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America January 15, 2025 3 mins read

Massachusetts Attorney Charged with Embezzling $2.5M, Cites Addiction and Failed Investment

America ı By Rihem Akkouche

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A Massachusetts attorney has been charged with embezzling $2.5 million from a couple and their businesses, with the attorney blaming his actions on an addiction to prostitutes and a failed investment in a Florida spa, according to federal prosecutors.

David Smerling, 74, of Lexington, allegedly engaged in multiple fraudulent schemes to defraud the unnamed couple. These schemes included overcharging himself for agreed-upon legal and bookkeeping services, transferring funds into his own account, and applying for unauthorized loans using the victims' names. A criminal complaint filed on Monday outlined how Smerling executed these fraudulent activities.

Federal authorities arrested Smerling on Tuesday, and he made an initial appearance in federal court, where a U.S. magistrate judge ordered his release with certain conditions. Neither a government representative nor Smerling’s attorney immediately provided a comment in response to requests for clarification.

The complaint describes how Smerling transferred money from the victims' accounts through an intermediary account owned by one of the victims before ultimately transferring the funds into his own account. In an effort to conceal his conduct, Smerling had the victims' bank statements sent to his home address, rather than to the victims' address, prosecutors said.

An FBI affidavit revealed that an employee of one of the victims became suspicious when Smerling was seen paying himself more than once a month and for larger sums than what had been agreed upon for his legal and bookkeeping services. The employee also expressed concern because Smerling constantly claimed that the businesses were struggling financially, despite the companies appearing to do well. However, the victim continued to trust Smerling, even after the employee raised these concerns.

The affidavit further described how Smerling attempted to involve the employee, referred to as "Employee 1" in the document, in a kickback scheme. In 2019, Smerling allegedly tried to recruit Employee 1 into taking more than their authorized salary by paying himself four times per month instead of the agreed-upon two. Smerling reportedly asked Employee 1 to give him half of the extra pay. However, Employee 1 declined to participate in the scheme.

Authorities allege that, in addition to the unauthorized payments, Smerling transferred at least $1.5 million to himself and attempted to conceal the theft by changing the mailing address for the victims' account to his own home address. Bank records from Citizens Bank showed that Smerling made two unsuccessful attempts to steal $350,000 from one of the victim's companies.

One of the victims, referred to as "Victim A" in the affidavit, reportedly confronted Smerling several times after discovering the unauthorized transfers. According to the affidavit, Smerling apologized and gave several excuses for his actions. He reportedly said that his daughter was getting married and claimed that his addiction to prostitutes and a failed investment in a Florida spa had caused his financial difficulties.

The government is represented by Kristen A. Kearney of the U.S. Attorney's Office for the District of Massachusetts, and Smerling is represented by Eliza Jimenez of the Federal Public Defender Office.

The case is U.S. v. Smerling, case number 1:25-mj-07008, in U.S. District Court for the District of Massachusetts.

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Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

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