Source: Office of United States Attorneys
BOSTON – An attorney working as a bookkeeper for three Massachusetts companies has been arrested and charged with embezzling at least $2.5 million from the companies.
David Smerling, 74, of Lexington, was charged by complaint with wire fraud. He was arrested yesterday and released on conditions.
According to court documents, between January 2016 and May 2020, Smerling allegedly embezzled from the companies by transferring funds from the companies’ bank accounts to accounts in his name. To conceal his scheme, Smerling allegedly transferred some funds through an intermediary account owned by one of the victims before transferring funds to his accounts. The complaint also alleges that Smerling caused bank statements to be mailed to his home address, rather than the victims’ addresses, to further hide his conduct.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.