Law 360 Reports on Emerging Developments Involving Lake Law Firm, Brewer Client Sylvia Benito
December 5, 2025 – Law 360 reports today that following allegations by multiple creditors that the firm suffered from significant mismanagement — and just one week after creditors initiated involuntary Chapter 7 proceedings against it -- the Law Offices of Edward J. Lake (the Lake Law Firm) in New York filed for Chapter 11 bankruptcy.
In October, Brewer client Syliva Benito filed state court claims alleging Lake defrauded her out of more than $2.5 million by inducing her to loan the firm money under the guise of bridge financing and improperly mislabeling her investment in ERTC claims as loan.
In commenting on today’s developments, William A. Brewer III, partner at Brewer, Attorneys & Counselors and counsel to petitioning creditor Benito, stated:
“Lake Law’s responsive December 3 bankruptcy filing—which seeks to use creditor-advanced funds for payroll and a $30,000 monthly salary to Ed Lake—underscores the purpose of the involuntary bankruptcy filing. As the bankruptcy court noted, Lake Law’s filing is ‘the functional equivalent of an admission that relief is warranted.’ We look forward to the appointment of a trustee to ensure an orderly and equitable distribution to creditors.”
The matter now proceeds toward a December 9 hearing, where the court will evaluate whether the Chapter 11 case should continue and whether an interim trustee will be appointed to oversee the firm’s assets.
Read more: https://www.law360.com/articles/2418333/ny-law-firm-files-ch-11-after-hostile-takeover-allegations