Suspended Franklin Lakes Lawyer Misapplied More Than $500,000: Prosecutor

FRANKLIN LAKES, N.J. — A borough lawyer is accused of misapplying more than $500,000 and continuing to practice law while his license was suspended, Gurbir S. Grewal, Bergen County's acting prosecutor, said in a news release.

The prosecutor's office White Collar Crimes Unit investigated Jay I. Lazerowtiz, 58, after people complained and the New Jersey Office of Attorney Ethics received information about him, Grewal said.

Lazerowtiz's law license was suspended Jan. 27 and his attorney trust account was frozen after he failed to comply with attorney ethics regulations and continued to practice law, the prosecutor said.

Lazerowtiz continued to receive money in trust and allegedly placed it into regular checking accounts and misapplied entrusted funds by moving and utilizing funds outside the terms of the established escrow agreements, Grewal said.

The funds lost to date are more than $500,000, Grewal said.

A warrant was issued for Lazerowtiz's arrest Monday and he was arrested Friday, Grewal said.

Lazerowtiz was charged with unauthorized practice of law and two counts of misapplication of entrusted property with a value greater than $75,000.

Bergen County Central Municipal Court Judge Louis J. Dinice set Lazerowtiz's bail at $100,000 with a 10 percent option.

Lazerowtiz was remanded to the Bergen County Jail in lieu of bail. His first court appearance is scheduled for 9 a.m. Oct. 5.

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Photo: Jay I. Lazerowtiz, 58, of Franklin Lakes — Bergen County Prosecutor's Office