Dishonest Financial Evaluators in NY Divorce
One of the pitfalls of contested divorce in New York is financial evaluators. Financial Evaluators, sometimes called forensic accountants, are an unregulated piece of the Divorce Industry of New York that exists primarily by handouts of court ordered fees by elected judges. Very few people would call in an accountant that makes their living hanging out in the courthouse and influencing judicial appointments so these low lifes sit and wait for hand outs from their Judge friends.
One of the dishonest ones that I came across, and I'm sure many other have been smitten with, was Gerald DeFeo of White Plains. I remember when Gerald was appointed in court. A financial evaluator was going to be needed so the lawyers suggested their good friend Gerald DeFeo and the Judge who also had a longstanding friendship with DeFeo agreed instantly. Within thirty seconds I was ordered to pay Mr. DeFeo $7,000 to do a cursory evaluation.
Hours after the appointment Mr. DeFeo raced to his fax machine to send over his demands and notify us that for $7,000 he'd take a cursory look at our records and issue a one page letter report, delivered verbally to the lawyers in the case only. Mr. DeFeo was effectively charging about $250 and hour and the Divorce Attorney slugs were charging about $350 an hour. So after forcibly paying $7,000 to Mr. DeFeo I was going to have pay about $1,500 in legal fees for the private screening of Mr. DeFeo's one page summary report but it was clear the court-ordered fee wasn't getting any type of forensic financial evaluation whatsoever.
Mr. DeFeo's work was innane and unsophisticated. He did some very cursory analysis of my business and rather than doing any real analysis he looked a proposed acquisition that never materialized, and had a 30 day fixed expiraiton date, and assigned the value of the business based on the fishing expedition of a competitor. Though it was easy to argue that Mr. DeFeo had exploited the court order for his appearance by charging unduly large fees for doing virtually no work at all, and certainly never presenting an accounting of how he consumed $7,000 in a one page, three paragraph letter, but it was difficult to argue that there was a seemingly valid purchase offer for the business and the business was healthy at the time. Mr. DeFeo informed us that if we wanted the full report, it would cost $25,000 paid in full up front and then he would trouble himself to do a complete analysis. However, lacking the $25,000 and feeling the full onslaught of the Divorce Industry ripoff on many fronts I demurred from further ripoff from DeFeo.
Gerry DeFeo hinted that he was a dishonest money grabber sitting around lazily for court ordered handouts, but when a trial commenced 2 years later Mr. DeFeo showed his true colors as a complete money hungry charlatan. While Mr. DeFeo had been hired as a 'Court Ordered Neutral' and a supposed expert in forensic accounting, Mr. DeFeo is able to instantly sell his services to the highest bidder once the court ordered report is done. Therefore, my ex, who was funded with off the books money, paid Mr. DeFeo a retainer to show up at trial and DeFeo and his old friend, my Ex's lawyer, and the Judge had a ball with me in trial as I struggled Pro Se.
Mr. DeFeo stood in the witness chair smirking and openly laughing at my attempts to ask him questions. He wouldn't admit that a small business that sees its revenue decline by over 70% to a point where it was no longer viable had lost value, there simply wasn't evidence of that. He wouldn't admit that the conditions of a business could change in 2 years and that cursory one page valuation of 2007 wouldn't be valid in 2009. Mr. DeFeo shed any inkling of neutrality and instead showed his true colors as a money-grabbing, dishonest cog in the grossly corrupt New York Divorce Industry.
All told Mr. DeFeo fleeced my family of over $20,000 to deliver the weakest forensic report imaginable and lie on the witness stand under oath. If there is any integrity to court-appointed-neutrality it is in a joke in the urinal in the Westchester County Supreme Court House, but certainly doesnt' exist in Mr. DeFeo or in the divorce industry. While Mr. DeFeo was happy to exploit his neutrality and turn his court appointment into a biased fee grab, he is only playing by the broken rules that New York State has established for the NY State Divorce Industry. Mr. DeFeo has no professional integrity but he's only exploiting a broken system
So If you come across Mr. DeFeo in courtappointed assignement be prepared to be fleeced, but if you can avoid creeps like DeFeo, you should do so at all costs. Save yourself the fleecing and go out an hire any accountant that will do the same job, only better, usually at a fraction of the costs.
Avoid the ripoff!
Poor Divorce, Rich Divorce – Social Inequities
If there is any doubt that the New York Divorce Industry rips off tax payers the doubt should be settled when looking at the dual-track contested divorce system for rich and poor. The Divorce Industry has set up the perfect system where poor New Yorkers who can't pay their fees are denied access to the Supreme Court System and sent to tax payer funded agencies. In the meantime, those who have assets to pilfer, the targets of the Divorce Industry, are stuck in the corrupt Supreme Court System of New York.
The Supreme Court System of New York supports the Divorce Industry by doling out lucrative and poorly supervised court-ordered services with outrageous costs that litigants are forced to pay. The Supreme Court System acts as the employment agency for the Divorce Industry and those who can't afford the fees of the Industry suffer tremendously. Meanwhile, the tax payers of New York are left to pick up the tab in local Police services, Family Court and Child Protective Services for poor families who can't afford access to the Supreme Court.
The source of these inequities stem from the New York Constitution. The Family Court has the same powers as the Supreme Court so long as the Supreme Court doesn't want to deal with a case as shown in the NY Constitution. This sets up the fraud because one system is primarily at the tax payers expense, Family Court, and the other is at both the tax payer and the litigants expense, the Supreme Court. Here's the quote from the constitution:
13.c. The family court shall also have jurisdiction to determine, with the same powers possessed by the supreme court, the following matters when referred to the family court from the supreme court: habeas corpus proceedings for the determination of the custody of minors; and in actions and proceedings for marital separation, divorce, annulment of marriage and dissolution of marriage, applications to fix temporary or permanent support and custody, or applications to enforce judgments and orders of support and of custody, or applications to modify judgments and orders of support and of custody which may be granted only upon the showing to the family court that there has been a subsequent change of circumstances and that modification is required.
If a divorcing couple can't come to an amicable agreement and doesn't have $20,000 in combined attorney retainer fees they can't access the Supreme Court System. If they go it alone as pro se they will face certain failure in an insiders game bereft of supervision of day-to-day operations, devoid of due process and free of outside monitoring by the US or NY State authorities. There are no free legal services to navigate Supreme Court so the only option is to wait until a bad situation gets so bad that you go to family court. Even if there were free legal services for access to the Supreme Court lawyers are only part of the Divorce Industry and there is no free access to custody or financial evaluators in Supreme Court. So with no way to gain access to the Supreme Court couples must duke it out with the Police, Child Protective Services, Family Court and some litigant paid services.
Why are the elected Judges of the Supreme Court serving as employment agents for the Divorce Industry? Why do tax payers pay for court rooms and staff to house the Supreme Court when it is helping a private industry bill out over a billion in fees a year? Shouldn't the industry be paying for some of the costs of the system since the Divorce Industry players are the primary beneficiaries of the current system? Why are tax payers the sole funders of the attorney and judicial discipline for the Supreme Court? NY is the last state besides CT that doesn't make bar associations pay some portion of attorney discipline, why are the tax payers footing the bill for this billion dollar industry? Why do pro se lose so much in Supreme Court without the protections of due process? Why are the poor forced to over-taxed and under-funded agencies while the State of New York will foot the bill for days of senseless trials in Supreme Court that defy common sense and only benefit the Divorce Industry? With so many court funding problems why is NY giving so much to the Divorce Industry and in the meantime harming countless families and innocent children with gross violations of civil rights?
Perhaps the biggest question is why do we all say that's just the way it is?
Its time for a change but the first step is serious scrutiny of this unconstitutional system. Where is Preet Bharara? NY Can't get the job done cleaning up this Industry, we need outsiders to fix this mess.
The Joy of Child Support Arrears in New York
Like many I saw my financial world deteriorate in late 2008 and continue its decline in 2009. Thankfully things took a turn for the better in 2010 and I'm digging out but the sting of child support arrears will linger for many years and seriously impact my life. Child support arrears reported to New York State result in a 65% wage garnishment, sight unseen, no facts accepted. All it takes is a short form filing and the garnishment comes until arrears are paid off. As New York takes your drivers license (I was able to avert this), passport renewals (couldn't stop) and sends frequent correspondence to you and your employer they also take a big crap on your credit report. Since having this on my credit I have been denied in every credit request. It's a black mark with serious implications that I must explain private matters to my employer, strangers at car dealers and others.
Of course the remedy is to pay down the arrears but in many cases this is simply impossible to do in a timely fashion. Especially under the punishment of a garnishment that doesn't meet the current obligation.
New York needs to understand that a lot of us with arrears have economic problems due to no fault of our own. We dont quit and hide, we find work. We couldn't maintain payments without income or with diminished income but when we return to work our success is punished. New York punishes parents who are honest and employed, trying to pay their responsibilities as best they can. If a wage garnishment of 65% isn't meeting the obligation why continue punishing hard working honest citizens? Many avoid child support and do all they can to hide income and evade responsibility but this isn't the case with me or many like me. Why are we judged in the same light as evaders when we are merely victims of a broken and corrupt system. This is government abuse of power and harassment of innocent citizens and it must be curbed.
The Friedlander Tragedy MUST be a Catalyst for NY Divorce Reform
As horrific as the Friedlander deaths were it is equally horrific that New York State is not reviewing the circumstances that led an ordinary man to such extraordinary actions. This family was suffering through the worst of the divorce industry. One of the attorneys is known as one of the biggest fee mongers in Westchester and no doubt they were under incredible financial duress from ridiculous bills. Broken New York laws kept the couple battling over the house long after custody was settled and no doubt such punishing bills made it impossible to move out. Surely the passive legal guardians that do nothing but bill were long since done with the children and with no social workers involved on the case there was no one to catch warning signs. Undoubtedly their case dragged on for over a year as the Judge ordered crazy bills and had no sense of urgency in his dealings, pushing the billing mill for his lawyer friends. Surely the parents were feuding stuck in the same house and both the lawyers and the court system did nothing to calm the situation but send more bills, adjourn more court dates and delay decisions.
We need a NY State or Federal commission to examine the circumstances that put the kids on such a dangerous situation. We need a 'Friedlander Law' that forces judges to make expedient rulings in contested divorces. The law needs to assign state funded social workers to contested cases and they need to have regular evaluations of the stress in a divorce. The law needs to limit divorce lawyer billing beyond 20% of net worth so piggish divorce lawyers can't show up to a house closing to take all the proceeds from a families sole asset. We need to abolish the practice of courts serving as employment agencies for divorce lawyers as unqualified legal guardians. NY forces families to pay 250 per hour or more for law guardians that are wholly unqualified to deal with the psychological issues of children in divorce. Lawyers have no training to deal with emotional issues in divorce yet in the backwards NY Divorce laws they are to be the emotional voice of children in divorce. The end result is tragedies as terrible as Friedlander and many more that aren't as horrid.
These children should not die in vain and NY state can't look the other way on the sorry state of the divorce industry.
It's time for change!
NY Divorce Courts Operate in the Stone Age of the Legal Industry – Court Reporters
One of the limiting factors in appeal is the ridiculous cost of court transcripts in New York Divorce Courts. After the sorry excuse of a court room that is New York Supreme Court Matrimony Part where due process is randomly ignored or followed, but generally pissed on, comes the archaic Appeals Court of New York. The Appeals Court is an intimidating place where you are arguing your measly divorce issues alongside Citibank, Goldman and other mega-clients. Whether you are challenging serious legal issues or being pillaged by divorce attorneys the same requirements apply - 9 PRINTED copies of the ENTIRE case record, which is WAY more than a transcript. Simply copying the complete case record 9 times can cost thousands of dollars and rest assured, no one probably reads it in its entirety, but the burden is on the one filing the appeal to produce the monstrosity.
The first step is to get the court transcript, however, and after seeing this dinosaur system it would be laughable, if it wasn't so damaging to families. Court reporters in NY are amongst the last in the nation to do things the old fashioned way with mysterious typing boxes that then must be transcribed into readable pages. My request to the court reporter for transcripts came back with a cost of $6 per page, and there were about 500 pages to transcribe, so about $3,000. I have sent only $500 to the court reporter back in March but now in October as the appeal window has closed, I still don't have one single page of transcript nor do I have my five hundred bucks. The chick took the money and did absolutely nothing, zippo nada. She moaned that she needs more money but grudgingly agreed to do the first day of my 'trial' play acting.
Even though I have run out of time for the appeal, largely due to this idiot court reporter not responding and charging exorbitant fees, I am demanding that she deliver at least one day of the trial or send the money back. Believe it or not, after sitting on her ass and doing nothing for 7 months, SHE STILL NEEDS TWO MORE WEEKS to type about 30 pages.
I'm sure if I had an attorney ask it would've been different but this is one case where I can't wait for automation to put her out of work. There is no reason that NY families and children should be paying for antiquated courtroom procedures when virtually every state in the US has done away with these arcane beasts. Imagine losing your kids and all your assets and then being trapped in an appeal processor waiting for this old maid to get out the selectric and bang out a few pages.
Un f'ing believable but welcome to NY Divorce!
My visit to CAMP to appeal divorce
So finally has a CAMP conference for my divorce appeal. My assertion that the divorce industry is a sleazy government backed insiders con game is only reinforced. The lawyer who lied to the Judge repeatedly and violated numerous ethical standards and constitutional law was greeted warm hearted by the friendly mediator, a retired judge. Of course the two were old buddies so I could see where this was heading from the outset.
So it didn't take long for the distinguished retired judge to remind me who he's working for as he calmly instructed me that the minimum cost of my appeal was going to be $50,000 in legal fees. This was the number he'd decided I guess. So then I ask thr distinguished judge why a lawyer who lied,broke rules of ethics and violated laws should be rewarded by me, the clear victim. Why shouldn't the court take responsibility of fair courts. He laughed.
Appeal Window Shuts – The Divorce Industry Check Mate
Tomorrow shuts the appeal window for me. After being financially ruined by the unscrupulous Divorce Industry appeal has been taken off the table as an option because I, the victim, have the sole responsibility for enforcing fair courts and due process. I can't afford a transcript, I can't afford the case record, I can't afford a lawyer and CAMP excludes pro se. Appeal is done, check mate.
Pro Se cases in the kangaroo courts of New York Supreme Court system NEED SUPERVISION! The system has an obligation to be fair to litigants, to follow due process and to follow the published rules of the court. When it all goes wrong and the Judge ignores due process and simply makes things us as he goes along, when the attorney lies and behaves unethically with proof, the system needs to step in and fix these situations without placing the burden on the victim of the system.
Now the victim must pay for all the aforementioned while the unscrupulous attorney on the other side will be rewarded with more court fees when they should be forced to cover the costs of the problems the create for New York taxpayers by clogging the system with garbage cases not to mention to the damage that they cause.
This is what we get with no proactive enforcement of fair courts in New York and it's a travesty of democracy and an insult to the US Constitution. Where are our civil rights to due process in New York? Why are we cut off from the courts after we've lost everything by corrupt courts?
A Victim Fights Back In a Game With No Winners
The Divorce Industry of New York destroys more lives than can be counted, though hopefully civil rights challenges will one day count the victims. The victims of the New York Divorce Industry have no recourse, no voice and no civil rights protections because they are generally people who have no voice in the civil rights debates and ZERO attention for civil rights reformers - they are middle class parents and children. Children generally can't advocate for themselves and the middle class is completely ignored in civil rights discussions and Legal Aide. In any case, here is an example of a victim fighting back. While it's a 'victory' it's a bittersweet victory in a game with no winners.
This victim was violently ripped from a parent with police force during divorce. The 'court-appointed neutral expert' was none-of-the-above, a hack psychologist that had long abandoned neutrality in favor of supporting the monied party. Unsurprisingly the court-appointed-neutral supported the highly paid party and declared the poor parent a danger, though the parent was a stay at home primary caregiver by day. This victim was banned by the court from speaking, texting or seeing the parent in a kangaroo court that typifies the fraudulent Divorce Industry. One side spent hundreds of thousands of dollars of undeclared money while the other struggled pro se in a 2 week 'trial' that ended in complete removal of the parent from the child's life.
Well finally, after the victim has had to suffer the loss of childhood in the hands of the corrupt Divorce Industry, the victim took matters into their own hands, though sadly, months before emancipation. It took the victim persisting for many years and taking dramatic actions to see their loving parent. Undoing a ruling of the ever-powerful elected officials of the New York Supreme Court is near impossible and though the victim is unable to undo the ruling, tenacity of the this child is astounding. This child literally was ripped by police away from a parent in support of unconstitutional Supreme Court orders, threatened with punishments that would scare the hell out of any child or adult and endured years of mental torture that New York imposed simply because the Divorce Industry's hunger for money supersedes all in New York Divorce.
Nothing can change the past or the harm that New York allows the Divorce Industry to inflict in its boundless greed but seeing a victim fight the system is further example that New York State needs to end the protections of the Divorce Industry. Pro Se must NEVER lose children simply because they couldn't afford a lawyer while the other party spends freely from undeclared assets. There must be harsh penalties for blatant liars. New York must stop protecting divorce lawyers who hide behind a thin veil of professionalism and choose to lie and help their clients lie with the sole goal of enrichment of the Divorce Industry.
We must stop mixing up the politics and religion of divorce with the good old fashioned greed and corruption that is pervasive in the Divorce Industry. Corruption is corruption and it's context is irrelevant. Nobody defends that dishonest contractors shouldn't be punished because they are advocating some type of religious debasement, we punish dishonest contractors for dishonesty. Same should go for the Divorce Industry of New York. It's all about the money, it aint about divorce and it's time to wake up and smell the coffee and attack this corrupt industry that destroys people and defiles the US Constitution and the very essence of being American.
Admission – No hope for divorce reform in New York
So after years of this blog and numerous other activities designed around seeing real changes in contested NY Divorce Law I am basically calling it quits. I think that NY divorce could be changed easily with ethics enforcement of attorneys, accountability for lies in statement of net worth and basic civil rights protections to guarantee due process for pro se litigants, however, there's just way too much money for anyone to really give a shit. So long as NY Divorces are heard in courts staffed by elected officials with no effective supervisory bodies the situation will stand forever.
The NY Legislature is hopeless in their efforts to change NY Divorce as shown in the NY Divorce Reform Law that created more problems than it solved by adding spousal maintenance for life and stronger protection for lawyers to get paid. With billions in the NY Divorce industry and Supreme Court Judge positions gifted to loyalists there is no hope that a Judge in Supreme Court in NY will ever make an unbiased decision that is in the interest of children or logic. Children and logic didn't get a Judge elected and it won't get him or her a good job when they're done with the job.
The Attorney Grievance Committee, 2nd part, 9th District is asleep at the wheel and is a complete waste of tax payer money. In 2009 after spending nearly 50million they prosecuted about 64 lawyers out of 14,000 they supervise and over 2000 complaints. The majority of complaints go directly into the garbage bin and of the few they keep around they have no investigative standards and they operate in secrecy. Unless your lawyer steals your retainer and never works, steals your escrow money or commits a regular felony he or she is statistically guaranteed to never face a disciplinary hearing for anything they do. With less than .05% of attorneys disciplined in a year the efforts of the grievance committee are simply a rounding error. Attorney discipline is non-existent in NY.
Judicial ethics enforcement is even worse since we have no idea how lame they are - they don't publish statistics on what they do. And again, unless a Judge commits a blatant felony there is no chance that they will ever be called to task for ethical behavior. Even if they are called in the proceedings are secret and the punishments opaque.
So in a system awash with money and bereft of any standards and enforcement of professional ethical behavior you can imagine what ensues. You could replace the word Divorce in Divorce Industry with any professional trade and with the same recipe - unlimited billings with cut-throat court punishments to enforce the fees and zero professional supervision will lead to fraud. Unfortunately, fraud is human nature when there's large sums of money at play.
My closing advice is to those who are getting divorced from an unreasonable person in NY is don't do it. If you are married to an unreasonable person who will force you to court and you have children divorce will change nothing. The old axiom 'it's cheaper to keep her' is 100% true. The worst day in a miserable non-violent marriage is better than the best day in Supreme Court in divorce and that day in court will cost your family a minimum of $10,000 a day and a life time of agony for your family. If you are stuck in the process I feel for you but you are truly fucked. No one cares about what is happening to you in the system, the system will steal everything it can from you and could even remove your kids. You have my sympathy but that's all you're getting. New York State is down with divorce lawyers and has given them a license to steal, don't expect anything less, the attorney's know you are alone and they are untouchable in New York.
Best of luck to you all.
Is there freedom in divorce?
The Jewish holiday Passover begins in a few days and a central theme of the holiday is freedom. The irony of my divorce is that while I divorced for freedom I have never been more oppressed in my life than in divorce. Facing the mess that the crooked New York State Supreme Court system has left behind in my life has virtually enslaved me to NY State Child Support Collection. The penalties, endless harassment, strong-arm tactics and embarrassment of being publicly labeled as a deadbeat for money that I could never possibly afford to pay begs the question; Where are the protections of US Constitution in New York civil courts?
I took some time this weekend to calculate how long it will take to pay my current child support and maintenance and arrears on a 65% wage garnishment. I accrued arrears because I was unemployed and could not afford a lawyer to assist with a modification of my child support and the court was not at all interested in my story. When I finally found a job I had fallen $60k behind in payments.
Before I show the figures I want anyone who is contemplating divorce to think about this. After taxes and garnishment I am now left to live on 14% of my wages. This could happen to you in New York, easily. So it will take me 10 years paying $84,000 a year in wage garnishment to pay current support and maintenance and arrears. My opening arrears balance was $60,000 but since my 65% garnishment doesn't cover the current child support award, let alone arrears, my balance will accrue to over $127,000 with New York Child Support Collections before it begins to reduce. I'm sure that the good people over there will be overjoyed to hear my story that I don't have the money as they continue their endless barrage of letters to credit agencies, banks, employers, past employers, 1099 payers, etc.
The answer to the question that began this article is clearly NO. At least in my case there is no freedom in divorce. While I have no regular contact with the ex we still share children. I am living on $3,000 a month and need assistance from friends and family for most everything financially and will for at least 10 years. In the New York City suburbs $3,000 a month is not an appreciable sum.
I don't know why New York has the power to force pro se into trials where the penalties are so harsh. I don't know why no one cares that people who can't afford attorneys will lose everything in corrupt New York Supreme Courts filled with Judges who will sit idly by while a pro se loses his children or all his possessions and future earnings with no protections of due process or legal representation.
New York has an obligation to respect the US Constitution and Andrew Cuomo and the rest of the legislature could care less about the abuses that ordinary people suffer in the corrupt New York Supreme courts. Anyone who speaks up is some kind of nut upset about his child support, anyone who questions the ethics of attorneys and judges is ignored by ineffectual discipline committees. We are shoved back into the same convoluted, corrupt court systems that we couldn't afford in the first place that are only more expensive and convoluted as we fail in the impossible appeals process. The Civil Appeals Management Program of New York won't even meet with a pro se as they would if an attorney was involved making appeal even more impossible for pro se.
This year at my Seder for the first time I will truly be asking the question 'am I free?'.