[admin]

In the following To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. the Monmouth County Prosecutor, Luis A. Valentin, announced that on May 11, 2009, Gary Edelson, 48, formerly of Red Bank, N.J., appeared in Monmouth County Superior Court and pled guilty to the crime of second degree Misapplication of Entrusted Property. The charge resulted from an investigation which was conducted by the Monmouth County Prosecutor’s Office regarding funds that Edelson, an attorney, illegally retained in and dispersed from his attorney trust account.

The investigation revealed that Edelson, whose law practice was located in Red Bank, N.J., represented multiple clients in real estate transactions between August 2003 and November 2005. During the course of his representation of his clients in these transactions, Edelson deposited large sums of his clients’ money into his attorney trust account. An attorney trust account is an account used to temporarily hold client funds.

The investigation further revealed that instead of disbursing his clients’ funds in order to finalize the real estate transactions as Edelson was required to do, Edelson instead illegally retained and disposed of more than $300,000 which he was holding in trust. The investigation also revealed that Edelson used funds from his trust account to pay for personal expenses such as his rent, medical insurance, office expenses, and taxes, and that he improperly transferred funds from his trust account into his business account.

Attorney trust accounts are closely regulated by the New Jersey Supreme Court and specific guidelines for the use of these trust accounts are outlined in the New Jersey Rules of Court. Because money held in attorney trust accounts do not become the property of the attorney, any personal use of clients’ funds by the attorney is strictly prohibited. Additionally, attorneys must maintain trust accounts funds separately from any business or personal bank accounts.

In 2006, Edelson consented to his disbarment from the practice of law following an investigation into the use of his trust account by the New Jersey Office of Attorney Ethics.

Edelson entered his guilty plea before Monmouth County Superior Court Judge Anthony J. Mellaci, Jr. The guilty plea was entered pursuant to a negotiated plea agreement. In accordance with the terms of the plea agreement, the Monmouth County Prosecutor’s Office will recommend that Judge Mellaci sentence Edelson to a 7 year New Jersey State prison term. Judge Mellaci is scheduled to sentence Edelson on September 18, 2009.

The indictment against Edelson was returned on May 5, 2008. Edelson surrendered to authorities the following day and immediately posted bail in the amount of $30,000 with the ten percent option which set by the Monmouth County Superior Court Judge Bette E. Uhrmacher.

Monmouth County Prosecutor Luis A. Valentin stated, “As an attorney licensed to practice law in New Jersey, Edelson owed a fiduciary duty to his clients. Rather than executing that duty by representing his clients’ interests, Edelson illegally misapplied the money that was entrusted to him. The term of incarceration called for in the plea agreement is necessary to deter this type of criminal conduct.”

The case is assigned to Assistant Monmouth County Prosecutor Nicole Colucci. Edelson is represented by Richard Gilbert, Esquire, of Eatontown, N.J.


To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. - To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. - To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. - To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. - To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.