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Eric Sanders, who represents Miriam Carey's family, was arrested Tuesday over unpaid legal settlements.
The U.S. Second District Court of Appeals disagreed with artists' First Amendment lawsuit.
The mother of Noel Polanco said she will file a suit against the city Tuesday.
Xing Wu "Oliver" Pan and Jia "Jenny" Hou were found guilty of defrauding the city of matching funds.
A judge's ruling Tuesday against the practice could be the first in a string of challenges to the policy.
Ann Pettway, 50, is charged with stealing baby Carlina White from Harlem Hospital in 1987.
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