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STATE OF NEW YORK COMMISSION ON JUDICIAL CONDUCT

In the Matter of the Investigation of Complaints Pursuant to Section 44, subdivisions l and 21

of the Judiciary Law in Refation to

RICHARD J. SHERWOOD,

a Justice of the Guilderland Town Court, Albany County.

STIPULATION

THE FOLLOWING IS HEREBY STIPULATED by and between Robert H.

Tembcckjian, Administrator and Counsel to the Commission, and the Honorable Richard

J. Sherwood and his attorney, William J. Dreyer. of Dreyer Boyajian, LLP.

I. Richard J. Sherwood was admitted to the practice of law in New York in

1988. He has been a Justice of the Guilderland Town Court, Albany County, since

January 2014, His current temi expires on December 31, 202 l.

2. Judge Sherwood was apprised by the Commission in March 2018 that it was

.. investigating a complaint alleging that by felony complaint dated February 23, 20 l 8, the

judge was charged with two counts of Grand Larceny in the First Degree, one count of

Scheme to Defraud in the First Degree. and two counts of Criminal Possession of Stolen

Property in the First Degree. A copy of the felony complaint is attached as Exhibit l.

The charges were pending as of the date of this Stipulation.

3. Judge Sherwood tendered his resignation by letter to the Guilderland Town

II I•· Supervisor dated March 5, 2018, a copy of which is annexed as Exhft,it {. Judge

Sherwood affirms that he vacated judicial office as of that date. His attorney notified the ! I

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Court of Appeals. the Office of Court Administration and the Commission ofthe

resignation.

4. Pursuant to Section 47 of the Judiciary Law, the Commission has 120 days

from the date of a judge's resignation to complete proceedings, and ifit so detennines.

render and file a determination that the judge should be removed from office. 1

5. Judge Sherwood affirms that, having vacated his judicial office, he wm

• neither seek nor accept judicial office at any time in the future.

6. Judge Sherwood understands that, should he abrogate the terms of this

·. Stipulation and hold any judicial position at any time in the future, the Commission's

investigation of the complaint would be revived.

7. Upon execution ofthis Stipulation by the signatories below. this Stipulation

will be presented to the Commission with the joint recommendation that the matter be

• concluded, by the terms of this Stipulation, without further proceedings.

8. Judge Sherwood waives confidentiality as provided by Section 45 of the

Judiciary Law, to the extent that (A) this Stipulation will become public upon being

signed by the signatories below, and (B) the Commission's Decision and Order regarding

this Stipulation will become public.

1 Pursuant to Section 47, the 120 days commences from the date the resignation is received by the Chief Administrator of the Courts.

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Dated: 3, / ">1 /t f'

Dated:

William J. Dreyer,, sq. Dreyer Boyaji~ LLP . Attorney for Judge Sherwood

Robert H. Tembeckjian Administrator .and Counsel to the Commission (C.fllleen :s. Cenci, Of Counsel)

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April 3, 2018

CITY COURT CITY Of ALBANY COUNTY Of ALBANY STATEOFNEWYOR.K

nm PEOPtE OF nm STATE OF NEW YORK

-apinst­

RJCHARD SHER.WOOD and THOMAS LAG.AN1

Defendants.

BE IT KNOWN nJA T, by this Complaiut. lnveltigator Mark Spence~. as the

COJnplainam her~ a police officer with t1m Office of the New York State Attorney General.

Albany, New York, accuses the defendants. RICHARD SHERWOOD and THOMAS LAGAN,

W!tb having committed. the following mmes: Owld L8l'ceny in die First Degree in violation of

P.L. § 155.42. a class B Felony (two rooo.ts); Scheme to Defraud in tire Pim Degree in violation

of P.L. § 190.65(1 )(b). a class E Felony; and Criminal Possessjon of Stolen Property in the First

Degree in violation of P.L. § l65.S4, a class B Felony (SHERWOOD - two oourus; LAGAN -

two counts).

COONIPNE. 'The defendants, RICHARD SHERWOOD and 'IHOMAS LAGAN, committed the crime

of GRAND LARCENY IN THE FlltST DEGREE. in violation of Paw Law§ 155.42. a class B

felony. on or about February 20, 2013 through J.mwuy 2, 2015, in the City of Albany. County of

Albany, State of New York, and elsewhere, whoo they stole property. and the value of the

property exceeded one million dollars (Sl.000"000), to wit. the defendants int.entionally and

wrongfully rook. obtained, or withheld money from the Pauline U. Bruggeman Revocable Trust

("PBRTj in an amount in excess of one million dollm ($1,000,000) by fiiling to return the

money to the PBRT. That money was being held in trust in the Anne 8. Urban Irrevocable Trust

("AUJTj account for the benefit of Acme S. Urban's health. education, mainteoon.ce, and

support duriog her lifetime. After the death of Anne S .. Uman any remaining money was to be

returned !O the PBRT and distributed to six named charities in established percentages as part of

COUNIIWQ The~ RICHARD SHERWOOD and THOMAS LAGAN. committed the crime

of GRAND LARCENY IN 11iB FlRST DEGREE. in violation of Pmal Law§ lSS.42. a cJau B

felony, oo or about Febnay 27, 2012 through January 2, 2015, in the City of Albany, County of

Albany, Stare ofNew Yost. and •wh~ when they stole property, and the wlue of the

property ex~ oae million dolim ($1 *000.000). to wit, the def~ts intentionally and

wro~y took, ~ or withheld money from Julia U. Rentz that she received from the

Family Trust~·within the PBRT in an amount~.one million dollars

(Sl,000.000) by falsely·~ to theattoruey~k-fact for Ms. Rentz and an Ohio attorney

tbat.Svised the ~in-fact, bmh of whom mi known to cilia invmgatOr. that the . relinquimmem of tbNe monies would result in the funds being distributed to charity all while

knowing ~ the funds wen: being tramfemd to an account located at LPL Fimmcial ~tied the

AUIT. solely controlled by the deferu.bmts1 and the money was distributed to and kept by the

defendmts for their own benefit.

CQUNI:rmum The def_. •• RICHARD SHERWOOD and THOMAS LAGAN, committed the crime of

SCHEME TO DEFRAUD JN nm FIRST DBGREB, ia violation of Penal Law i l90.65(l)(b). a

elm B felony, on or about August 9. 2011 through January 2, 201Si in the City of Albany, County

of Albany, State of New York, ud elsewhere, whm they~ in a scheme ~~ng a

systematic on~ course ot cow:luct with intent to defnwd more tn.m one person or to obtain ·

property from more than one penon by false or mwduJent pretenses. representations or promises,

and so obtained property with a vaiue in excess of one thousand dollars ($1,000.00) from one or

more such,~ to wit, the._._ engaged in a systematic ooaoiog co~ of conduct that

-resulted in the tnmfer of monies from. various Eswes md individuals into the AUIT, from which it

was ttamfem:d to their personal accounts, with the intent to defmoo and obtain property from these

Eswa and individ~. mcb.td.ing Julia u. Rentz, by false p~ and false •esenmtions that the

tmmfcr of tb.cae monies into the AUIT would result in the monies being distributed ro various

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clwimWe orpmmoos mvottUi by Alme Umim ad Wm-m Md Pauline Bru§ffllMi when in fact

the morues were dimibuted to ttw def~ for theu' pmwoo ~ aoo such oooooot reawred m the de~ obtailli.nJin excess of one~ dolw-s ($1,000.00) from Rootz and other iruividum and ~cs.

CQUNI fQU..R Tire dd~ts, ID:CHA..lID SHERWOOD tmd THOMAS LAGAN, committed the crime of

CRIM.INM.. POSSESSION OF STOIBN PROPERTY lN nm FIRST DEGREE. ir.t violation of

Peal Law§ 165.54, a cius B Fclooy, on or !!bout Janwuy 2, 2015 in~ City of Allmly, Cowity of

Albmy, S~. of New York, .md el~ WMn they koo~y pos~ stoJm property, with

intent to benefit ~lva or a pemm ~ than u. owner thereof or to impede the recovery by sn

o~. and when the value of the property~ 01W million ooH.m ($1,000.000.00). ro wit. the

~ did koowmgly ~ in a NB! bMk ~unt mding in 544·1 entitled the Empire

Capital Trut DID, whim~ dc~tslwi si~ey authority over. monies bav~ a moo in

~ of one mimoo dollm ($1.000.000.00) that were wm~l.y taken, o~ or withheld

from the Pal.iline Bruggeman ~e Trust too~ of Amw S. Urban, Md Julia Rmtz.

CQVNTfiV,E

The defendant RICHARD SHERWOOD. committed the crime of CruMIN.AL

POSSESSION OF STOLEN .PRO.PB.Rl'Y JN nm FIRST DEGREE. in violation of Penal ~ §

i6S.54, a clus B Felony, on or about J~ 2, 201S, in the City cf Albany. County of A.loony.

Stme of New York, and elsewheret when he knowingly ~· stolen property, with intent to

benefit himself or .a. pernon other than an OW!lef thereof or to im~ the recovery by m owner. md

when the value of~ propcny a~ one million dolws ($1,000,000.00), to wit the defendant

SHERWOOD did knowmgly ,~ in a Truswo bank account ending in 4640, whicll the

~t SHER.WOOD had s~ authority over. mom~ having a value in e~ of one .

million doilm ($1,000.000.00) W!t were ~Y ~ o~ or withhdd from the Pauline

Bm~em~ hvocable Trust, the es• of Amie S. Umm,. e.d/or Julia Rentz.

COJ.JNTSIX The defeooanti, TiiOMAS LAGAN, committed the crim.e of Cru.MINAL POSSESSION OF

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STOLEN PROPERTY iN nm FIRST DB~ in violation of Peml Law§ l6S.S4. a elm B

Felony, oa or about January Z. 201S. in die City of Albany, County of Albany. &ate ofNew York, ud else~ when be koowiqly ~~~.with intent to ~himself or a

person other than an owner ~or to·~ Che m:ovety by mown«, amd when the value of

the property~ one million dollars ($1,000.000.001 to wit, tfw ~ LAGAN did

knowingly~ in a Trust<io bank accouatmdiq in 2101. which the #~LAGAN bas .~ audlority over. mollies having a value in excess of om: m.illicn dollars (SJ .000:000.00)

that w= wrongfully taken,~ or witbbeld mm the Pauline B~ Rev~!e T~

U. estate of Anne S. lJJ:ban, and/or Julia ~tz.

, .... This felony ~tu is made by me oo dkect knowledge mt! upQD imormatjou and

belief. Tile.~ ofmy im~on and.Uie.~Jo.r my t,elief mclude but ~.Mt~ to ·.·· s .,,_.:. ·,· ·.:_:· .· ' .·

the followiq:·(a) my.uaim.ng. .... aud ~ in an invatiptfon conducted by the New Yoric State Offi~ of the Attorney~ ma the Federal Bureau onn~ptioo; (b) an incerv.iew of Richard SHERWOOD; (c) ~~~various~ (d) my review of

documents obtained·ftom the S~w!y Coumy and Albmy Cot.mty S~ Cou:rw; (e) my

review of financial and other records~,,_ -various financial imeitutions.

Q!IIXB 1. RICHA&O J. SHEaWOOD .(d.o.tt03/QS/60) is an attomey with the ~ of

~ Sberwood, 4 V~is, at 9 Washington Square.W~Ave. Bxt.ension,

Albany, New York. He also serves. pm** 1)$ one of the judges for the Town of Guilderland.

He WU~ to~ in New YOJkState in 1988. 2. THOMAS K. LAOAN (d.o.b. OMWS8), ,during most of the evcmts ~bed

hmm, was f.li.Jple)Jt:i4.t• an mvestmem advisor with amltical mmcia1 plamsing company

C'fimndat AdWllffl' Co."). lJ\GAN is an att.omey, admitred t.o practice b;t New Y orit in l 9S6,

thoup his primary empl~ bas been as a fimmciat~,- He is notCUl.'feDtly employed by

the fimmcw Advisor Co •.

3. Alme Urban wu born on March 4, 1920, and wu a resident of Wuwrvliet,

Albany County, ,ad N~ ~ Qmnty. She worked most of her adult life at

~ Eleciric as a~. Uman nwec married and Md no cbildmn. She had two sisrm,

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Pawioo B~ a.od Jµlia Rmtz. She died oo February 20. 2013, • age nmety-two. baving suff'end from declming health in the period before her death.

3. P~B~ nee Urban, Ame Urball•s Ii•, resided m Nmyuna until

her death of cmcer at age eipty-sevm on August9, 2011,~ Anne. She was the wldowofWanm~.

4. Warrea ~1-..,, was the bad of Global Nuclear &era for Gcmnl Electric

and a ~.p,i~ to Capital District charities. He died on April 28. 2009, with bia wets paminl r.o his wife Pauline.

5. Jwhl Raitz, me U~ Ame UrbM md Pauline Bmgeman~s sister, reside« in

Ob!o wml bet~ on September 22, 2013 at age ninety-five. She ad been suffering from

._.. in the years before her death.

· 6. RICHARD SHSRWOOD and lllQMAS LAGAN have provided cstate~g and miamd legal and fina_,ial aervica to Wmm~Pawme B~and Anne S.

Urban since at ie.. 2006.

1. On July 12, 2006, Warren iwd Paufule ~-each~ uevocable trust -

the Wm. H. B~ Revocable !nm: ("WBR'r) and the Pauline B~ Revocable

Trust (uPBR'f'1. On the sar;nc day, each~ siFed a will stipulatmg that au estate assets

individually owned by each pel80ll would flow tbrogb their~tmsts in an~~

taown u a "spillover trust." SHBR.WOOD witaeaodtb.e ..... of bodl individuals on all of

the documents.

s. Wamm's will name Pauline as the Exec:umx, with Anne Uman as first alt&!mate.

md ~~swill named Wme.n. as Executor, with Anne Urbtn u fim alternate. Both wills

named THOMAS LAGAN u the~ al~ in the cue Umt the primmy or first alternate

were~ or wwilliog ro act as Exewtor~x.

9. On or about J•uary 15, 2008, Anne Urbanaipd a Power of Attorney ("PO.,\")

mmiDa SHERWOOD llJ.d LAGAN as "succeuor ~;

10: On April 28, 2009, Wam:a ~died. He wu survived by ms wife

Palllim: Brug~ Anne Urban's~. &sed on a review of&~y County probate

records ad the WBRT, Wamm'sassetsfiovvedtbroup the WBRTto P~bisswviving

spouse. ~rdmg w ~Y County Smrogate's Cow:t recoros. PIW!me received

~:!drrmtcly $8,470,000 from the WBRT. with ~~y $3,570,000 in additio.uljoint

property. The WBRT ~ an mtity blown as the .. Family Trust." The Family Trust wu

~ with $4.135.3S3A6 from the~ of Warren BmMenw1. According to the terms oftb

Fumy Trust, A.Me Urbm Md Julia ~tz were to evenly divide the~ ftmds upon the deathoftheirmsterPawmeBruggemm.

11. On August 9, 2011, P~ ~ AMe U~'s sister, died while a

.· residmt of~y County. Based oo a review of tu btmk ~ for Paulie Brugg~

the PBRT, and~ Fm.illy Trust that OAG Auditor M~ Soovello rondoored,. Pwlme•s

~ ad trust~ at tiw time of her death were ~xi~y $19,838,789.12.

12. The "Family rrust• with a 6~ of appw~y $4,i8S)S3.%, which wu

con~ withw the PBRT. awarded the~ to be distributed eq~Uy ~ Amie Urban

mt! Julia R.mtz. TIie .PBRT also awarded Ame Urban $2,000,000 as an outright bequest, aoo it dicmted tut .m ~tiona.l $2,000,000.00 wowd be ~Red fur the "health. ~tioI4

~ a support" of Anne Urtm and 448Mil oonf.imw to be held by the TR.USTBE. IN

TRUST, which trust slwl be known &s the 'Umim Trust"' "Upon the ~wmt death of

ANNE s. URBAN, the then mnainmg l)mlelpei and mtdimiooted. mcome of tile Um.an ,Trust

shall be diitrlbuted as part of'the residue ofthffl f PBRTJ Trust" Un.der the terms of the PBRT,

a.oy residua.I fuwJs must then be distributed to six~ dwities in ~&bed ~ragea. 13. On S~ber 7. 201 l, Amie Urlmi iigmd dttn.um;wron ofN~

. Executrix and T~. appointing 1homu ~ as the Executor for ?&time Bmggemm•s

~ Md SHERWOOD u the S~r Trustee of the PBRT. SHERWOOD moo served u the

~atmmey.

14. Y~ Advisor Co. provided OAO with LAG.AN's m:wk ~ the

Bru,umum and Urom~. On-~29, 2011. SHERWOOD mwled LAGANt

ntt.!Whm$ his submission to ~Y County Surrogate's Court regarding lire ~te of

Pawmel:ln1a,eum1. In the ail~ he ei~ ~ tut the Court would "require[e] the AO

ro be involved for the dlarities. Keep your fmgers ~ .. Based oo my review of the case

~ts ud dillcuuiom with OAG attorneys, I believe SHERWOOD's reference to "the AO [being] involved" re1atea to the OAO's ~ authority over charities. Pmumal>ly, if Schenectady S~'s Cow1 brought the OAO in to the Brugeman ate matter, OAO attmmys would have been posi~ to~. the charities' ~ and track the $2,000,000 Urban Trust.

ls. m 2011, Julia Rmtz (then living in Ohio} was~ from d~ia. She had

~llor mmd as attomey-m.·fact. This frlmtd was miafed. in her role u attorney-in-fact

by an Ohio attorney (1'0hw Attomeyi. AJ part of tb.i& mv~on, I have interviewed the Ohio

Attomey about this .sentdm I6. On Sept.ember I, 201 I, SHBI.WOOD mled die Ohio Attorney a copy ofdle

PB.RT. The Ohio attorney rewled ~ with SHERWOOD over ttae pbon.e in Februaey

2012 about Julia ~'s --.. She was concerned. since Julia's damagbtw was~ and Julia was not of sound mmd ro wri~ a mw will, that Julia Rmt:z'1 evemual ~ wowd ~ to the State of Ohio. ~ to die Ohio ,Attomcy. SHERWOOD expressed bis shared

coac:ems about the state of Ohio taking the assets and they discuued a plan to prevent it. The

Ohio Attomey was awn, 1hat JLIJia and. her sisters ~ generous donors to chamios.

17. On November 9. 2011, Anne Uibm ~m~to her POA, addiqa

gift rider> whidl ~w~ SHERWOOD~ LAOAN (as ~~t) to li,ye gifts from

beramtdl. However, by the terms of Ile POA,. SHERWOOD and LAGAN were·barmi ftom "'self-gifting"'.

l S. On Nowaber 30, 201 I. ArlQ8 Um(lll 1iped lbe Amie S. Urban lnevocable Trust

("AUIT"). The AUIT n.e.med RICHARD SHERWOOD as T~ md THOMAS LAGAN as Suec:esmr Tnmee; it was drafted ~y SHBllWOOD. The AUIT ~ the Trustee,

~ .. . ·. . ..

SHERWOOD. the power to distribute the pmroipal of the trust to "my person •.• ~ly inelmg the TRUSTEE and/or .tlte SUCC~SORJRUS!EB .•. but ooly'Nith the~

writtm consent of the SU~R. TRUS'.I'EE dlCll sening." LAGAN was the~

Truatee. This ~a&wod SHERWOOD and LAGAN to dhfflly becdit &om too AUIT.

19. On December6, 201 l,SHERWOOD~Sl.000~ from Che Pauline

13:s:u~ ~ account at Trustee &mt to the AUIT ~ at LPL Fiwmcial. On January

30, 2012, he ... a second transfer of $2.000.000 ftom the~ ~estate account

with Goldman Sac.m to the AUIT LPL F~ account in which the~ of tlte AUIT were

held on January 30. 2012. 20. Prom February 13, 2012 to Fcbnmy 28. 2013, the attorney-in-tact for Julia Rentz,

after consulting with~ Ohio· Attomey. made four mmfen mtelina $2,905,499.37 from Julia's

Fidelil;y accoum to «be AUirs LPL Pimmcial account The Ohio Attorney believed. based on

her~~- with SHERWOOD, bit the funds would be given to the clwities listed in

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the PBR.T. However,~ oon~ of.Julia ~·s LPL Fmmcial OOC@tmt, which held Julia's

Family Trust~ were oot ~tom ~wt~~ with the PBRT. to be dimhutoo

to cmritia. ~. ~ oo directives from SHERWOOD, the funds were~ to the

Anne 8. 0mm lmwooable Trust, wider Ure cootrol of SHERWOOD and LAGAN.

21. Aue Umm died oo Febmiicy 20, 2013. In March 2014, ~ Arme Uibu"s

~, ~on were .made to the six chari~ ~in~ PB.RT, however, the dismootiom

weredmwo oo aPBRT NBT But ~t tut was not~ at any~ by file residue tut

should have come mm tmAUIT LPLFinaru}W S£COimt upon.Anne's~ in February 2013.

Thepa~ ~ made only with fiD.is that had re~ in Pooline~'s ~ and

the PBR.T. Aooordmg to tile wms of the PBRT, upon Ame's da.th my ~.fw!ds from

the $2.000JJOO in mm must be~ m ~ PBlT for distribution to~ six mmed charities. ~~~~to~ PBRTtobe ~ed to tboaemmedchfflties,. allrmwrung timds v.rere·io fii.ct disposeA of through the AUIT, ~y for the benefit of SHBI.WOOD and LAGAN.

22. On December 19, 2014, the Empire Capital Tmst was form~ for the benefit of

SHERWOOD md LAGAN. with smm.wooo as~ Oil January 2, 20154 SHERWOOD

amhorix.ed a wire: ~ from ttw AUI! (Fid,lity Acrount) to the Empire Capiw Trust account

atNBT~m5441.

23. On Jam.my 2. 2015, 8fflm.W00D autooru:ed a wire tmnsfer of$3,598,90& from

~ AU!T (Fidelity~) tom ace<.mnt in his lWM at Tmmco Bek.~ in 4640.

SHERWOOD alw a~ a wire t.ramfer of$2,693,US.92 fua die AU.IT (Fidelity

~) to Md aooooot in THOMAS LAGAN•s ~ at Tmtoo hlk •Jl3 in 2101. which

was ~ received oo. Jam.wy 2, :201 S.

24. On F~ 21, 20Ht l ~ewed S~RWOOD at tire law office of Mazzotta,

Sherwood & V~lis. During that ~iew SHERWOOD amnitted, m sum amt s~~

that he and ~ 0011Spum .to ~ive tu Ohio Attorney mm .autbo~ the wiring of m

excess of$2.000.000 to the AUIT. He llso ~· that the AUIT wu a·m~sm used to

~the~ funds mf! M he Md~ divided the~ of dim sclwne in roughly even

amowm. SHERWOOD also~ that tire-~ mcl~ the worn.mg of the trusts. was

devised by tapn but that he. s~ dmfted the~ in order to eff~it

No-~: Aaf ~ woo~wiqty mbs a&kes~tma 'Mffim~t~•~

,_yCm:npwmd ~un~~not~ tobe•-~mmttooa.mme ~ ~~ ofb S•,oCNewYll.'dpumwbleuac:1-A misd{t~(P~ uw § :U0.45).

From:Tcwn @f G1o1Ud@rf11,;~d

'i, ,.

Hon. Peter G. Barber Town Sup«v:isor Town otOuUderbmd

Ri~dJ.S~od SO! Ugloo Drive

Schen~y, NY 12303

Guilderland Town Hall. 200 Floor\ P~O.Boxl39 Oulld«lam.t. NY 120$4

DtmrMr.~

It b with~ that effective tm; ~i l .berel:ty .rmi~ from my position as Town Justice. ·

l wm Hk the Ruman R~ office to &ci!itite. any twtller steps required to a~nplish my sqmmtion as t town empio,Yt}e,

l want to thank yoo and tbe Town Boam for your .support of OW' Gowt dw-i~ the tim@ofmy oorviee.