the ocean.

Based on Long Island property records, the house in question appears to be 186 Dune Road. As you can see from the Douglas Elliman listing, the house has eight bedrooms, a pool, and a hot tub (although less acreage than the Times claims). It looks like it has been marked down in price since the Times article came out; it’s now for sale for $10.5 million.

There’s no disputing that it’s an impressive home (click to enlarge):

186 Dune Road 1

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Let’s explore a bit, shall we?