Applestein et al vs. Kleinhendler et al

Case Background

On March 19, 2020, Plaintiff Allan H. Applestein filed a fraud lawsuit in the District Court of New York Eastern (Case number: 1:20cv1454). Judge Frederic Block and Magistrate Judge Marcia M. Henry presided over the case.

Cause

Allan Applestein, born in 1932, was a Harvard Law School graduate and a successful business investor residing in Aventura, Florida. He founded Diatomite Corporation of America (DCA), which owned approximately 1,000 acres of valuable land known as the Fones Cliffs Land in Richmond County, Virginia. By 2015, Applestein experienced a significant decline in health and was diagnosed with Alzheimer's disease, requiring round-the-clock care. Howard Kleinhendler, an attorney and partner at Wachtel Missry LLP in New York, began representing Applestein and DCA in 2010. The initial engagement started with a $100,000 retainer, and total legal fees paid reached approximately $175,000. Kleinhendler regularly visited Applestein's home, gathering information about his personal life and financial affairs from staff members. Dr. Andrea Bivens, Applestein's daughter, explicitly warned Kleinhendler about her father's declining health. The attorney observed Applestein's diminished capacity firsthand, noting his inability to focus during meetings or handle basic tasks. In 2013, Peter M. Jarowey offered $8.3 million for the Fones Cliffs Land, later increasing the offer to $12.5 million in cash. Kleinhendler convinced Applestein to reject these offers, claiming fraudulent aspects related to the transactions. A subsequent deal with the Chesapeake Conservancy also fell through. Kleinhendler's Scheme: In 2017, Kleinhendler orc