Matter of Troodler
156 A.D.3d 40
| N.Y. App. Div. | 2017Background
- Nachman Aaron Troodler, admitted to the NY bar in 2000, pleaded guilty in federal court (S.D.N.Y.) on March 7, 2017 to conspiracy to commit securities and wire fraud (18 U.S.C. § 371) and securities fraud (15 U.S.C. §§ 78j(b), 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2).
- At plea allocution he admitted that from ~2008–June 2015 he served as executive director of the Ramapo Local Development Corporation (RLDC) and as Assistant Town Attorney for the Town of Ramapo, and that he and others defrauded investors about municipal bonds by making false statements and omitting material facts.
- The respondent’s counsel timely notified the Appellate Division of the federal felony conviction, as required by Judiciary Law § 90(4)(c).
- The Grievance Committee moved to strike Troodler’s name from the roll of attorneys under Judiciary Law § 90(4)(b) based on the federal felony conviction.
- Troodler submitted an affidavit acknowledging failures, expressing remorse, and requesting that the Court grant the Committee’s motion.
- The court granted the motion and ordered Troodler disbarred effective March 7, 2017, directing compliance with rules for disbarred attorneys and prohibiting legal practice or holding out as an attorney.
Issues
| Issue | Grievance Committee's Argument | Troodler's Argument | Held |
|---|---|---|---|
| Whether Troodler’s federal securities fraud conviction is essentially similar to a New York felony, thus triggering automatic disbarment under Judiciary Law § 90(4) | Federal securities fraud is essentially similar to NY fraudulent securities transactions (G.B.L. § 352-c) and therefore qualifies as a felony for § 90(4) purposes | Troodler did not contest essential similarity; he acknowledged misconduct and sought relief consistent with disbarment | The court held the federal conviction is essentially similar to the NY felony and disbarment under § 90(4) is required |
| Whether disbarment should be effective as of the date of the federal conviction | Automatic disbarment is mandated upon conviction of a qualifying felony under Judiciary Law § 90(4)(a) | Troodler requested that the Court grant the Committee’s motion (no opposition to effectiveness date) | The court ordered Troodler disbarred effective March 7, 2017 (date of plea/conviction) |
Key Cases Cited
- Matter of Margiotta, 60 N.Y.2d 147 (on essential similarity standard for out-of-state felonies)
- Matter of Woghin, 64 A.D.3d 5 (consideration of plea allocution in determining essential similarity)
- Matter of Goldfarb, 96 A.D.3d 12 (federal securities fraud treated as essentially similar to NY fraudulent securities transactions)
- Matter of Alarcon, 54 A.D.3d 101 (treatment of securities offenses vis-à-vis disciplinary consequences)
- Matter of Collotta, 54 A.D.3d 98 (similar)
- Matter of Drescher, 303 A.D.2d 54 (similar)