NJ Lawyers' Fund for Client Protection Releases First-Quarter Report; $353,335.47 Paid to Clients

Claimants can receive up to $400,000 if their claim is approved, and the fund can pay up to $1.5 million in claims against any one lawyer.

The New Jersey Lawyers' Fund for Client Protection (NJLFCP), funded by the state's lawyers and judges, has released its first-quarter report for 2023, announcing that it paid a total of $353,335.47 to clients for losses caused by 11 lawyers.

Established 54 years ago, the purpose of the fund is to pay on behalf of the honest majority of lawyers for the wrongdoing of the few who are suspended or disbarred for misappropriation. Throughout its history, the NJLFCP has paid claims against a total of 887 attorneys. Currently, 99,364 lawyers are licensed in New Jersey.

Operating under the authority of the Supreme Court pursuant to Court Rule 1:28, the NJLFCP is overseen by seven trustees appointed by the court. These trustees, consisting of five attorneys and two public members, serve staggered five-year terms without compensation. The trustees are responsible for considering clients' claims and awarding compensation when it is determined that the loss was caused by dishonest lawyer conduct, under fund rules. Cases involving legal malpractices and negligence are handled through civil court actions, while fee disputes are addressed through the district fee arbitration committees established by the Supreme Court.

To be eligible for compensation, the attorney against whom a claim is filed must have been a member of the bar and acting as either attorney or fiduciary at the time of the incident. Additionally, the attorney must have been disbarred or suspended from the bar or convicted of embezzlement or other misappropriation of property, unless deceased.

Claimants can receive up to $400,000 if their claim is approved, and the fund can pay up to $1.5 million in claims against any one lawyer. The Supreme Court can grant special permission to exceed the aggregate limit.

Claim forms can be found online or obtained by writing to the New Jersey Lawyers' Fund for Client Protection, Richard J. Hughes Justice Complex, P.O. Box 961, Trenton, NJ 08625-0961, or call 855-533-FUND (3863). There is no filing fee, and claimants assisted by practicing attorneys receive their representation free of charge. Fund Director Michael T. McCormick welcomes inquiries about the fund's purpose and operation.

The first-quarter claim awards and the status of each attorney under the Supreme Court discipline system can be found below.

List of First-Quarter Claim Awards and Status:

Name of Attorney: John Charles Allen * Law Practice: New Brunswick Cumulative Total: 26,000.00 Basis of Claim: Dishonest Retention of Unearned Retainer Date: Suspended 3/28/02, Previously Suspended 3/11/2022/7/6/2021 Additional Info: (2 claims) (27,500.00)(2)
Name of Attorney: Rosemarie Anderson * Law Practice: Hackensack Cumulative Total: 50,000.00 Basis of Claim: Dishonest Retention of Unearned Retainer Date: Disbarred 10/21/2021 Additional Info: (3 claims) (57,548.14)(4) Misappropriation of Trust Money R.E. (1 claim)
Name of Attorney: Lamouria Boyd, Dec'd Law Practice: Newark Cumulative Total: 3,326.00 Basis of Claim: Dishonest Retention of Unearned Retainer Date: Deceased 7/21/2022 Additional Info: (1 claim) (First-time claims paid)(3,326.00)(1)
Name of Attorney: Ira S. Karlstein, Dec'd Law Practice: Manalapan Cumulative Total: 4,500.00 Basis of Claim: Dishonest Retention of Unearned Retainer Date: Deceased 9/6/2022 Additional Info: (1 claim) (First-time claims paid)(4,500.00)(1)
Name of Attorney: Nabil Nadim Kassem Law Practice: Little Falls Cumulative Total: 21,500.00 Basis of Claim: Misappropriation of Sett.Monies/ Personal Injury Date: Suspended 3/13/2023 & 2/7/20 Additional Info: (1 claim) (First-time claims paid)(21,500.00)(1)
Name of Attorney: David J. Khawam * Law Practice: Audobon Cumulative Total: 230,359.47 Basis of Claim: Dishonest Retention of Unearned Retainer Date: Disbarred By Consent 3/2/2021 Additional Info: (1 claim) (236,359.47)(2)
Name of Attorney: Christopher M. Manganello * Law Practice: Pitman Cumulative Total: 2,000.00 Basis of Claim: Dishonest Retention of Unearned Retainer Date: Suspended 5/9/2022 Additional Info: (3 claims) (8,100.00)(3)
Name of Attorney: Steven H. Salami * Law Practice: Hazlet Cumulative Total: 10,000.00 Basis of Claim: Misappropriation of Deposit Money R.E. Date: Disbarred by Consent 12/9/2019, Suspended 10/17/2019 Additional Info: (66 claims) (1,550,660.93)(73) Misappropriation of Trust Money R.E. (1 claim) Misappropriation of Escrow Money/RE (5 claims) Alleged Misappropriation of Funds-Misc. (1 claim)
Name of Attorney: George R. Saponaro * Law Practice: Mount Holly Cumulative Total: 2,000.00 Basis of Claim: Dishonest Retention of Unearned Retainer Date: Suspended 1/6/2020 Additional Info: (2 claims) (4,000.00)(2)
Name of Attorney: Paul V. Strawinski, Dec'd Law Practice: Lyndhurst Cumulative Total: 3,250.00 Basis of Claim: Dishonest Retention of Unearned Retainer Date: Deceased 9/30/21 Additional Info: (1 claim) (First-time claims paid)(3,250.00)(1)
Name of Attorney: Steven N. Taieb, Dec'd Law Practice: Mt. Laurel Cumulative Total: 400.00 Basis of Claim: Dishonest Retention of Unearned Retainer Date: Deceased 9/29/2022 Additional Info: (1 claim)