East Hampton Attorney Barred From Law for Two Years

David E. Eagan, an East Hampton lawyer and president of the Wainscott School Board, has been barred from practicing law for two years for failing to file proper New York State tax returns for 2010.

Following a July 27 decision by a grievance committee seated in the New York State Supreme Court Appellate Division in Brooklyn Mr. Eagan will not be able to act in any role in the legal profession as of Aug. 26.

The original felony charge of criminal tax fraud was eventually reduced to a misdemeanor charge of attempted tax fraud.

During his allocution in Suffolk County Court on May 13, 2014, as part of his guilty plea, Mr. Eagan admitted to having withheld over $171,930 from the state. As part of the plea agreement, he paid the state $495,145, for back taxes, penalties, and interest. In return, he was sentenced to an unconditional discharge.

The grievance committee said that Mr. Eagan claimed that his failure to pay his taxes "resulted from an actual inability to pay and was not motivated by dishonesty or a desire to accumulate wealth."

The five justices making up the committee were not moved by this claim, writing in their decision, "While the respondent did suffer a sudden reversal of fortune when he lost his partnership position at a law firm, the respondent attempted to maintain his lifestyle, including running a horse farm, which not only was not profitable, but required him to use personal income to help cover the expenses required to keep the farm running. The respondent made a calculated decision to pay his federal taxes, but not his state taxes, based on his stated belief that the Internal Revenue Service was the more aggressive tax entity. Although the respondent claimed that he was putting aside savings to pay his overdue taxes, and, indeed, had saved enough money, the respondent continued his pattern of avoidance until he learned that he was under investigation by the taxing authorities."

After 18 months, Mr. Eagan will be allowed to apply for permission to practice law again, provided as there are no violations before them.

Mr. Eagan is the president of the Wainscott School Board and ran unopposed to keep his seat in 2014, despite having been charged with tax fraud earlier that year.

Mr. Eagan and his partner Brian E. Matthews were not available for comment on Friday.