In a significant ruling, the Appellate Division of the Supreme Court of the State of New York has accepted the resignation of attorney Stephen Luke DiLorenzo, who has been disbarred after admitting to misappropriating client funds. This decision, made on August 27, 2026, directly impacts DiLorenzo's ability to practice law in New York and highlights the serious consequences of professional misconduct.
The court's ruling comes amid ongoing concerns about attorney ethics and client trust. The case underscores the importance of maintaining integrity within the legal profession, affecting not only DiLorenzo but also the clients he served and the broader legal community.
Stephen Luke DiLorenzo, who was admitted to the New York Bar on August 28, 1989, faced disciplinary proceedings initiated by the Attorney Grievance Committee for the First Judicial Department. The dispute arose from allegations that DiLorenzo misappropriated funds from clients during a real estate transaction. Specifically, he was accused of misappropriating $44,986.86 from a purchaser's down payment and $9,577.74 from his client's proceeds.
DiLorenzo's resignation was submitted in a motion dated April 1, 2026, and he acknowledged that he could not successfully defend against the allegations of misconduct. He stated in his affidavit that his resignation was voluntary and made with full awareness of the consequences, which included disbarment. The Attorney Grievance Committee did not oppose his resignation.
The court noted that DiLorenzo had made full restitution to the affected parties prior to the investigation by the Attorney Grievance Committee. However, he also consented to the court's jurisdiction regarding any future applications for restitution or reimbursement to the Lawyers' Fund for Client Protection.
In its ruling, the court stated, "The Court accepts respondent's resignation... and his name shall be stricken from the roll of attorneys and counselors-at-law in the State of New York, effective nunc pro tunc to March 31, 2026, the date of his affidavit of resignation." This means that DiLorenzo's disbarment is retroactively effective to the date he submitted his resignation.
The ruling was issued per curiam, meaning it was made by the court collectively rather than by a single judge. The decision was supported by Justices Peter H. Moulton, Barbara R. Kapnick, Martin Shulman, Bahaati E. Pitt-Burke, and John R. Higgitt.
This case serves as a reminder of the serious implications of misappropriating client funds. The ruling reinforces the standards of conduct expected from attorneys and the consequences of failing to adhere to those standards. DiLorenzo's actions not only harmed his clients but also tarnished the reputation of the legal profession.
Moving forward, this ruling sends a clear message to attorneys about the importance of ethical practice and the potential repercussions of misconduct. It may also influence how future cases of attorney misappropriation are handled, as the court has established a precedent for accepting resignations in such circumstances.
The disbarment of Stephen Luke DiLorenzo highlights the need for attorneys to maintain transparency and integrity in their dealings with clients. It also emphasizes the role of the Attorney Grievance Committee in overseeing the conduct of legal professionals in New York.
As for what’s next, DiLorenzo's disbarment is effective immediately, and he is barred from practicing law in any capacity. He must also comply with the rules governing disbarred attorneys. There is no indication in the court filing regarding any possibility of appeal or related cases pending at this time.