Former Monmouth County Attorney Took $130K From Dead Client’s Estate, Prosecutors Say

SPRING LAKE HEIGHTS, NJ — A former Monmouth County attorney has been criminally charged with misappropriating over $130,000 from the estate of a dead client over the course of nearly seven years, Monmouth County Prosecutor Raymond Santiago said.

Kathleen Cehelsky, 60, of Spring Lake Heights, has been charged with misapplication of entrusted property, false uttering, and forgery, Santiago said.

Investigation into Cehelsky’s activities began last May following the receipt of information from the NJ Office of Attorney Ethics, which had conducted a preliminary investigation of its own that resulted in Cehelsky being disbarred, officials said.

The prosecutor's office investigation revealed that shortly after the death of her client in 2014 and continuing into 2021, Cehelsky, at various times, illegally transferred sums of money (ranging from several thousand dollars to over $56,000) from the client’s estate fund into personal accounts she controlled, Santiago said.

The total amount of misappropriated funds was over $130,000, according to prosecutors.

In doing so, prosecutors said Cehelsky kept 10 rightful beneficiaries of the funds from receiving their inheritance, though none had granted Cehelsky permission to withdraw any money.

Investigation further revealed that after making these transfers, Cehelsky altered her bank statements to conceal the misappropriation of funds, Santiago said. She has since returned approximately two-thirds of the funds to the estate fund.

Cehelsky was served the charges against her earlier this week and released on her own recognizance pending a first appearance in Monmouth County Superior Court, which has been tentatively scheduled for 9 a.m. on Tuesday, June 24.