Managing client funds is one of the most sensitive responsibilities in legal practice. When mishandled whether through negligence or intent it can lead to serious disciplinary consequences. The case of New Jersey attorney David Ryan Nussey offers a cautionary example of how poor recordkeeping, escrow account errors, and repeated ethics violations can escalate into censure and suspension. This post explores what went wrong, the rules he violated, and what other attorneys can learn from his mistakes.
In re David Ryan Nussey (Docket No. DRB 21‑065, Decision Date: Nov 8, 2021)
Nussey maintained both an attorney trust account (ATA) and a business account (ABA) at TD Bank. He alone handled financial operations and recordkeeping.
In early 2016, a random audit flagged multiple deficiencies: poor reconciliations, improperly designated accounts, insufficient client-specific ledgers. Nussey claimed he corrected them.
In August 2018, the ATA was overdrawn by $3,552.55 stemming from a client matter (Auerbach). Nussey mis‑issued a disbursement check due to a failure to deduct a prior fee.
The overdraft triggered multiple demand audits. Despite repeated requests, Nussey delayed or failed to provide reconciliations and proper records until months later. Over four audits (Mar–Jul 2019), deficiencies persisted.
Recordkeeping failures included: lack of monthly three‑way reconciliations, missing receipts and disbursement journals, incomplete client ledgers, improper check and deposit descriptions, online transfers between ATA and ABA, and commingling personal funds. He admitted that the overdraft caused an invasion of client funds in the Belli matter though he corrected the shortfall the next day.
He also delayed cooperating with the Office of Attorney Ethics (OAE), in violation of the Rpc requiring four separate demand audits to secure compliance.
The DRB recommended and imposed a public censure, reflecting progressive discipline due to Nussey’s prior ethics history.
The Conditions included:
1.Completion of two OAE-approved recordkeeping courses within 90 days;
2.Submission of quarterly reconciliations of his attorney accounts to the OAE for two years;
3.Reimbursement of administrative costs and expenses to the Disciplinary Oversight Committee.
Subsequent NJ Supreme Court Action July 2025 Suspension
On July 7, 2025, the New Jersey Supreme Court issued an order suspending Nussey for three months,
effective August 6, 2025, following the DRB’s censure recommendation and consistent pattern of client neglect.This suspension addressed a separate matter: Nussey’s lack of diligence,in failing to secure letters of administration for a client’s estate and transfer real estate title leading to delayed access to insurance proceeds.
That case involved a client named Russell Kolins (file opened in Nov 2019), where Nussey failed to act from March 2021 through January 2022. A successor attorney resolved the matter quickly.
The July 2025 suspension represents Nussey’s fourth formal disciplinary action in five years:
2020: reprimand for gross neglect, lack of diligence, misrepresentation;
2021: DRB censure for negligent misappropriation;
2023: censure for failure to invoice and cooperate;
2025: suspension for client neglect / diligence failure.
Although Nussey’s matter involved negligent misappropriation rather than knowing theft, the case is instructive for lawyers in handling client trust accounts:
. Overdrafts even brief or innocent are serious violations;
. Multiple recordkeeping failures compound the ethical breach and jeopardize client funds;
. Unresponsiveness to ethics authorities worsens outcomes;
. Prior history exacerbates discipline, as seen in Nussey’s escalating sanctions.
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