Servicing

NY State Senator accused of embezzling foreclosure funds

The foreclosure crisis sweeping New York may have caused the downfall of a state senator from Brooklyn.

The New York Daily News says State Sen. John Sampson (D-Brooklyn) was appointed by judges in his jurisdiction to serve as referee for various foreclosure sales.

His sole job was to receive proceeds from various foreclosure sales and then pay off the remaining mortgages, lawyers, creditors and homeowners.

The paper says prosecutors are now charging the state senator, alleging he used surplus funds from some of the sales — totaling $440,000 – for other purposes, including funding for a failed campaign for Brooklyn district attorney.

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