By: Richard L. Smith
NJ Attorney General Matthew J. Platkin announced the sentencing of John Dunlea, a former chief financial officer of a Morristown-based national law firm, who admitted to embezzling over $1.5 million from the firm and evading income tax payments to the state.
John Dunlea, 61, of Westfield, New Jersey, was sentenced on July 26, 2024, to five years in state prison by New Jersey Superior Court Judge Stephen J. Taylor at the Morris County Courthouse in Morristown.
NJ AG Platkin said Dunlea was also ordered to pay more than $1.5 million in restitution to McElroy, Deutsch, Mulvaney & Carpenter, LLP, where he was previously employed, and over $20,000 to the state.
Dunlea pleaded guilty on May 8, 2024, to two counts of theft by deception (2nd degree) and five counts of failure to pay taxes (3rd degree). He admitted to misappropriating $1,538,221 from the law firm by awarding himself unauthorized excess compensation.
Between January 2017 and December 2022, Dunlea paid himself $1,182,965 in unauthorized compensation and misled the firm into covering his personal credit card charges, including international and domestic flights, hotels, and restaurant outings for himself and his family, totaling approximately $355,256.
Additionally, Dunlea admitted to evading $22,568 in state income tax from 2018 to 2022.
“The defendant admitted to giving himself a staggering, unauthorized, and illegal seven-figure pay raise and treating himself and his family, at his employer’s expense, to travel, hotels, and meals,” said Attorney General Platkin.
“The sentence demonstrates the Division of Criminal Justice’s firm commitment to holding individuals accountable who exploit positions of trust to commit financial fraud.”
Legal Chief Pablo Quiñones of the Office of Securities Fraud and Financial Crimes Prosecutions added, “The defendant misused his position of power and trust to take advantage of his employer and the taxpayers of the state of New Jersey. This sentence underscores our commitment to ensuring that those who turn to deception and cheating to improperly enrich themselves will be held accountable.”
