Lexington attorney charged with embezzling $2.5m from companies

A Lexington attorney was arrested Tuesday after he allegedly embezzled at least $2.5 million from three Massachusetts companies where he worked as a bookkeeper, according to court documents.

David Smerling, 74, appeared Tuesday in US District Court in Boston on one count of wire fraud but did not enter a plea, records show.

Smerling claimed to have an “addiction to prostitutes,” according to an affidavit filed in court. He was released later that day on conditions, including that he “participate in mental health treatment, which may include addiction counseling,” legal filings said.

Between January 2016 and May 2020, Smerling allegedly embezzled from the companies by transferring funds from their bank accounts to accounts in his name, according to a press release from US Attorney Joshua S. Levy’s office.

Smerling allegedly transferred some funds through an intermediary account owned by one of his victims to conceal his misdeeds. He also allegedly caused the victims’ bank statements to be mailed to his home address, the press release said.

Smerling’s alleged victims include his spouse and a business associate of his “for more than two decades,” according to an affidavit filed in court.

The three companies have only been identified as Company 1, Company 2, and Company 3, according to the affidavit.

The affidavit also states that when Smerling’s associate allegedly confronted him after learning about two unauthorized transfers, he apologized and made excuses, “including that Smerling’s daughter was getting married, that Smerling had an addiction to prostitutes, and that Smerling had invested in a spa in Florida that did not do well.”

The wire fraud charge could result in 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, according to the press release.

Since his admission to the Massachusetts bar in 1975, Smerling has no record of public discipline, according to the Board of Bar Overseers’ online database.

Smerling’s next court date is scheduled for Feb. 5, court records show.