On Friday, February 2, 2024, the Supreme Court of New Jersey censured attorney William J. Kohlhepp to be censured for violating ethics rules.
The case is entitled “In the Matter of William J. Kohlhepp,” with case number 088739.
The censure stems from a decision by the Disciplinary Review Board, which reviewed the record of Kohlhepp’s misconduct certified by the Office of Attorney Ethics. According to the Review Board’s decision from October 23, 2023, Kohlhepp violated Rules regarding concurrent conflicts of interest, improper business transactions with clients, recordkeeping requirements, and failure to cooperate with disciplinary authorities.
Specifically, Kohlhepp improperly borrowed $36,500 from his client Robert LaCorte while representing the estate of Norman Herman, of which LaCorte was the executor and sole beneficiary. Kohlhepp took 13 loans from the estate funds held in his attorney trust account between 2018 and 2019 without obtaining proper informed consent from LaCorte or adhering to safeguards required when attorneys enter business transactions with clients. He also failed to maintain accurate records of the loans and estate account ledgers.
Kohlhepp has been a member of the New Jersey bar since 1974. He has a prior disciplinary history, including a private reprimand in 1984 for a conflict of interest and a 2004 censure while serving as a municipal court judge for improperly attempting to intervene in a case involving his friend’s son.
In addition to censuring Kohlhepp, the Supreme Court order requires that within 60 days he submit proof to the Office of Attorney Ethics that he has disbursed any remaining funds in his trust account to clients or placed them with the Superior Court Trust Fund. This comes after the Review Board found Kohlhepp should have held over $48,000 for the Herman estate but only about $12,000 remained in his account.
Kohlhepp is currently ineligible to practice law due to failures to comply with financial and continuing legal education requirements. He has resided in a rehabilitation facility since 2019 due to physical health issues but maintained his desire to return to practicing law.
The Review Board considered Kohlhepp’s default in the disciplinary proceedings as an aggravating factor in recommending the censure penalty. While prior discipline was noted, the passage of time meant it did not enhance the discipline imposed.
According to Avvo, Mr. Kohlhepp is an attorney in Somerset, New Jersey. He obtained his law license in New Jersey in 1974.
A copy of the original filing can be found here.