Cooperstown man sentenced to prison for stealing $11.8 million from estates

A Cooperstown man was sentenced Wednesday to six-and-a-half years in prison for money laundering after stealing roughly $11.8 million from estates for which he served as a fiduciary.

Posted: Dec 11, 2019 4:12 PM
Updated: Dec 11, 2019 4:45 PM

ALBANY, N.Y. – A Cooperstown man was sentenced Wednesday to six-and-a-half years in prison for money laundering after stealing roughly $11.8 million from estates for which he served as a fiduciary.

Thomas K. Lagan, 61, pleaded guilty to grand larceny in the first degree after admitting that between November of 2011 and February of 2018, he conspired with Richard J. Sherwood to launder money after defrauding the estates of three sisters in the Albany area.

Judge Lawrence E. Kahn also ordered Lagan to pay more than $7.7 million in restitution, and to forfeit the following as proceeds of his crimes: 10 bank and brokerage accounts; an additional $255,000 already paid to the government; three properties in Otsego County; a 2016 Mercedes Benz S550; a 2015 Jeep Wrangler Sport; a 2015 Lexus RX450; and a 2015 Sea-Doo jet ski and accompanying trailer.

Starting in 2006, Lagan and Sherwood provided estate planning and related legal services to philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, N.Y. They were advising the Bruggemans when they signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Pauline’s sisters, Anne Urban and Julia Rentz.

In pleading guilty, Lagan admitted that after Pauline’s death, he and Sherwood stole millions of dollars from her estate as well as from Urban, who died in 2013. They also transfered to themselves millions of dollars belonging to Rentz, a resident of Ohio, who was suffering from dementia at the time, and died in 2013.

Lagan admitted that in total, he and Sherwood stole $11,831,563, and that nearly $6.3 million was transferred outright to him.

Lagan also admitted to filing false federal tax returns in 2013 and 2015, when he did not report, as other income, millions of dollars that he received from the fraudulent scheme.

New York Coronavirus Cases

County data is updated nightly.

Cases: 1686993

Reported Deaths: 48247
CountyCasesDeaths
Queens2172658903
Kings2169639239
Suffolk1658793120
Nassau1519702951
Bronx1482105943
Westchester1099512122
New York1068643974
Erie666041616
Richmond585451602
Monroe53274997
Rockland39546896
Orange38029730
Onondaga32733636
Dutchess22900413
Albany21180334
Oneida19896481
Niagara15508315
Broome15384339
Saratoga12190148
Schenectady11010178
Ulster10279231
Rensselaer9205132
Putnam853986
Chautauqua7425125
Chemung6480130
Oswego610689
Ontario589890
St. Lawrence568990
Steuben5581138
Cayuga542889
Jefferson489163
Sullivan486360
Herkimer4601107
Wayne452865
Cattaraugus448977
Genesee4473118
Madison389385
Clinton376127
Livingston359956
Tompkins350943
Columbia344396
Fulton342485
Montgomery3244107
Cortland323160
Allegany292481
Warren290755
Wyoming287949
Tioga285456
Greene270071
Chenango248770
Orleans247282
Otsego247043
Washington239754
Franklin216012
Lewis209630
Seneca164853
Delaware157333
Essex136326
Schoharie124313
Yates102326
Schuyler87212
Hamilton2852
Unassigned16099
Out of NY0194
Rome
Clear
20° wxIcon
Hi: 26° Lo: 5°
Feels Like: 7°
Binghamton
Partly Cloudy
22° wxIcon
Hi: 28° Lo: 11°
Feels Like: 13°
Rome
Clear
20° wxIcon
Hi: 27° Lo: 8°
Feels Like: 7°
Rome
Clear
20° wxIcon
Hi: 21° Lo: -2°
Feels Like: 7°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Foodie Fridays Rosa's 50% 0ff - Now thru March 18
Submit your Mutt Madness Picture through March 10th
March into Beautiful Skin Giveaway
Under 100 2021 Golf Cards left!
Saluting Those Who Are Proud 2 Serve