Former CFO Charged With Embezzling $1.5M From Morristown Law Firm: AG

MORRISTOWN, NJ — Officials said the former Chief Financial Officer of a national law firm based in Morristown has been charged with embezzling more than $1.5 million from the firm, as well as tax evasion.

On Thursday, Attorney General Matthew J. Platkin and the Division of Criminal Justice (DCJ) announced charges against John Dunlea of Westfield. The 61-year-old is the former CFO of McElroy, Deutsch, Mulvaney & Carpenter, LLP (the “McElroy Law Firm”), and is accused of paying himself more than $1 million in unauthorized compensation, and misrepresenting $355,000 in personal expenses.

Officials charged him by criminal complaint with two counts of theft by deception (second-degree) and five counts of failure to pay tax (third-degree) in connection with the alleged fraud.

Between 2017 and 2022, authorities allege that Dunlea misappropriated funds from the McElroy Law Firm, by paying himself unauthorized compensation totaling $1,182,96.

Additionally, Dunlea allegedly had the law firm pay credit card expenses totaling $355,256, claiming they were business expenses — when, in fact, they were personal expenses, including for international and domestic airline flights, hotels, and restaurants for himself and his family, according to authorities.

Additionally, it is alleged that Dunlea evaded paying State income tax during tax years 2018 to 2022 for income derived from the credit card scheme.

The charges are the result of an investigation by DCJ’s Office of Securities Fraud and Financial Crimes Prosecutions with the help of the New Jersey Division of Taxation-Office of Criminal Investigations.

"As alleged, this case reinforces our commitment to ensuring that fraud and tax cheating does not go unpunished in New Jersey," said Platkin. "We will vigorously investigate and prosecute fraudulent schemes such as this to hold accountable people who would steal from New Jersey businesses and evade taxes owed to the State."

Dunlea faces a sentence of up to 10 years in state prison and a fine of up to $150,000 on second-degree crimes, while third-degree crimes carry a sentence of up to five years in state prison and a fine of up to $15,000.

"Dunlea was a trusted, high-level executive at a national law firm, and he allegedly abused that trust for years by stealing more than $1.5 million from his employer," said Legal Chief Pablo Quiñones. "This investigation and prosecution should place potential white-collar fraudsters on notice that our office will seek to hold them accountable for taking advantage of businesses that call New Jersey home."

Dunlea is represented by Ricardo Dolano Jr. of Gibbons P.C.

Patch's Alexis Tarrazi contributed to this report.