In the New Jersey legal system, the “Knowing Misappropriation” of client funds is often referred to as the “capital offense” of attorney ethics. For Rutherford-based attorney Neal E. Brunson (Attorney No. 017911988), this violation—combined with a blatant disregard for prior court orders—has resulted in the ultimate sanction: permanent disbarment.
Effective April 8, 2025, the Supreme Court of New Jersey ordered that Brunson’s name be stricken from the roll of attorneys. This decisive action concludes a multi-year period of escalating disciplinary issues that left clients vulnerable and undermined the integrity of the bar.
The Core Misconduct: Knowing Misappropriation
The disbarment (Docket No. DRB 24-009) followed a formal complaint by the Office of Attorney Ethics (OAE) that detailed several egregious violations of the Rules of Professional Conduct (RPC).
1. Misuse of Estate and Escrow Funds
The investigation centered on Brunson’s handling of an insurance claim for a deceased individual’s estate.
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Unauthorized Withdrawals: After depositing over $235,000 in insurance proceeds into his trust account, Brunson made a series of unauthorized withdrawals for personal legal fees.
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Shortfall: By the time the client attempted to communicate with him, the trust account held thousands of dollars less than required, a violation of the “Wilson Rule” which mandates disbarment for the intentional use of client money.
2. Unauthorized Practice of Law (UPL)
Perhaps most troubling to the Court was Brunson’s conduct during a previous period of suspension. While he was temporarily barred from practicing in 2021, he:
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Accepted New Clients: He took on a client involving a class-action settlement.
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Concealed Status: He failed to disclose to the client or the court that his license was inactive.
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Financial Interference: He illegally advanced over $2,000 in financial assistance to a client, a direct breach of RPC 1.8(e).
A History of Non-Cooperation
The 2025 disbarment was the final straw in a history of disciplinary struggles. The Disciplinary Review Board noted that Brunson frequently ignored the very institutions designed to oversee his practice:
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July 2021: Temporarily suspended for failing to cooperate with an OAE investigation.
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March 2023: Suspended for three months for issuing a settlement check with insufficient funds and failing to comply with recordkeeping requirements.
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Ongoing Failure to Respond: During his final disbarment proceedings, Brunson failed to file a verified answer to the formal ethics complaint, leading to a “default” judgment against him.
Financial and Legal Ramifications
The Supreme Court’s order of disbarment is absolute and carries heavy administrative burdens:
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Asset Freeze: All funds in New Jersey financial institutions maintained by Neal E. Brunson were ordered to be restrained and transferred to the Superior Court Trust Fund.
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Prohibition of Practice: He is permanently enjoined from practicing law, giving legal advice, or sharing in any legal fees.
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Cost Reimbursement: He must reimburse the Disciplinary Oversight Committee for all administrative costs and expenses associated with his investigation.
Conclusion: Protecting the Integrity of the Bar
The disbarment of Neal E. Brunson reinforces a fundamental tenet of New Jersey law: an attorney’s duty to safeguard client funds is absolute. By misappropriating estate money and continuing to practice while suspended, Brunson broke the “sacred trust” between lawyer and client. For those seeking to verify the current standing of any New Jersey lawyer, the Supreme Court’s Disciplinary Search remains the definitive resource for public protection.
