The New Jersey Attorney General’s office has announced charges against John Dunlea, the former Chief Financial Officer of the McElroy Law Firm, for embezzling more than $1.5 million and evading New Jersey state income tax. Dunlea, 61, from Westfield, New Jersey, faces two counts of theft by deception (2nd degree) and five counts of failure to pay tax (3rd degree).
The charges stem from an investigation by the DCJ’s Office of Securities Fraud and Financial Crimes Prosecutions, with assistance from the New Jersey Division of Taxation-Office of Criminal Investigations. Allegations suggest that from 2017 to 2022, Dunlea misappropriated funds by awarding himself unauthorized compensation and covering personal expenses as business expenses, including international and domestic travel for himself and his family. Furthermore, Dunlea is accused of evading state income tax for the income derived from these schemes during the tax years 2018 to 2022.
Attorney General Platkin emphasized the state’s commitment to prosecuting fraudulent activities and tax evasion, stating the importance of holding individuals accountable for theft and tax evasion. Legal Chief Pablo Quiñones highlighted the betrayal of trust by Dunlea, who was a high-ranking executive at the law firm.
The case is being prosecuted by Deputy Attorney General Janet Bosi, under the supervision of Deputy Chief Adam Heck and Legal Chief Pablo Quiñones. While the charges are serious, they are currently accusations, and Dunlea is presumed innocent until proven guilty. If convicted, the charges could lead to significant prison time and fines, with second-degree crimes carrying up to ten years and third-degree crimes up to five years in state prison, alongside financial penalties.