Attorney Pleads Guilty to Embezzling Over $3 Million

News Summary

David Smerling, a 75-year-old attorney from Lexington, has admitted to committing serious financial crimes, including wire fraud, money laundering, and aggravated identity theft. He embezzled over $3 million from Massachusetts companies and family members with special needs. Smerling’s actions, characterized by the U.S. Attorney as just ‘the tip of the iceberg,’ have raised concerns about the vulnerability of elderly and disabled individuals to financial exploitation. A plea hearing date has yet to be set.

Lexington, MA – David Smerling, a 75-year-old attorney from Lexington, has entered a plea agreement in which he admits to committing multiple counts of serious financial crimes. The charges against him include four counts of wire fraud, two counts of money laundering, and one count of aggravated identity theft. The U.S. Attorney’s Office made this announcement, confirming that Smerling embezzled over $3 million from various Massachusetts companies as well as from two family members with special needs.

Previously indicted in January 2025 for embezzlement from a business partner, Smerling’s plea agreement expands upon his financial misdeeds, which U.S. Attorney Leah Foley described as only “the tip of the iceberg.” Evidence indicates that from January 2016 to May 2020, Smerling stole over $2.5 million from three Massachusetts companies where he had been employed as a bookkeeper.

To facilitate this embezzlement, Smerling allegedly executed a scheme where he transferred company funds into a separate bank account he controlled. He subsequently moved these funds into accounts held in his name. Smerling is charged with changing the mailing addresses on victims’ bank statements to direct them to his home, as well as refusing to share online banking passwords to further conceal his activities.

In a troubling extension of his fraudulent behavior, between May 2020 and August 2021, Smerling is alleged to have embezzled over $470,000 from a trust established for a relative with special needs. Acting in the role of trustee, he is accused of transferring trust funds to accounts he controlled, funneling some of that money into accounts belonging to his wife, and utilizing these funds for personal expenses. In an effort to keep the beneficiary from noticing the depletion of the trust, he made periodic “lulling payments” to them.

Additionally, from May 2023 to April 2025, Smerling allegedly embezzled more than $150,000 from a relative suffering from dementia, for whom he had financial power of attorney. His misconduct included transferring funds from the victim’s accounts into his own, using the victim’s credit card for personal purchases, and even taking out loans in the victim’s name. Smerling is said to have manipulated transaction details to financial institutions to prevent suspicion.

The penalties for wire fraud and money laundering could be severe, potentially including up to 20 years in prison, along with supervised release and considerable fines. The charge of aggravated identity theft carries a mandatory two-year prison sentence that must be served consecutively to any sentences handed down for wire fraud or money laundering.

Officials from the FBI’s Boston Division expressed concern over the impact of Smerling’s actions, particularly the fear they instill in families with elderly or vulnerable relatives. The FBI underscored the significant threat posed by such financial abuses, especially against individuals who may not be able to protect themselves.

As of now, a plea hearing date for Smerling has not been scheduled, leaving the final outcome of the case yet to be determined.

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