In today’s New York Law Journal   Christine Simmons has a truly shocking article about a law firm discovering that one of its attorneys was sending false bills to the client.  OK, this by itself is not so shocking, but the complaint also claims that the attorney created fake orders, forged the signature of a US District Judge, and fabricated expenses.  That’s shocking.  More so, the attorney is a Nassau County legislator and is running for the  NY State.

"Davidoff Hutcher & Citron is suing one of its former attorneys, Nassau County Legislator David Denenberg, claiming he sent hundreds of fake invoices to a client and stole hundreds of thousands of dollars from the firm (See Complaint). Denenberg, a Democrat, had been running for a seat in the state Senate, using the campaign slogan, "Nobody Works Harder." After news of the suit broke Tuesday, Denenberg withdrew from the race. Denenberg led Davidoff Hutcher’s intellectual property practice in the firm’s Long Island office. Davidoff Hutcher claimed its client, Systemax, a retailer of electronics products, paid more than $2 million to satisfy the false bills. The law firm said it discovered the scheme and informed Systemax. After conducting an investigation, the firm agreed to "make full restitution" to Systemax, according to the lawsuit filed Tuesday in Manhattan Supreme Court, Davidoff Hutcher Citron v. Denenberg, 159304-2014."

"Davidoff Hutcher said it was unaware of the conduct and believed the bills represented legitimate charges. Denenberg also improperly billed and collected funds for false business expenses, the firm claims. Specifically, the suit said, Davidoff Hutcher paid him for "numerous false vouchers"  seeking reimbursement of expenses he claimed were incurred on behalf of clients. "By this conduct, defendant Denenberg stole hundreds of thousands of additional dollars directly from DHC based on his false representations that these were client expenses for which he was entitled to reimbursement," the lawsuit said. The firm claims it offered Denenberg an opportunity to explain his actions, but he refused. According to the suit, Denenberg was advised that the firm had  discovered two files for the client involving misconduct and asked if there were any others.
"Denenberg, admitting his guilt, replied ‘No.’ Unfortunately, this too was a lie, as there were many more than two files involved," according to the lawsuit, which lists six Systemax matters that involved fake invoices. The firm claims Denenberg showed no remorse, and when told he would be fired, replied "You’re going to make me go? For this?" The firm said Denenberg went to "great lengths to perpetuate the fraud," by preparing a fake order from federal court that purported to dismiss claims against the client, then signing the order in the name of a federal judge. In another case, according to the suit, Denenberg created a fake stipulated order of dismissal with prejudice of claims between a plaintiff and the client, and the order indicated it had been signed by a different district court judge.

So, why is this not a case of deceit under Judiciary Law 487?