Westchester Surrogate’s Court’s Dastardly Deeds

by Frank Brady © 2007

When 88-year-old Berta M. Murray died on August 12, 1997, she probably had not previously considered that the Scarsdale home built by her father, and that had been in her family for decades, would soon be occupied by a Westchester County Surrogate’s Court attorney-referee who worked in the very same court’s law department charged with the duty to oversee the affairs of the deceased-- A fact that has been secreted from her surviving relatives, until recently.

But Westchester Surrogate’s Court employee, attorney-referee Jody B. Keltz and her attorney-husband, Carl T. Peluso of Peluso & Touger in Manhattan, really liked that house at 168 Gaylor Road in Scarsdale, so in they moved in the Spring of 1998. And the two attorneys still call it home, even now as questions swirl as to just how they came to own the dead lady’s house.

By all accounts, the Keltz-Peluso attorneys never knew Berta, and they had most likely never invited the elderly widow to their prior home located at 75 Third Place in Brooklyn, New York.

“It’s outrageous that a Surrogate’s Court lawyer bought Berta’s house,” said an 80-plus-year-old cousin of Berta, and who only recently learned that Ms. Keltz was a lawyer in the Westchester Surrogate’s Court. “This stinks to high heaven, and I’m mad. It’s just not right, I don’t like this at all!” she added.

The real estate deal by the Keltz-Peluso team is reminiscent of a Brooklyn Surrogate Court “arrangement” in 2002 where, as the Village Voice described it, Judge Scholnick’s clerk “…snatched up the 11-room brownstone…of 85-year-old Elsie Perry…in a move that would make Donald Trump proud…” Honorably, Brooklyn Chief Court Clerk, George Crowley, refused to keep quite, saying publicly that, “If I did this, I would expect to be fired. The whole thing was unethical…the judge shouldn’t have allowed it…”

Brooklyn senior court official Crowley was so outraged by the cozy inside real estate deal that he took the highly unusual step of placing a note about it in the decedent’s Brooklyn Surrogate’s Court case file. But in the Westchester Murray-Keltz-Peluso transfer, no such concern has ever been voiced or documented by Surrogate’s Court Chief Clerk John Kelly or Surrogates Emanuelli or Scarpino. “Isn’t a Surrogate Court supposed to make sure everything is on the up-and-up, and handled properly?” asked Berta’s cousin, adding, “I knew Berta over seventy years, and everyone knew she wanted that house to stay in the family.”

Berta’s Dead: Enter The Vultures

A cursory review of Berta Murray’s estate file appears that it is largely normal, according to legal experts engaged to analyze the Murray estate transactions, and who are familiar with New York estate law, ethical obligations and the specific practices of the Westchester County Surrogate’s Court. However, they noted, the complete absence of any estate file “accounting” is quite unusual. And though not required, the name of Surrogate’s Court attorney-referee Jody B. Keltz, is nowhere to be found in the estate file. However, a review of the property Deed on file in the Westchester County Clerk’s office memorializes the transfer of ownership of 168 Gaylor Road in Scarsdale from the “Estate of Berta M. Murray…by The Bank of New York…to Carl T. Peluso and Jody B. Keltz, his wife.”

In a recent telephone conversation, a court employee confirmed that Ms. Keltz was still employed as an attorney-referee in the Surrogate’s Court’s law department. When asked to comment about the Keltz property transfer, she advised that, “If you want to keep your job around here, you keep your mouth shut.” When asked her name, the telephone connection ended.

A quick review of Berta’s estate file also shows a relatively standard probate proceeding, and it is quickly observed that The Bank of New York is the fiduciary and that the house was valued at $350,000.00--approximately one half of the total estate value of $742,968.00.

But an in-depth analysis reveals some eyebrow-raising facts, including that Berta’s last will was substantially different than her stated wishes as expressed to friends and relatives since her husband Elmer died in December of 1982. “In Westchester, everyone gets a crumb,” one estate lawyer noted. But those associated with the “new” wishes of Berta Murray EACH received “crumbs” worth tens of thousands of dollars: (1) attorney W. Rowland Miller of the Judy, Miller & O’Connor law firm in Scarsdale, and who drafted the Will for Berta (and in which The Bank of New York is named as the new fiduciary), and who was then retained as the attorney for the fiduciary, The Bank of New York; (2) attorney Samuel S. Yasgur, then of the Hall Dickler law firm, and who was appointed by former Hall Dicker lawyer and then-Judge Emanuelli to represent “unknown heirs”; and (3) real estate agent Camille Paradise of Claire D. Leone Real Estate, who lived in Berta’s neighborhood and who was the realtor that handled the sale of the house to court employee Keltz and her husband.

“Judges and attorneys have an obligation to avoid even the appearance of impropriety,” observed one White Plains estate attorney who asked that his name be withheld, adding, “But that ethical requirement doesn’t apply here-- every player gets their piece of the pie-- that’s how court business is done in Westchester County.” He conceded that, “On its face, this doesn’t look good-- a state-employed attorney-referee working in the Surrogate’s Court shouldn’t be purchasing a house from any estate her court is overseeing.”

Under Westchester County Surrogate Anthony A. Scarpino, court attorney-referee Jody B. Keltz continues her work insuring a high level of integrity in the administration of estate proceedings, also while holding professional fiduciaries, such as banks, to a high set of ethical and performance standards.

The biggest “crumb” from the Estate of Berta M. Murray went to Westchester County Surrogate’s Court attorney-referee Jody B. Keltz and her attorney-husband Carl T. Peluzo. That “crumb” -- the house and property located at 168 Gaylor Road in Scarsdale is, according to the village of Scarsdale tax office, now conservatively valued at $950,000.00.

(Note: The New York State Inspector General’s Office is currently reviewing the matter.)

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