On Thursday, November 7, 2024, the New York Supreme Court, Appellate Division, First Judicial Department issued a ruling regarding attorney Jeffrey L. Liddle, imposing a two-year suspension from practicing law. This decision stemmed from disciplinary proceedings initiated by the Attorney Grievance Committee for the First Judicial Department, which accused Liddle of serious misconduct related to the misuse of his law firm’s attorney escrow account.
The case is entitled “In the Matter of Jeffrey L. Liddle,” with case no. 2021-04460.
Liddle faced six charges alleging improper handling of his escrow account. The charges included allegations that he utilized the account as a personal and business account, improperly withdrew cash, and failed to maintain necessary bookkeeping records. Specifically, the court found that he violated several rules of professional conduct, including those prohibiting dishonesty and improper handling of client funds.
The disciplinary process began in December 2021 when the Attorney Grievance Committee served Liddle with the allegations. In response, Liddle denied the charges, asserting that his actions were not intended to defraud creditors and that he had merely been trying to keep his law practice viable. During the proceedings, a referee was appointed to hear the case, ultimately determining that five of the six charges were substantiated while one charge was dismissed.
The referee’s findings indicated that Liddle had knowingly misused the escrow account, engaging in conduct that involved dishonesty and fraud. Despite Liddle’s claims that there was no intent to deceive and that no client funds were misappropriated, the committee’s investigation revealed significant discrepancies in his account management. In 2015, Liddle’s law firm began experiencing severe financial difficulties, which escalated to legal judgments against him and his partners, compelling him to resort to using the escrow account for operational expenses.
The court’s opinion highlighted that Liddle’s actions were not isolated; he had made numerous ATM withdrawals and issued checks to cash from the escrow account, which violated established rules for the handling of such accounts. The referee’s initial recommendation was for a censure and a one-year suspension; however, the New York Court found this sanction inadequate given the severity of Liddle’s misconduct and decided on a two-year suspension instead.
In addition to the suspension, the court ordered that Liddle cease practicing law in any capacity during this period and comply with specific regulations governing suspended attorneys. This ruling emphasizes the court’s commitment to uphold the integrity of the legal profession, particularly in cases involving financial misconduct.
According to avvo.com, Mr. Liddle is an arbitration attorney in New York, New York. He attended the New York University School of Law. He acquired his law license in New York in 1977.
A copy of the original filing can be found here.
