NOT THE SHARPEST KNIVES IN THE DRAWER: Court Buys Embezzler's “The Terrorists Made Me Do It” Defense
After investigating six charges of misappropriating client funds with dishonest or fraudulent intent against Manhattan personal injury attorney Frederick Salo, the Departmental Disciplinary Committee of the First Judicial Department recommended disbarment or a suspension of at least three year. While sustaining five of the six charges, The Appellate Division of the First Judicial Department dismissed the finding that Salo was acting dishonestly or fraudulently when he raided a client’s escrow account. Based on the testimony of a psychologist, the appellate court instead found his conduct to be caused by post-traumatic stress disorder he suffered following the Sept. 11, 2001, terror attacks, reports New York Law Journal:
"Given the uncontroverted expert evidence, we find that it has not been proven by a preponderance of the evidence that [Salo] had the venal intent required for a finding that he willfully and knowingly converted third-party funds," the panel ruled. …
Mental health experts hired by both Salo and the committee agreed that he suffered from post-traumatic stress disorder and depression due to an abusive childhood and the events of 9/11. Both a referee and a hearing panel cited Salo's post-9/11 mental condition as mitigating factors. …
Salo … maintained offices near the World Trade Center at 100 Church St. at the time of the terror attacks, according to the decision. Salo was not in the office at the time of the attacks, but had only limited access for many months after 9/11.
When he was given access during this period, police escorted him through 18 flights of stairs in the dark - there was no power - and he was given only a few minutes to collect what files had survived. His computer, which contained the electronic ledger for his escrow account, was destroyed.
In the months after, Salo developed an alcohol abuse problem, which lasted until he quit drinking in January 2003. In October 2002, he turned to a psychologist.
The Appellate Division, First Department approved a one-year suspension.
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