Posted Apr 15, 2010 9:09 AM CDT
By Debra Cassens Weiss

Investors who entrusted their money with a New York lawyer who apparently jumped to his death last month are claiming losses of $27.8 million.

More than 90 victims have reported that Long Island lawyer Jay Korn, 70, defrauded them, the Long Island Herald reports. Investigators with the Nassau District Attorney’s office say three or four new investors are coming forward every day with allegations that Korn took their money in a real estate investment Ponzi scheme, Newsday (sub. req.) reports.

A lawyer representing some of the victims, Jerome Reisman, alleged in an interview with the Long Island Herald that Korn took money in a “bogus” real estate investment scheme and converted client funds. “This is nothing more than a mini-Madoff,” Reisman alleged in a previous story by the Long Island Herald.

Lawyer Larry Cline, who represents other investors, knew the Korn family and attended high school with his daughters. "Jay Korn was always a very well-respected member of the community,” Cline told the Herald. “I think people were shocked and ultimately will be very disappointed if this whole debacle turns out to be a fraud.”

Korn had been president of both the Middle Bay Country Club and the Oceanside Board of Education.

Evidence has been seized from Korn's law firm, Korn & Spirn, but neither the firm nor the other name partner, Arthur Spirn, are under investigation, the Long Island Herald says.