The legal profession demands unwavering honesty and an absolute duty of trust. When a veteran attorney and public servant violates that trust for personal gain, the consequences are swift, severe, and far-reaching. The case of Craig Sherman, a retired Florida lawyer and former Town Attorney for Bay Harbor Islands, is a deeply unsettling story of betrayal that culminated in a federal criminal conviction for a multi-million dollar investment fraud scheme.
The disciplinary action against Sherman is directly tied to his federal criminal case in the Southern District of Florida. For nearly seven years, from 2013 through 2020, Sherman used his reputation and professional standing to operate an elaborate scheme that defrauded his own clients and friends.
The Anatomy of the Fraud
Sherman’s scheme preyed on trust and promised high returns:
- The Pitch: Sherman solicited investments, primarily from friends and clients, claiming the money would be used as loans to finance lucrative real estate development projects—some planned, some already in progress—within the community of Bay Harbor Islands. He promised investors annual interest rates of between 6% and 8%.
- The Deception: Federal authorities uncovered that the investment opportunities were largely fabricated. Instead of channeling the funds into real estate, Sherman diverted the nearly $7 million he raised to finance his personal expenses and desperately sustain his struggling law firm.
- The Ponzi-Style Cover-Up: To keep the scheme afloat and prevent detection, Sherman engaged in classic Ponzi-style tactics, using money from new investors to make the promised interest payments to older investors. This created the illusion that the investments were legitimate and profitable, extending the life of the fraud for years.
The true nature of the scheme began to unravel when a client, who had wired millions to Sherman, became suspicious after interest payments ceased. The client discovered that one of the projects Sherman claimed to be funding hadn’t even been approved.
The Professional and Criminal Fallout
The disciplinary and criminal consequences for Sherman were definitive:
- Surrender of License (2019): Facing mounting civil lawsuits and the clear threat of a Florida Bar investigation, Sherman, at the age of 77, surrendered his law license. While he made no formal “admissions of wrongdoing” at the time, he conceded that there was a “factual predicate for disciplinary action,” effectively ending his four-decade career. The Florida Bar’s acceptance of the resignation is tantamount to disbarment.
- Guilty Plea (2023): Sherman pleaded guilty to two counts of federal wire fraud. His admission confirmed that he had knowingly and willfully defrauded his victims.
- Sentencing and Restitution: At his upcoming sentencing, Sherman faces a maximum of 20 years in federal prison for each count. Critically, he has been ordered to pay full restitution to his victims, though the recovery of the total $7 million defrauded will likely be a long and arduous process.
Conclusion: A Legacy Undone
The Craig Sherman case is a devastating illustration of how a lawyer’s greed can utterly dismantle a lifetime of professional achievement. As a former town attorney, Sherman was expected to be a pillar of his community and a trusted legal advisor. Instead, he exploited those relationships for massive personal financial benefit, committing a profound breach of his ethical and legal duties.
This case serves as a powerful cautionary tale: the privilege of practicing law is conditional on maintaining the highest levels of integrity. When a lawyer trades trust for fraud, the legal system will respond with its most severe penalties, stripping away their license and holding them criminally accountable for the devastating harm inflicted on their victims.