"ANOTHER LAWYER COMMITS CRIMES"

 March 06, 2004
Lawyer Confesses to Fraud

   By Heather Yakin
   
   Monticello – In an apparent fit of conscience, a respected lawyer confessed Thursday afternoon at the district attorney's office to defrauding clients of more than $400,000.
 

   Michael S. McGrady, 62, of Hankins, was apparently funneling the money out of an escrow account and using it to support a private religious and recovery organization known as the East Ridge Community, state police said.
 

   McGrady has been the group's lawyer for years, and has also served as a municipal attorney for some local towns and school districts.
 

   According to state police, McGrady siphoned the money from his law practice escrow account and into East Ridge coffers. The money came from at least 27 clients of McGrady's law practice, mostly from local clients. Some of the victims were private citizens; others, small businesses. The incidents happened over the past two years, police said.
 

   The Sullivan County District Attorney's Office hadn't received any complaints about McGrady's business practices before he walked in the door to unburden himself, accompanied by his lawyer.
 

   After his confession, state police and the district attorney's office charged him with second-degree grand larceny, a felony that carries a maximum penalty of 5 to 15 years in prison.
 

   Walter Garigliano of Monticello, whose law office is representing McGrady, did not return two calls yesterday for comment.
 

   The outgoing message on the answering machine at McGrady's law office in Callicoon stated that the office was closed for the day. By press deadline, McGrady hadn't returned a message left on the machine.
 

   News of McGrady's arrest sent ripples of disbelief through the county yesterday, and people described him as a very pleasant, likable man who always wore a suit.
 

   Records in the Sullivan County clerk's office indicate that McGrady was the chief financial officer for some East Ridge Community business ventures, and that he was a trustee for the parent company, The Queen's Work Inc. He also acted as the group's attorney in many matters, including in dealings with the New York Department of State, which regulates corporations.
 

   McGrady was arraigned in Liberty Village Court and freed on $25,000 bail, pending his next court appearance.
 

   Police are investigating to see if there are more victims.

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