- Court
- New York Supreme Court, Appellate Division, Second Department
- Case
- Matter of Silverman
- Date
- June 3, 2026
- Slip Op. No.
- 2026 NY Slip Op 03444
Background
The Grievance Committee for the Tenth Judicial District commenced disciplinary proceedings against respondent Mark D. Silverman, admitted to the bar in 1985. Silverman was a partner in Silverman and Taylor, PLLC, and served as a signatory on the firm’s attorney escrow account at Citibank. The verified petition alleged four charges of misconduct.
Between January 2017 and April 2019, five disbursements totaling $25,777.35 were made from the escrow account without sufficient correlating funds on deposit. Additionally, as of April 30, 2021, the account was short $21,182.30 against required balances for 21 client matters, and by December 10, 2021, the shortage had grown to $30,366.41. The four charges alleged: (1) misappropriation of fiduciary funds in violation of Rule 1.15(a) of the Rules of Professional Conduct; (2) failure to make accurate entries of financial transactions; (3) failure to maintain proper records and reconcile the escrow account; and (4) related record-keeping failures. A Special Referee sustained all four charges after a joint hearing with the respondent’s law partner.
Holding
The Appellate Division, Second Department, confirmed the Special Referee’s report sustaining all four charges. The respondent did not challenge the factual findings, having admitted to all allegations, but requested leniency in the form of a sanction no greater than public censure. The Court imposed discipline upon the respondent based on the sustained charges, addressing the escrow account shortages and record-keeping deficiencies that persisted over approximately four years.
Takeaways
This disciplinary proceeding underscores the strict obligations attorneys have regarding escrow account management under the Rules of Professional Conduct. Even relatively modest shortages—here, ranging from approximately $21,000 to $30,000 against required balances exceeding $600,000—constitute misappropriation when funds are disbursed without sufficient correlating deposits. The companion obligations to maintain accurate records, create contemporaneous ledger entries, and regularly reconcile escrow accounts are independently enforceable requirements whose violation constitutes separate charges of misconduct.
Why It Matters
All attorneys who maintain escrow or trust accounts should take note of this proceeding. The charges demonstrate that both partners in a two-attorney firm can be held independently responsible for escrow account deficiencies, regardless of which partner directed specific disbursements. The record-keeping requirements are not merely aspirational but carry disciplinary consequences when violated. Firms of all sizes should implement regular reconciliation procedures and maintain contemporaneous transaction records to avoid similar charges. The joint hearing with the respondent’s law partner (see companion case, Matter of Taylor) illustrates that systemic firm-wide failures in escrow management can result in parallel disciplinary proceedings against all responsible partners.