On Wednesday, August 13, 2025, the Supreme Court of the State of New York, Appellate Division, Second Judicial Department suspended attorney Steven W. Stutman from practicing law for six months due to professional misconduct involving the mishandling of client funds. The suspension, effective September 12, 2025, stems from a disciplinary proceeding initiated by the Grievance Committee for the Tenth Judicial District.
The case is entitled “In the Matter of Steven W. Stutman,” with case number 2022-06169.
The court’s decision followed a petition filed on June 9, 2023, by the Grievance Committee, which outlined four charges of professional misconduct against Stutman. The charges centered on Stutman’s management of his attorney escrow account at TD Bank. Between September 2018 and December 2019, Stutman repeatedly overdisbursed funds from this account for multiple client matters, leading to shortages ranging from $25 to $2,724.03.
On December 19, 2019, the escrow account balance was $42,018.76, while Stutman was required to maintain $43,346.30 for 13 clients, resulting in a shortfall of $1,327.54.
Further, between December 20 and December 24, 2019, Stutman issued three checks totaling $13,950 related to a client matter, despite no corresponding funds being deposited in the TD Bank escrow account for that case. This caused payments to be drawn from other clients’ fiduciary funds. By December 26, 2019, the account balance was $18,913.76, against a required $34,191.30 for 11 clients, reflecting a $15,277.54 shortage.
The charges alleged violations of the Rules of Professional Conduct, including misappropriation of fiduciary funds, improper titling of the escrow account, and failure to reconcile the account, which adversely reflected on Stutman’s fitness as a lawyer.
A hearing was held on January 11, 2024, before Special Referee David I. Ferber, who sustained all four charges in a report received on March 25, 2024. The Grievance Committee moved to confirm the report, and Stutman, through his counsel, did not oppose the motion but requested a lesser penalty, such as a reprimand, probation, or public censure.
During the hearing, Stutman testified that the errors resulted from a mistaken deposit into a separate Capital One escrow account instead of the TD Bank account, causing a deficit when a check was issued. He acknowledged additional errors dating back to 2018, which he attributed to accounting mistakes. Stutman expressed remorse, closed both escrow accounts, and implemented new software and staff oversight to monitor his current single escrow account, which he reconciles twice monthly.
The court considered Stutman’s prior disciplinary history, including a 2014 admonition for similar misconduct, a 2020 letter of advisement, a 2009 letter of caution, and a 2008 admonition. Despite remedial measures and character evidence presented, the court deemed a six-month suspension appropriate.
Stutman is barred from practicing law until at least February 11, 2026, and must comply with rules governing suspended attorneys, including refraining from legal practice and returning any secure pass issued by the Office of Court Administration.
According to Avvo, Mr. Stutman is a foreclosure lawyer in Melville, NY. He acquired his law license in New York in 1974.
A copy of the original filing can be found here.
