A Lexington attorney, David Smerling, age 75, has conceded to a guilty plea on multiple charges including wire fraud, money laundering, and aggravated identity theft. Details emerging from the U.S. Attorney's Office reveal an elaborate scheme defrauding companies and vulnerable family members.
Initially indicted in January of 2025 for embezzling from a business partner, further investigation uncovered that Smerling's manipulations extended to the abuse of trust funds and the exploitation of family members battling conditions such as special needs and dementia. According to a statement from U.S. Attorney Leah B. Foley to the Department of Justice, "The alleged multi-million-dollar embezzlement that Mr. Smerling was originally charged with was, unfortunately, just the tip of the iceberg."
FBI Acting Special Agent in Charge Kimberly Milka conveyed the unsettling nature of the betrayal, saying to the Department of Justice, "For anyone with elderly and vulnerable loved ones, these are frightening allegations." Smerling's fraudulent activities are believed to have started in January 2016 and continued until August 2021. He reportedly embezzled over \$2.5 million from three Massachusetts companies by diverting funds to accounts he controlled, and additionally, misappropriated more than \$470,000 from a special needs trust.
Court filings allege that the deceit didn't end with strangers’ accounts or distant business ventures, rather, it hit close to home—allegedly pilfering over $150,000 from a relative with dementia. Smerling supposedly concealed these actions through misrepresentation, and taking out loans in the relative's name, actions meant to veil the truth behind numbers on a screen.
The wire fraud charge carries a potential sentence of up to 20 years in prison among other penalties, while the money laundering count could also result in a similar prison term. Aggravated identity theft is slated to add a mandatory two-year consecutive sentence. Sentencing will be determined based on U.S. Sentencing Guidelines, though it's clear that the damage done to trust and financial stability for the victims extends beyond what any court can quantify. As with all cases, Smerling remains innocent until proven guilty beyond a reasonable doubt in court, as emphasized by federal authorities.
