On Thursday, March 20, 2025, the Supreme Court of New Jersey censured attorney Charly Gayden for multiple ethics violations stemming from her handling of client funds and poor recordkeeping practices. The decision followed a review by the Disciplinary Review Board, which determined that Gayden’s actions warranted discipline after she violated several Rules of Professional Conduct (RPC).

The case is entitled “In the Matter of Charly Gayden,” with case no. 090383.

The charges cited New Jersey Rules of Professional Conduct 1.4(b), 1.15(a)(b)(c), and 1.15(d).

The case primarily involved Gayden’s representation of Cupertino Garcia in a divorce matter that began in 2010. Over the years, Garcia accumulated over $64,700 in unpaid legal fees, leading to multiple retainer agreements with Gayden.

In 2019, an arbitrator awarded Garcia $523,223.65, paid in installments by his ex-wife between February 2020 and June 2021. Gayden deposited these funds into her attorney trust account and, between February 2020 and February 2022, withdrew $216,500 for her legal fees without providing Garcia with billing statements or an accounting, despite his repeated requests. Garcia received $148,698.30 of his share in October 2024, following an ethics grievance he filed in January 2022.

An investigation by the Office of Attorney Ethics (OAE) revealed additional issues. A January 2024 audit of Gayden’s financial records from 2020 to 2024 uncovered deficiencies, including commingling personal funds with client money, failing to resolve inactive account balances, and issuing a $100 check in 2020 from her trust account for a client, Malcolm Quigley, when no funds were held for him, causing a temporary shortage. Gayden corrected this by depositing personal funds in November 2021. She also held inactive balances for five other clients, totaling $13,110.76, which she resolved in early 2024 by disbursing earned fees to her firm and locating a beneficiary in an estate matter.

The Disciplinary Review Board found Gayden violated RPC 1.4(b) for not keeping Garcia informed, RPC 1.15(a) for negligent misappropriation and commingling, RPC 1.15(b) for delays in disbursing funds, RPC 1.15(c) for not segregating disputed funds, and RPC 1.15(d) for recordkeeping failures.

The Supreme Court’s order requires Gayden to attend a trust and business course, submit quarterly reconciliations for two years, and reimburse the Disciplinary Oversight Committee for costs. As of the ruling, $163,224.20 remains in her trust account from the Garcia matter, with Gayden required to distribute it or initiate legal action within 30 days.

The Disposition states:

“It is ORDERED that Charly Gayden is hereby censured, and it is further ORDERED that the respondent shall (1) attend a trust and business course offered by the Office of Attorney Ethics on a date certain to be scheduled by the Office of Attorney Ethics and (2) submit quarterly reconciliations to the Office of Attorney Ethics that comply with Rule 1:21-6 for a period of two years.”

According to avvo.com, Ms. Gayden is a contracts and agreements attorney in New Brunswick, New Jersey. She acquired her law license in New Jersey in 1998.

A copy of the original filing can be found here.