Lyndhurst Lawyer Sentenced to 15 Years in Prison for Stealing $4 Million in Real Estate Closing Funds to Gamble In Atlantic City

TRENTON, NJ – June 19, 2009 – (RealEstateRama) – Attorney General Anne Milgram announced that a Lyndhurst lawyer was sentenced today for stealing approximately $4 million entrusted to him for real estate closings, which he used to gamble in Atlantic City.

According to Criminal Justice Director Deborah L. Gramiccioni, Michael P. Rumore, 50, who ran his law practice from the basement of his Lyndhurst home, was ordered to serve 15 years in state prison and to pay $6,263,989 in restitution by Superior Court Judge Harry G. Carroll in Bergen County. Rumore pleaded guilty on Jan. 2 to first-degree money laundering and second-degree theft by failure to make required disposition of property received.

“Rather than upholding the law and the interests of his clients, as he was sworn to do as an attorney, this defendant stole $4 million in real estate closing funds which he used to gamble,” said Attorney General Milgram. “We will continue to aggressively prosecute white collar crime.”

Rumore was hired as an attorney and settlement agent for real estate purchasers. Between April 16, 2007 and August 13, 2008, he received approximately $4 million into his attorney trust account from various mortgage companies. He had a duty to disburse the funds for closings and use them to pay balances on existing mortgages and other associated costs and fees. In pleading guilty, Rumore admitted that he instead transferred the funds into his personal and business accounts and used them to gamble at casinos in Atlantic City, primarily on slot machines.

Deputy Attorney General Francine Ehrenberg prosecuted the case and handled the sentencing hearing for the Division of Criminal Justice Major Crimes Bureau. Detective John Neggia conducted the investigation for the Major Crimes Bureau.

Based on his conduct, Rumore surrendered his license to practice law in the state and was disbarred by the Office of Attorney Ethics in September 2008. Attorney General Milgram thanked the Office of Attorney Ethics of the New Jersey Judiciary for its assistance in the case.

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For Further Information:
Peter Aseltine
609-292-4791