In a significant ruling on October 1, 2026, the Appellate Division of the Supreme Court of the State of New York disbarred attorney David Smerling for embezzling nearly $3 million from multiple companies and violating his fiduciary duties. This decision affects Smerling's ability to practice law in New York, marking a serious consequence for his criminal actions and misconduct. The ruling emphasizes the legal system's commitment to upholding ethical standards among attorneys.
The court's decision comes in response to a motion filed by the Attorney Grievance Committee for the First Judicial Department, which sought to impose reciprocal discipline following Smerling's disbarment in Massachusetts. Smerling's actions, which included embezzlement and misuse of trust funds, have raised serious concerns about the integrity of legal professionals.
Background
David Smerling was admitted to the New York Bar on March 29, 1976. Over the years, he served in various roles, including overseeing bookkeeping and financial management for several companies. However, between 2016 and 2020, Smerling engaged in a series of fraudulent activities that led to his downfall. He embezzled nearly $3 million from three companies by initiating unauthorized electronic transfers and diverting funds into a personal account, which he hid from scrutiny.
In addition to his embezzlement from companies, Smerling violated his fiduciary responsibilities as a trustee of a special needs trust for a relative. He misappropriated nearly half a million dollars from the trust and manipulated the account to conceal his theft. Furthermore, he exploited his position as a financial power of attorney for another relative diagnosed with dementia, diverting nearly $200,000 for personal use. His actions culminated in his arrest in January 2025, which led to a guilty plea in federal court.
The Ruling
The court ruled that Smerling's actions warranted disbarment, stating, "significant weight should be given to the sanction imposed by the jurisdiction where the misconduct occurred because the foreign jurisdiction has the greatest interest in fashioning sanctions for misconduct." The ruling, delivered by a panel of judges including Hon. Lizbeth González, emphasized the severity of Smerling's misconduct, which included multiple counts of wire fraud, money laundering, and aggravated identity theft.
In its decision, the court highlighted that Smerling did not report his conviction to the Attorney Grievance Committee, as required by law. The court found that he had waived his right to contest the facts of his misconduct in Massachusetts, making it clear that reciprocal discipline was appropriate. The judges noted, "Reciprocal discipline is warranted" due to the serious nature of Smerling's actions and his failure to provide any defenses against the motion for disbarment.
Impact
This ruling sets a strong precedent for the legal community in New York, reinforcing the importance of ethical conduct among attorneys. By disbarring Smerling, the court sends a clear message that embezzlement and violations of fiduciary duties will not be tolerated. The decision also illustrates the principle of reciprocal discipline, where an attorney's misconduct in one jurisdiction can lead to consequences in another.
The impact of this ruling extends beyond Smerling himself. It serves as a reminder to other legal professionals about the importance of maintaining ethical standards and the potential consequences of failing to do so. The court's decision aligns with previous cases where attorneys faced disbarment for similar misconduct, ensuring consistency in the enforcement of legal ethics.
What's Next
Following this ruling, Smerling is disbarred and his name has been removed from the roll of attorneys in New York. He is prohibited from practicing law in any capacity. Details regarding any potential appeals or related cases were not available in the court filing. However, Smerling's actions and the subsequent ruling will likely continue to resonate within the legal community.