Lawyer Suspended for Hiding Client’s Funds in Escrow Account

A lawyer who hid client funds in his escrow account was suspended from law practice for four years by the Supreme Court of New York, Appellate Division Mar. 21.

Despite several mitigating factors, the lawyer received a harsh sanction for his admitted “significant lapse in judgment.” The case is a cautionary tale that a lawyer’s hope that his unethical actions will help the client do the right thing may not help avoid disciplinary action.

Fredric H. Aaron represented Eric Aronson, who raised money for his various companies by soliciting investors. Aaron represented Aronson for about 1 1/2 years by helping ...