Legislator pleads guilty to stealing more than $2M from former client

January 22, 2015 Brooklyn Daily Eagle

Joanna Seybert, photo by Gabriela Reardon

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David Denenberg, a practicing New York attorney and Nassau County Legislator, pleaded guilty today to defrauding a former client of more than $2 million. The plea was entered before U.S. District Judge Joanna Seybert, the Brooklyn Daily Eagle has learned.

According to court filings and statements made in court at the time he entered the plea, between November 2006 and June 2014, Denenberg was a partner in the Garden City law firm Davidoff Hutcher & Citron LLP (DHC), formerly Davidoff Malito & Hutcher LLP (DMH).

During that time period, Denenberg sent fraudulent bills to a client for legal services that he never rendered. The client, a corporation based in Port Washington, N.Y., relied on Denenberg’s false billings and paid DHC/DHM $2,265,004.46.

During the same time period, Denenberg also sent fraudulent expense bills to the client for purported expenses incurred in furtherance of his legal representation, which expenses were never incurred, totaling $126,071.43. In all, the client paid DHC/DHM $2,342,607.64 for legal service never rendered and expenses never incurred.

“Denenberg used his license to practice law as a license to steal, billing for phantom work to steal real money from a client who trusted him,” said U.S. Attorney for the Eastern District Loretta Lynch. “The defendant has admitted his criminal conduct and will now face the consequences.”

Denenberg faces up to 20 years in prison and $250,000. He has already made full restitution to the former client.

-Information provided by U.S. Attorney for the Eastern District