MORRIS COUNTY — Attorney General Matthew J. Platkin confirmed the sentencing of a Union County man who was formerly the chief financial officer of a Morristown-based national law firm after he admitted embezzling over $1.5 million from the firm and evading payment of income taxes owed to the State.
John Dunlea, 61, Westfield, was sentenced on July 26 to five years in state prison by New Jersey Superior Court Judge Stephen J. Taylor, presiding at the Morris County Courthouse in Morristown. He was also ordered to pay more than $1.5 million to McElroy, Deutsch, Mulvaney & Carpenter, LLP, the firm where he was previously employed, and to pay over $20,000 to the State as restitution.
Dunlea had pleaded guilty on 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.
In entering the plea, Dunlea admitted misappropriating $1,538,221 from the law firm by paying himself unauthorized excess compensation. Between January 2017 and December 2022, he paid himself unauthorized compensation for $1,182,965. He 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.
Dunlea also admitted to evading the payment of income tax totaling $22,568 to the State for the tax years 2018 through 2022 for income derived from the credit card scheme.
“The defendant admitted to giving himself a staggering, unauthorized, and illegal seven-figure pay raise and treating himself and his family, at his employer’s expense, to travel, hotels, and meals,” Platkin said. “Today’s sentence demonstrates the Division of Criminal Justice’s firm commitment to holding individuals accountable who exploit positions of trust to commit financial fraud.”
“The defendant misused his position of power and trust to take advantage of his employer and the taxpayers of New Jersey,” said Legal Chief Pablo Quiñones of the Office of Securities Fraud and Financial Crimes Prosecutions. “This sentence underscores our commitment to ensuring that those who turn to deception and cheating to enrich themselves improperly will be held accountable.”
