David Smerling, a 74-year-old Lexington lawyer, has been charged with wire fraud for embezzling over $2.5 million. Authorities allege he funneled money from three companies he was hired to manage between January 2016 and May 2020, according to the U.S. Attorney's Office.
Smerling's scheme involved moving stolen company funds through different accounts to hide their origin, using an intermediary account owned by a victim company to confuse the trail. He also had bank statements sent to his home instead of the businesses' addresses to avoid detection, as reported by the U.S. Attorney's Office.
Smerling is charged with wire fraud, which could lead to up to 20 years in prison, three years of supervised release, and a fine up to $250,000 or double the amount embezzled. He has been released with conditions after his arrest and maintains his innocence. The case is being pursued by Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit, with the final outcome depending on the evidence and sentencing guidelines, as stated by the U.S. Attorney's Office.
