An attorney from Lexington has been indicted by a federal grand jury for allegedly embezzling over $2.5 million from three Massachusetts companies. David Smerling, 74, faces three counts of wire fraud and two counts of money laundering following his initial charge on January 13, 2025.
The indictment claims that between January 2016 and May 2020, Smerling transferred funds to a bank account he controlled before moving the money to accounts in his own name. He is also accused of changing the mailing address on victims' bank statements to his home and withholding online banking passwords.
Wire fraud charges carry potential penalties of up to 20 years in prison, three years of supervised release, and fines up to $250,000 or twice the gross gain or loss. Money laundering charges have similar prison terms but with fines up to $500,000 or twice the transaction's value.
United States Attorney Leah B. Foley and Jodi Cohen, Special Agent in Charge of the FBI Boston Division, announced the indictment. Assistant U.S. Attorney Kristen A. Kearney is handling prosecution.
It is important to note that these are allegations and Smerling is presumed innocent until proven guilty beyond a reasonable doubt.