On Thursday, February 20, 2025, the Supreme Court of New Jersey suspended attorney William C. Kelly from practicing law for two years. The decision followed a disciplinary process that revealed Kelly had engaged in unethical conduct, including misappropriating funds from his law firm and misrepresenting his actions over several years. The court’s order mandates Kelly’s compliance with rules governing suspended attorneys and requires him to reimburse the Disciplinary Oversight Committee for costs incurred during the investigation.

The case is entitled “In the Matter of William C. Kelly,” with case no. 090086.

Kelly faced disciplinary action stemming from his tenure as a non-equity partner at Tompkins, McGuire, Wachenfeld & Barry, LLP. From 2008 to 2021, he worked at the firm’s offices in Newark and later in Roseland, New Jersey, earning an annual salary that peaked at approximately $160,000 in 2017 and 2018. However, firm-wide salary reductions in 2019 and 2020 lowered his earnings to $143,000 and then $137,000, respectively, before his termination in March 2021.

The Supreme Court’s ruling came after the Disciplinary Review Board reviewed a stipulation Kelly entered into with the Office of Attorney Ethics on June 27, 2024. In the agreement, Kelly admitted to violating two Rules of Professional Conduct: RPC 1.15(a), which prohibits lawyers from commingling client or third-party funds with their own, and RPC 8.4(c), which bars conduct involving dishonesty, fraud, deceit, or misrepresentation. His violations involved performing legal work outside the firm’s knowledge, billing clients directly, and keeping the payments, totaling $11,415, for personal use.

The misconduct spanned seven matters between 2013 and 2019, including representing clients like Walter Pardo, Yeshiva Insurance Agency, and BHB Pest Elimination LLC. For instance, in March 2013, Kelly billed Pardo $2,590 for work on a franchise sale, using firm letterhead but directing payment to himself. Similarly, in 2018 and 2019, he invoiced clients for services ranging from $675 to $2,362.50, concealing the work from his firm. Additional instances involved using firm resources, such as letterhead and email, to mislead clients and third parties into believing he acted with the firm’s authority.

Kelly’s actions came to light in February 2021 after he suffered a seizure at work, leading to hospitalization and treatment for alcoholism. While he was unavailable, an outside client contacted the firm, exposing his unauthorized work. On March 15, 2021, firm partners confronted Kelly, who admitted his wrongdoing. The firm terminated him the following day and reported the matter to the ethics committee on March 24, 2021. The Office of Attorney Ethics then launched an investigation, uncovering eight invoices and other documents tied to Kelly’s misconduct.

During the disciplinary process, Kelly acknowledged his actions through counsel in October 2021, estimating the outside work involved five or six matters totaling $6,000 to $7,000. Later, the firm provided evidence showing the actual amount was $11,415 across seven matters. Kelly cited personal challenges as context, including a 2017 divorce after a 23-year marriage, financial obligations for four children—one with special needs—and struggles with alcoholism since 2011. He noted relapses in 2014 and 2017, linking them to marital and economic pressures, though he did not use these as a defense.

The Disciplinary Review Board, in a decision dated December 11, 2024, recommended a three-year suspension after arguments on September 19, 2024. The board found Kelly’s misappropriation of firm funds and deceitful conduct warranted significant discipline but cited mitigating factors, such as his lack of prior discipline, cooperation with authorities, and community service. These included roles as treasurer for his town’s mayor, a recreation committee board member, and a volunteer with his local high school marching band. The board rejected a proposed two-year suspended suspension, deeming a full suspension necessary to protect the public and uphold confidence in the legal profession.

The Supreme Court, however, imposed a two-year suspension, a reduction from the board’s recommendation. Chief Justice Stuart Rabner signed the order, which also mandates Kelly to submit an affidavit of compliance under Rule 1:20-20. Failure to do so could delay his reinstatement by up to six months, violate additional ethics rules, or lead to contempt proceedings.

The Disposition states:

“It is ORDERED that William C. Kelly is suspended for a period of two years, and until further order of the Court, effective March 23, 2025.”

According to the filing, Mr. Kelly acquired his law license in New Jersey in 2004.

A copy of the original filing can be found here.