In a legal saga straight out of Wall Street intrigue, New York attorney Edward J. Lake has filed a $20 million hostile takeover lawsuit against a group of out-of-state investors, accusing them of illegally seizing his firm, draining millions from its accounts, and sabotaging a pending $18 million financing deal.
The explosive complaint, lodged in New York state court, names Lee Melchionni, Sylvia Benito, and Richard Solit, all tied to Justice Partners LLC, as the main culprits. Lake’s suit claims fraud, racketeering, and unauthorized practice of law, painting a picture of deception and corporate betrayal at the highest levels.
Rival Claims: Ponzi Allegations and Retaliation
The legal firestorm erupted just days after Benito filed her own lawsuit in Suffolk County Supreme Court, alleging that Lake duped her into investing and loaning millions under false pretenses. She accused him of “effectively running a Ponzi scheme.”
“Ms. Benito brought suit to hold Edward Lake and his firm accountable for misusing investors’ funds,” said her attorney, William A. Brewer III of Brewer Attorneys & Counselors. “His new filing is retaliatory and unlikely to withstand scrutiny.”
The dueling lawsuits trace back to a tangled web of mass tort litigation financing gone sour — a high-stakes world where billions hinge on lawsuits and settlements that sometimes never materialize.
