Five Years in Prison for Law Firm Embezzler from Westfield

WESTFIELD, NJ — Westfield resident John Dunlea, who embezzled more than $1.5 million from a law firm where he worked, was sentenced Friday to five years in prison, according to state Attorney General Matthew J. Platkin.

In sentencing Dunlea, 61, state Superior Court Judge Stephen Taylor also ordered that he pay back the money to McElroy, Deutsch, Mulvaney & Carpenter (MDMC), the Morristown-based, national law firm where Dunlea worked as chief financial officer. Additionally, Dunlea was ordered to pay more than $20,000 to the state as restitution for income taxes he evaded, said Platkin.

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ARCHIVE: Westfield Man Admits Stealing from Law Firm, Dodging Taxes

Dunlea pleaded guilty May 8 to an accusation charging him with two counts of second-degree theft by deception and five counts of third-degree failure to pay taxes. He admitted taking, in the form of unauthorized excess compensation, $1,538,221 from the law firm.

“Between January 2017 and December 2022, he paid himself unauthorized compensation in the amount of $1,182,965 and misled the firm into paying his personal credit card charges for international and domestic flights, hotels and restaurant outings for himself and his family, totaling approximately $355,256,” Platkin said.

The attorney general also said Dunlea admitted he evading paying more than $22,000 in state income tax between 2018 and 2022. The taxes were owned for money Dunlea gained through his credit card scheme, Platkin explained.

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“The defendant admitted to giving himself a staggering, unauthorized and illegal 7-figure pay raise, and treating himself and his family, at his employer’s expense, to travel, hotels and meals,” said the attorney general.

ARCHIVE: State: Westfield Man Lived Large on Money Embezzled from Law Firm

He said the sentencing of Dunlea “demonstrates the Division of Criminal Justice’s firm commitment to holding individuals accountable who exploit positions of trust to commit financial fraud.”

State Office of Securities Fraud and Financial Crimes Prosecutions Legal Chief Palbo Quiñones said Dunlea “misused his position of power and trust to take advantage of his employer and the taxpayers of the state,” adding that the man’s sentencing “underscores our commitment to ensuring that those who turn to deception and cheating to improperly enrich themselves will be held accountable.”

Dunlea and his wife, Nicole Alexander — who also worked at MDMC as its director of professional and business development — were sued by the law firm last year.

“Dunlea’s substantial and longstanding pattern of embezzlement, when viewed alongside the couple’s lavish lifestyle and matters of which Alexander had notice, led the Firm to believe that Alexander was aware of his misconduct,” the lawsuit states.

“For example, since 2016, the couple has lived in a million-dollar home they own together in Westfield …  The home has an estimated value of $1.3 million,” the lawsuit states. “The home was purchased with funds embezzled from the Firm … entitling MDMC to the imposition of a constructive trust over that property.”

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