Professional accountability is the bedrock of the legal system, particularly regarding the handling of client funds. For John Michael Falzone Jr. (Attorney No. 025311984), a general practitioner based in Red Bank and Colonia, New Jersey, significant recordkeeping deficiencies and the commingling of funds have led to a formal suspension from the bar.
Effective July 3, 2025, the Supreme Court of New Jersey ordered that Falzone be suspended from the practice of law for three months and until further order of the Court.
The Core Misconduct: Trust Account Mismanagement
The disciplinary case (DRB 24-228) arose from a random compliance audit by the Office of Attorney Ethics (OAE). The audit uncovered a pattern of financial mismanagement that violated several New Jersey Rules of Professional Conduct (RPC):
1. Commingling and Stale Funds
Falzone was found to have violated RPC 1.15(a) by commingling personal and client funds. Specifically, he allowed earned legal fees to remain in his attorney trust account (ATA) for more than eight months without negotiating the checks, effectively mixing his own money with that of his clients.
2. Recordkeeping Failures
The investigation revealed a widespread failure to comply with mandatory recordkeeping rules (Rule 1:21-6). Key issues included:
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Failure to perform and maintain three-way reconciliations for his trust account.
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Allowing over $400,000 in inactive client balances to languish in his trust account for years without proper disbursement or identification.
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Missing individual client ledger cards and descriptive receipts/disbursement journals.
3. Non-Cooperation with Authorities
The Court noted that Falzone violated RPC 8.1(b) by failing to cooperate fully with the OAE. For more than a year following the initial audit, he failed to produce all requested financial records and provided only a portion of the required documentation.
Professional History and Prior Discipline
John Michael Falzone Jr. has been a member of the New Jersey Bar since 1984, graduating from Brooklyn Law School. While he practiced for many decades without issue, his recent history includes escalating disciplinary actions:
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2012 (Censure): His first major disciplinary action involved negligent misappropriation of client funds. In that case, the Disciplinary Review Board found that he failed to supervise his wife, who acted as his bookkeeper and had stolen nearly $280,000 from the firm’s trust account.
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2024 (Reprimand): Just one year before his suspension, Falzone received a public reprimand for continued recordkeeping infractions and failures to promptly disburse funds to entitled parties in real estate matters.
Requirements for Reinstatement
The Supreme Court has set strict conditions that Falzone must meet before he can return to legal practice:
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Professional Accountant: Within 45 days of the order, he must retain a certified accountant to bring his records into full compliance.
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Restitution to Trust Fund: He must remit any unidentified or unclaimed funds to the Superior Court Trust Fund.
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Mandatory Education: He must complete a trust and business accounting course approved by the OAE.
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Quarterly Monitoring: Upon potential reinstatement, he will be required to submit monthly three-way reconciliations to the OAE on a quarterly basis for a period of two years.
Conclusion: The High Standard of Fiduciary Duty
The suspension of John Michael Falzone Jr. serves as a reminder that years of experience do not waive the requirement for meticulous financial oversight. For legal professionals, the New Jersey Supreme Court Order reinforces that trust account management is not merely an administrative task, but a core ethical obligation. For the public, these disciplinary measures ensure that only those capable of safeguarding client property are permitted to hold a law license.
