Can You Safely Wire Money to an Attorney's Escrow Account? A New York Court Says Not Necessarily

Many investors, real estate purchasers, and business owners assume that if their money is wired to an attorney's escrow or trust account, the funds are automatically protected. A recent New York decision demonstrates why that assumption can be a costly mistake.

In Bentura v. Kashani (Sup. Ct. Kings County 2026), the plaintiff alleged that she was introduced to a Brooklyn real estate investment opportunity in 2023. After being shown one property and presented with another investment opportunity involving a project at 139 Van Buren Street, she wired $200,000 to one of the promoter's attorney's trust account. According to the complaint, the funds were intended to purchase a 33.33% ownership interest in an entity known as 139 Van Buren LLC. The plaintiff later learned that the entity allegedly did not exist and claimed that she had been defrauded.

The plaintiff sued multiple defendants, including the attorney that maintained the trust account, asserting claims for fraud, aiding and abetting fraud, breach of an implied escrow agreement, conversion, unjust enrichment, constructive trust, and other causes of action. The theory against the attorney was straightforward: the money went into his attorney trust account, therefore he should bear responsibility for what happened to it.

The court disagreed.

According to the decision, the attorney had never met the plaintiff, never communicated with her, was never retained by her, and never received any escrow agreement or instructions from her concerning the funds. He explained that he represented one of the project participants only. Several months later, acting on written instructions from his client, he disbursed the funds to third parties in connection with real estate matters.

The court held that there was no escrow relationship or fiduciary duty between the plaintiff and the attorney. In language that should concern anyone who assumes an attorney trust account automatically provides protection, the court stated that the mere receipt of money into an attorney's account does not create an implied escrow account as a matter of law. An attorney's trust account is not automatically an escrow account for the benefit of every person who sends money into it. Instead, an escrow relationship generally requires specific instructions, agreed release conditions, or other evidence that the attorney agreed to act as a fiduciary stakeholder for the parties. Because the plaintiff alleged no communications, instructions, or agreement with the attorney, the court found that no escrow relationship existed.

The ruling has important implications beyond the facts of this case. Every year, individuals wire substantial sums to attorney trust accounts believing that the attorney is serving as a neutral gatekeeper who will protect the money until certain conditions are met. But many attorneys holding such funds represent only one side of the transaction. Unless the attorney expressly agrees to serve as escrow agent and accepts duties to both parties, the sender may discover that the attorney owes duties exclusively to the attorney's own client.

The practical lesson is simple. Before wiring money to an attorney trust account, ask a few critical questions: Who does the attorney represent? Is the attorney acting solely for the other party or as a neutral escrow agent? Is there a written escrow agreement? What conditions govern the release of funds? Has the attorney expressly acknowledged fiduciary duties to you? If the answer to those questions is unclear, your money may not have the protections you think it has.

Are you an investor about to deposit money with another person's attorney, feel free to give us a call with any questions.