A defunct law practice is suing its former chief financial officer, and his family, for more than $1.2 million he embezzled from the firm.
Gordon & Silber P.C., a Manhattan firm that specialized in medical malpractice litigation, accused the family of Arthur G. Cohen, 73, of Briarcliff Manor, of benefiting from the thefts.
“The spouse and children have been unjustly enriched by the goods and services they received as a result of Arthur Cohen’s fraudulent credit card use,” according to a complaint filed on Feb. 26 in Westchester Supreme Court.
Arthur Cohen is not in a position to easily defend his family. He is an inmate at Groveland Correctional Facility near Rochester, serving up to seven-and-a-half years for grand larceny and criminal tax fraud.
Cohen served as Gordon & Silber’s president, treasurer and CFO from 2014 to 2020, according to the complaint, and he was in charge of accounting and bookkeeping.
The complaint states that he directed the accounting office to pay company credit card charges for personal purchases, concealed the thefts by giving bookkeepers false ledger entries, submitted false expense records to get reimbursement checks, and secretly directed the accounting office to pay his full salary despite an agreement by partners to forgo their 2019 salaries.
Many of the diverted funds were allegedly used by his wife, Ellen, of Briarcliff Manor; son, Devin, of Newton Center, Massachusetts; daughter Jessica, of Millwood; and daughter Lindsay, of Larchmont.
Law firm funds paid for a $40,000 diamond encrusted Cartier watch, a $57,000 diamond ring, wedding expenses, travel and lodging, Broadway shows, wine and liquor, hair salons, pet care, landscaping, meals at restaurants, and more, according to court records.
Even if family members did not know that the goods and services were purchased with stolen funds, the complaint states, they should be held liable because they “kept their ill-gotten gains” even after Cohen admitted that he had used stolen funds for their personal benefit.
In 2020, firm partners became suspicious about Cohen’s actions and suspended him. He responded by filing a wrongful termination lawsuit. The firm filed counterclaims alleging that he had stolen more than $3 million.
This past August, a Manhattan Supreme Court judge granted summary judgment to the law firm, and a hearing was held on Jan. 29 to determine how much was stolen.
The firm says it expects the figure to be at least $1 million, not counting a criminal judgment for $1.2 million.
In October, Cohen pled guilty and confessed to stealing $1,200,721, in a plea deal with Manhattan District Attorney Alvin Bragg.
Cohen was imprisoned on Oct. 24. He could be released on parole as early as April 2026, or remain imprisoned up to April 2031.
