Below are summaries of recent disciplinary decisions from the New York Appellate Divisions, involving serious ethical violations resulting in disbarment. These cases underscore the courts’ position that intentional misappropriation of client funds, deceitful conduct, and disregard for the disciplinary process warrant the profession’s most severe sanction.
Appellate Division, First Department – Matter of Grant, 212 A.D.3d 38 (2022)
Disbarment for Wire Fraud Scheme, Misappropriation, and Continued Unauthorized Practice
Disbarment was imposed following federal convictions for conspiracy to commit wire fraud and wire fraud. Over a five-year period, the respondent engaged in an advance-fee scheme involving fraudulent standby letters of credit. Serving as an escrow agent, the respondent released funds to co-conspirators in breach of fiduciary duties and misappropriated over $300,000 in client monies.
The court noted not only the severity of the financial misconduct but also the respondent’s failure to report the conviction, non-cooperation with the Attorney Grievance Committee, and continued unauthorized practice while suspended. Disbarment was deemed appropriate given the absence of “extremely unusual mitigating circumstances,” in accordance with longstanding precedent.
Appellate Division, Fourth Department – Matter of Ciaccio, 233 A.D.3d 25 (2024)
Disbarment for Forged Deeds, False Filings, and Systematic Deceit
Disbarment followed findings that the respondent knowingly notarized forged quitclaim deeds, created and filed fraudulent legal documents, and misrepresented material facts in court proceedings. The respondent’s client sought to unlawfully transfer and sell properties belonging to an incapacitated relative, with the respondent playing an instrumental role in facilitating the fraud.
Claims of coercion and physical threats were found to be not credible, lacking any corroboration. The court emphasized the respondent’s prolonged deceit, use of false instruments, and efforts to involve other attorneys and laypersons in the scheme as aggravating factors. The misconduct was deemed to have seriously undermined the administration of justice.
Appellate Division, Second Department – Matter of Katz, 235 A.D.3d 44 (2025)
Disbarment for Escrow Misuse, False Accounting, and Failure to Remediate
The court ordered disbarment after sustaining numerous charges related to misuse of escrow accounts, misappropriation of client funds, and personal use of trust monies. The respondent disbursed over $330,000 without authorization, failed to maintain adequate records, and could not account for more than $460,000 in deposits and disbursements.
The respondent also misrepresented the purpose of a $130,000 “loan,” falsely claiming it was made to a client when in fact it was used to cover escrow shortfalls. The court cited a history of prior escrow-related discipline, lack of remorse, and ongoing fiduciary violations as warranting disbarment, despite mitigation arguments based on personal hardship.