Ex-Gov. Paterson sues brother over alleged $7M estate swindle
David Paterson has leveled serious accusations against his own flesh and blood. The former New York governor claims his younger brother, Daniel, surreptitiously diverted millions from their mother's estate before her death.
According to the New York Post, Paterson filed a bombshell lawsuit Monday in Manhattan Supreme Court alleging his brother tricked their 94-year-old mother, Portia, into transferring over $7 million to his personal accounts. The legal action represents a stunning family rift between the brothers, who were once photographed together at JFK airport as children.
The lawsuit claims Daniel Paterson, 67, bypassed their mother's long-standing will that called for her estate to be split equally between her sons. Instead, through what the former governor describes as "undue influence, coercion and excessive persuasion," Daniel allegedly convinced their elderly mother to transfer her substantial assets directly to him before her July 2024 death.
Family Betrayal Spans Millions in Assets
David Paterson, who is legally blind and served as New York's 55th governor from 2008 to 2010, claims he discovered the alleged deception only last month when his brother filed an affidavit to settle their mother's estate in the surrogate's court.
The court documents paint a stark picture of deceit. Daniel allegedly claimed their mother died with minimal assets - just $27,000 in a bank account and an "inoperable" 2011 BMW valued at $2,000. After subtracting funeral expenses, David's inheritance would amount to approximately $10,250 - a far cry from the $3.5 million he believes he's entitled to.
The former Democratic governor's attorney, Paul W. Siegert, expressed shock at the discrepancy, stating, "How could she die in July of 2024, and we only find out almost a year later that her will was not being probated and then out of the blue, we get a notice from the surrogate's court that her net estate is $21,500."
Brothers' Bitter Battle Heads to Court
The lawsuit names not just Daniel but also his attorney wife, Eloise, and two nephews as defendants in what David characterizes as a conspiracy to conceal the asset transfers. Daniel currently works for the state court system's office of diversity and inclusion.
When reached by phone on Tuesday, Daniel reportedly told a reporter the call "must be a scam" before quickly hanging up. He has not responded to further requests for comment on the allegations, leaving his side of the story untold as the legal proceedings begin.
Portia Paterson, who passed away at 94, was a respected educator who spent years as a teacher at P.S. 116 in Jamaica and later as a guidance counselor at Queens College. She was married for 61 years to Basil Paterson, the first Black vice chair of the National Democratic Party and New York's first Black secretary of state.
Mother's Legacy Caught in Legal Crossfire
According to the lawsuit, even Portia's attorney of three decades was unaware of the alleged $7 million asset transfer. This suggests either extraordinary secrecy or potentially questionable circumstances surrounding the transactions.
David's lawsuit seeks his purported rightful share of his mother's estate - at least $3.5 million - along with damages from his brother, sister-in-law, and nephews. The legal action alleges "unjust enrichment" and portrays Daniel as having deliberately concealed the transfers.
Siegert claims Daniel, as executor of Portia's estate, never even notified her longtime estate lawyers of her death. This alleged omission further complicated the discovery process and delayed David's awareness of the situation until nearly a year after his mother's passing.
Lessons to learn from this tragedy
Situations like these — involving estate disputes and family deception — underscore the importance of proactive legal protections and transparency. Here are three important lessons drawn from this troubling case:
1. Keep estate transfers documented and transparent: Even in trusted family environments, large financial transfers should be clearly reported with proper legal oversight. Parents and guardians should always consult third-party professionals when making major changes to estate plans.
2. Designate and notify responsible executors: Being named an executor carries serious responsibilities. Family members should ensure all estate attorneys and relevant parties are made aware of a death and involve witnesses and documentation for all related proceedings.
3. Understand that crime can happen in any family: While planning can reduce risk, it cannot eliminate it entirely. No victim, including David Paterson, is ever at fault for being blindsided by those they trust. Legal systems exist for recourse precisely because betrayal can occur in even the closest families.
Why this story matters
This story offers far more than celebrity drama — it reveals potential vulnerabilities in our estate systems, especially for elderly individuals with substantial assets. If true, the accusations point to ethical and legal lapses by those entrusted to act in good faith. Such patterns of behavior, if unchecked, could erode public trust not only in families but in institutions handling legacy planning and inheritance. Community awareness and vigilance are needed to protect others from similar abuses.
Conclusion
Former Gov. David Paterson’s recent lawsuit accuses his brother, Daniel, of manipulating their mother, Portia Paterson, into transferring more than $7 million in assets before her death, ultimately depriving David of his rightful inheritance. The legal complaint, filed in Manhattan Supreme Court, also names Daniel’s wife and sons as alleged participants in the plan. As family members sort through the legal fallout of these claims, a larger conversation is emerging over the potential for abuse in estate planning — and how we might better protect the most vulnerable among us.