Tuesday, April 16, 2024
HomeBeyond ParsippanyCFO Accused of Embezzling Funds and Tax Evasion

CFO Accused of Embezzling Funds and Tax Evasion

MORRIS COUNTY — John Dunlea, formerly the Chief Financial Officer of McElroy, Deutsch, Mulvaney & Carpenter, LLP, a national law firm with offices in Morristown and throughout New Jersey and other states, faces charges of embezzling over $1.5 million from the firm and evading payment of state income tax. Attorney General Matthew J. Platkin and the Division of Criminal Justice (DCJ) confirmed.

According to a criminal complaint, Dunlea, 61, of Westfield, is accused of theft by deception (2nd degree) and five counts of failure to pay tax (3rd degree) concerning the alleged fraud.

The charges stem from an investigation by 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 between 2017 and 2022, Dunlea diverted funds from the McElroy Law Firm, including unauthorized compensation totaling $1,182,965, and falsely claimed $355,256 in credit card expenses as business costs. These expenses purportedly covered personal expenditures such as flights, hotels, and dining for Dunlea and his family. Additionally, Dunlea is accused of evading state income tax for tax years 2018 to 2022 related to income from the credit card scheme.

Attorney General Platkin emphasized the state’s commitment to prosecuting fraud and tax evasion, ensuring accountability for those who exploit New Jersey businesses and evading taxes owed to the state.

Deputy Attorney General Janet Bosi is leading the prosecution for the Office of Securities Fraud and Financial Crimes Prosecutions under the supervision of Deputy Chief Adam Heck and Legal Chief Pablo Quiñones.

While the charges are allegations, and Dunlea is presumed innocent until proven guilty, second-degree crimes carry a maximum sentence of ten years in state prison and a fine of up to $150,000, while third-degree crimes carry a maximum sentence of five years in state prison and a fine of up to $15,000. The potential sentences are provided for informational purposes, as determined by a judge.

spot_img
spot_img
Frank L. Cahill
Frank L. Cahill
Publisher of Parsippany Focus since 1989 and Morris Focus since 2019, both covering a wide range of events. Mr. Cahill serves as the Executive Board Member of the Parsippany Area Chamber of Commerce, President of Kiwanis Club of Tri-Town and Chairman of Parsippany-Troy Hills Economic Development Advisory Board.
Recent Articles
- Advertisment -spot_img
- Advertisment -spot_img
- Advertisment -spot_img
- Advertisment -spot_img
- Advertisment -spot_img

Local News

- Advertisment -spot_img
- Advertisment -spot_img

Click on image to read magazine

Parsippany Focus Magazinespot_img
Translate »