On Wednesday, August 27, 2025, the New York Supreme Court, Appellate Division, Second Judicial Department suspended attorney Max William Spaeth from practicing law for two years due to multiple charges of professional misconduct.
The case is entitled “In the Matter of Max William Spaeth,” with case no. 2023-02619.
The disciplinary action stems from a formal proceeding initiated by the Grievance Committee for the Ninth Judicial District, which filed a notice of petition and a verified petition on March 3, 2023. The petition included five specific charges against Spaeth, all related to the management of his attorney escrow account at Chase Bank, titled “Spaeth & Counsel, LLC, Attorney Trust Account IOLA.”
The first charge alleged that Spaeth failed to maintain the required balance in his escrow account for a client matter over specified periods, resulting in a deficiency that indicated misappropriation of client funds.
The second charge accused Spaeth of commingling personal funds with client funds during a period between April 29 and June 30, 2020. Records showed approximately 52 instances in which he deposited personal funds totaling nearly $19,683 into the escrow account, which is against the rules governing attorney conduct.
The third charge involved improper disbursements from the escrow account. Between May 1 and July 31, 2020, Spaeth was reported to have made around 34 electronic fund transfers using Venmo and 26 transfers using Zelle, along with wire transfers that were unrelated to client matters. These transactions, which ranged from small amounts to larger withdrawals, constituted violations of the rules regarding the proper handling of escrow funds.
The fourth charge stated that Spaeth failed to maintain separate accounts for fiduciary funds and his personal/business funds. Between July 2 and July 31, 2020, he made approximately 32 deposits of personal funds into the escrow account and made numerous disbursements for personal expenses, further breaching the ethical requirements for attorneys.
Finally, the fifth charge asserted that Spaeth’s overall conduct adversely reflected on his fitness to practice law. The cumulative effect of the previous charges indicated a serious lapse in ethical judgment, violating Rule 8.4(h) of the Rules of Professional Conduct.
Following a hearing on January 23, 2024, the Special Referee sustained all five charges. The Grievance Committee subsequently moved to confirm the findings, which the court granted, leading to Spaeth’s suspension. He is not eligible to apply for reinstatement before March 1, 2027, pending compliance with specific conditions set by the court.
The Disposition states:
“It is ORDERED that the respondent, Max William Spaeth, is suspended from the practice of law for a period of two years, effective immediately, and continuing until further order of this Court.”
According to Avvo.com, Mr. Spaeth is an attorney in White Plains, New York. He attended the Pace University School of Law. He acquired his law license in New York in 2017.
A copy of the original filing can be found here.
