Crimes As Bank Director Results In Automatic Disbarment

A criminal conviction has resulted in automatic disbarment by the New York Appellate Division for the Second Judicial Department

The respondent, at the time the crime was committed, was a director of Park Avenue Bank and was found guilty by a jury of willfully conspiring to obtain a fraudulent loan by orchestrating the use of a sham borrower, providing false statements about the purpose of the loan, and providing false statements regarding the sham borrower’s finances. The respondent used his position as a director of Park Avenue Bank to ensure the loan received less scrutiny and personally referred the loan to allow it to receive more immediate attention. The respondent also used his position to push the loan application through to approval. The respondent’s actions caused the misapplication of money, funds, or property of the bank through which the respondent received a substantial personal benefit in the amount of $506,000.

Under the circumstances of this case, we conclude that the respondent’s conviction of embezzlement and misapplication of bank funds, in violation of 18 USC § 656, is essentially similar to the New York felony of abstraction or misappropriation of money, funds, or property, or misapplication of credit of private bankers or corporations to which the bank law is applicable, by an officer, director, trustee, employee, or agent thereof, in violation of Banking Law § 673. By virtue of his federal felony conviction, the respondent was automatically disbarred and ceased to be an attorney pursuant to Judiciary Law § 90(4)(a).

Accordingly, that branch of the Grievance Committee’s unopposed motion which is to strike the respondent’s name from the roll of attorneys and counselors-at-law, pursuant to Judiciary Law § 90(4), is granted to reflect the respondent’s disbarment as of July 11, 2023, and the motion is otherwise denied as academic.