Stephen Girdwood faces disbarment for draining $500,000 in escrow funds
Lebanon attorney Stephen Girdwood faces potential disbarment after an investigation by New Hampshire’s Attorney Discipline Office revealed he drained nearly $500,000 in escrow funds intended for a client’s divorce settlement. The funds, which belonged to Keith and Athena Nicholson from the sale of their family home, were funneled into an Orlando sports and music complex and personal accounts, leaving less than a thousand dollars in the trust account.
Disbarment Proceedings at Concord Probate Court
On September 22, Concord Probate Court held a hearing on Girdwood’s fitness to continue practicing law in the state. In a unanimous decision, a four-member hearing panel ruled that the evidence supporting multiple misconduct allegations brought by the discipline office in January was clear and convincing. Girdwood, through his attorney, called no witnesses and invoked his Fifth Amendment rights during the proceedings.
Chief disciplinary counsel at the Attorney Discipline Office stated that the hearing panel has 60 days from the September 22 hearing to issue a recommendation on sanctioning. That recommendation will move to the professional conduct committee for review before heading to the New Hampshire Supreme Court. The attorney discipline office noted that only the Supreme Court can issue a final order of disbarment, a process that could take a few months. Girdwood was already placed on interim suspension in New Hampshire in January.
Girdwood Manages Escrow Funds from Nicholson Divorce
The financial dispute originated from divorce proceedings in the 2nd Circuit Court-Lebanon Family Division beginning in May 2022, where Keith and Athena Nicholson agreed to sell their marital home and hold $487,000 in escrow. Girdwood, representing Athena Nicholson, acted as the escrow agent. In January 2025, a final default divorce decree awarded Keith Nicholson 60% of the proceeds, amounting to $292,000, and Athena Nicholson 40%, or $195,000.
According to bank records reviewed by the Attorney Discipline Office, Girdwood’s trust account held about $641,000 in October 2022, which included the Nicholsons’ money and $150,000 held for another client, Richard Balagur. Investigations showed that in April 2023, Girdwood made an unauthorized international wire transfer of $300,320 to HSBC Bank Hong Kong. The transfer included $200,000 of escrowed funds from the Nicholsons and $100,000 from another client, Richard Compton. The initial wire was canceled and redirected to a Merrill Lynch account owned by Bruce Weissman, president of an investment company called Frozen Lake Sports and Entertainment.
Compton and Weissman told investigators that Frozen Lake was formed to build a multimillion-dollar sports and music complex in the Orlando area. Girdwood later confessed to Lebanon police that the escrowed funds were ultimately lost to an investor in Singapore. Police referred the case to the FBI, though spokesperson Kristen Setera stated that the FBI Boston Field Office cannot confirm or deny the existence of an investigation.
Bankruptcy and Financial Liabilities
Beyond the frozen lake investments, bank records reviewed by the discipline office showed Girdwood transferred more than $130,000 from the trust account into his own account between June 2023 and November 2025. He also deposited $57,000 in unearned retainers directly into his business account and submitted false Trust Account Compliance certificates.
Bankruptcy Court in New Hampshire in May, claiming liabilities of $1.2 million, assets of $560,000, and more than 30 creditors. The bankruptcy petition lists potentially dischargeable debts that include the Nicholsons’ missing escrow funds.