Albany Attorney Albert Hessberg III Pleads Guilty to $2M Fraud

Albany attorney Albert Hessberg III, 64, of Slingerlands, New York, pled guilty today to stealing at least $2,060,803 from clients and his longtime law firm in a brazen, decade-long fraud scheme that exploited the trust of elderly and vulnerable clients. The admitted thefts, which began in 2006 and continued until his termination in 2018, shattered the foundation of fiduciary responsibility that defines the legal profession.

Hessberg, who worked for 37 years at the Albany office of what is now Barclay Damon LLP, used his position as a trusts and estates lawyer to siphon off client funds, forge account balances, and bill for legal work never performed. He stole from client trust accounts, laundered stolen money between accounts to cover his tracks, and diverted payments owed to the firm into his own pockets. His fraud was so deeply entrenched that he continued the scheme even as clients raised questions—responding with lies and fabricated documents to maintain the illusion of legitimacy.

The charges to which Hessberg pled guilty include one count each of wire fraud, mail fraud, and filing a false tax return. He did not report the stolen funds as income, further compounding his crimes against the federal government. The case was investigated by the FBI and IRS-Criminal Investigation, highlighting the intersection of financial deception and tax evasion at the heart of the scheme.

“Albert Hessberg betrayed his clients, his law firm, his profession, and the courts,” said United States Attorney Grant C. Jaquith. “He stole $2 million from his clients by taking advantage of their trust, and when they asked questions about their money, he repeatedly lied to them to hide his theft.” Jaquith credited Barclay Damon LLP for reporting the fraud immediately upon discovery, a move that ultimately brought the scheme to light.

FBI Special Agent James N. Hendricks emphasized the human cost: “This is a case about greed and the abuse of trust. Albert Hessberg abused his position and defrauded clients of over two million dollars. His clients trusted him with their life savings and now he must face the consequences of his actions.” The FBI’s involvement underscores the severity of professional betrayal in cases that erode public confidence in institutions.

Hessberg faces up to 20 years in federal prison, a maximum $250,000 fine, and up to three years of supervised release. Sentencing is scheduled for September 5, 2019, before U.S. District Judge Mae A. D’Agostino. In November 2018, following his arrest, the Appellate Division, Third Department, suspended him from practicing law. Assistant U.S. Attorney Michael Barnett is prosecuting the case, which stands as a stark warning to those who exploit their professional standing for personal gain.