Lawyers’ Fund for Client Protection Awards Nearly $127,000 in 13 Claims

The Trustees of the New Jersey Lawyers’ Fund for Client Protection returned $126,815.03 in client trust money stolen by 10 New Jersey lawyers in 13 claims between April and June 2025.  

In the Second Quarter of 2025, nine of the thirteen awards arose from the dishonest retention of unearned retainers. In these cases, retained lawyers were paid a fee but failed to perform some or all of the services they had agreed to complete.  

Claims also were approved for the misappropriation of escrow, trust, and settlement funds relating to real estate matters.

The largest claim paid in this quarter was $57,500. In that case, the claimants entrusted their real estate deposit with their attorney, who had placed the money in a trust account, but when it came time to complete the real estate transaction, the attorney had misappropriated part of the deposit. The attorney has since consented to disbarment from the practice of law. The Trustees agreed to return the partial deposit that was stolen from the claimants.

The Fund was created by the New Jersey State Bar Association in 1961 and, at the Bar’s request, was expanded by the Supreme Court in 1969 to cover all New Jersey attorneys. Trustees, who are appointed by the Supreme Court of New Jersey, use monies contributed by New Jersey’s attorneys to reimburse victimized clients. Just one-half of one percent of the State’s lawyers ever become the subjects of approved claims before the Fund.  

There are 99,387 lawyers admitted to practice in New Jersey. In its 56-year history, the Fund has paid 4,959 claims against 911 New Jersey attorneys for a total amount of $99,740,833.53. The Fund requires repayment by respondents as well as other culpable parties and to date has recovered $27,332,452.27.

Court Rule 1:28 defines the Fund’s jurisdiction. A claimant can receive up to $400,000 if the claim is approved, and the Fund can pay up to $1.5 million in claims against any one lawyer, although the Supreme Court can allow the Fund to exceed the $1.5 million aggregate limit. For a claim to be compensable, it must be filed against a member of the New Jersey bar who was acting as an attorney or fiduciary at the time of the alleged incident. Unless deceased, the attorney must have been disbarred, suspended from the bar, or convicted of embezzlement or other misappropriation of property. Cases involving legal malpractice, negligence, or fee disputes are not compensable by the Fund.

Claim forms can be found online at https://www.njcourts.gov/public/get-help/lfcp or by writing to the New Jersey Lawyers’ Fund for Client Protection, Richard J. Hughes Justice Complex, PO Box 961, Trenton, NJ 08625, or by calling 855-533-FUND (3863).  There is no filing fee and claimants assisted in their claims by practicing attorneys receive this assistance free of charge.  The Fund welcomes inquiries about its mission and procedures.

Attached is the Second Quarter 2025 list of claims paid with the status of each respondent attorney under the Supreme Court disciplinary system.