Jose Polanco, a 52-year-old suspended attorney from Middle Village, has been indicted in Queens on accusations that he siphoned more than $1 million from two homeowners and Dime Community Bank, according to prosecutors. He was arraigned in Queens Supreme Court on Thursday and ordered back to court on July 15. Prosecutors say the alleged scheme centered on mortgage-refinancing closings that involved checks with insufficient funds and transfers of money to bank accounts in Peru.
In a press release from the Queens District Attorney’s Office, officials said Polanco is charged with grand larceny in the first and second degrees, criminal possession of stolen property in the first and second degrees and scheme to defraud in the first degree. The DA’s office alleges he issued bad checks at two refinancing closings, shortchanging clients of more than $400,000 and leaving Dime Community Bank responsible for roughly $744,000. According to the release, more than $1.5 million was transferred to accounts in Peru, and if he is convicted, Polanco could face between 8 1/3 and 25 years in prison.
Polanco’s disciplinary history was already on the record long before this case. A 2018 decision by the Appellate Division ordering a one-year suspension found that he mismanaged client escrow funds and consented to disciplinary measures, according to court records. That order, which took effect June 22, 2018, is publicly available and highlights an earlier pattern of escrow-account problems documented in the Appellate Division’s published decision.
A pattern of thefts by trusted professionals
Prosecutors and consumer advocates say this kind of case is part of a broader trend in which people trusted to guard the money end up accused of taking it. Last month, a Manhattan real-estate attorney was hit with a similar indictment announced by the Brooklyn DA, and a Queens bank worker recently pleaded guilty in an insider-fraud case after he allegedly helped rip off TD customers for $3.4 million.
Charges and next steps
The indictment lays out multiple felony counts that could carry significant prison time if Polanco is convicted. He is scheduled to return to Queens Supreme Court on July 15 as prosecutors continue their investigation. The DA’s office is asking anyone who believes they were victimized in a real-estate transaction to contact its Consumer Fraud Helpline at 718-286-6673.
As the case moves forward, the Queens District Attorney’s Office noted an important legal reminder in its release via the Queens District Attorney’s Office: “Criminal complaints and indictments are accusations. A defendant is presumed innocent until proven guilty.”
