On Wednesday, June 26, 2024, the Supreme Court of New Jersey issued an order reprimanding attorney Joseph A. Rutigliano for violating the rules of professional conduct.
The case is entitled “In the Matter of Joseph A. Rutigliano,” with case no. 089265.
The charges cited New Jersey Rules of Professional Conduct 1.15(a), 1.15(d) and 5.3(a)(b), which states:
Negligently misappropriating entrusted client funds.
Failing to comply with the record-keeping requirements of Rule1:21-6.
Failing to supervise a nonlawyer assistant.
The Rules of Professional Conduct can be found here.
The matter began in September 2022 when Rutigliano’s attorney trust account was reported overdrawn by $396 to the Office of Attorney Ethics (OAE). In response to the report, the OAE began investigating Rutigliano’s financial records and bookkeeping practices. Through its investigation, the OAE discovered several issues with Rutigliano’s recordkeeping and supervision of non-attorney staff.
Specifically, Rutigliano allowed his wife Irena to manage the finances of his small law firm without proper oversight or bookkeeping training. Between January 2020 and September 2022, Irena initiated over 20 unauthorized electronic transfers from Rutigliano’s attorney trust account to his business account, totaling nearly $32,000. She also issued 13 trust account checks made payable to Rutigliano without his authorization. This activity resulted in the improper invasion of nearly 30 client funds.
Additionally, Rutigliano failed to comply with required recordkeeping under New Jersey Court Rule 1:21-6. He did not maintain proper receipts or disbursement journals, conduct mandatory monthly reconciliations, or ensure proper designation and processing of checks. This lack of oversight prevented Rutigliano from discovering Irena’s misconduct for over two years.
In February 2023, Rutigliano met with the OAE and admitted his failures to supervise Irena and comply with accounting rules, in violation of RPC 1.15(a), 1.15(d), 5.3(a), and 5.3(b). He immediately took corrective actions, including opening a new trust account, completing all required recordkeeping, reimbursing client funds, and ensuring Irena no longer had access to or involvement in his firm’s finances or accounts.
In March 2024, the Disciplinary Review Board considered the matter. While acknowledging Rutigliano’s full cooperation and remediation, it determined his conduct warranted a reprimand.
On June 26, 2024, the New Jersey Supreme Court issued an order formally reprimanding Rutigliano and requiring him to reimburse administrative costs.
According to avvo.com, Mr. Rutigliano is a real estate attorney in North Bergen, New Jersey. He attended the New York Law School, graduating in 2001. He acquired his law license in New Jersey in the same year.
A copy of the original filing can be found here.