Nassau Attorney Pleads Guilty To Stealing From Clients

A Garden City attorney pleaded guilty Monday to stealing hundreds of thousands of dollars from 22 clients' settlement funds.

Steven Morelli, 60, pleaded guilty to three counts of second-degree grand larceny and five counts of third-degree grand larceny. He is due back in court on June 9 for sentencing, and faces a maximum sentence of 7 1/2 years in jail. Morelli will also pay resitution of approximately $615,000 in addition to the the $170,000 he already paid from a prior plea.

“Attorneys are entrusted with a special responsibility to act in their clients’ best interests, but instead this defendant treated his clients’ settlement funds as his personal piggy bank,” said District Attorney Madeline Singas. “I am grateful to the NCPD and our prosecutors for bringing this defendant to justice and ensuring that he will never practice law again.”

From February through August, 2015, Morelli retained and misused settlement checks from four clients totally $150,000. After a joint investigation by the Nassau County Police Department and the District Attorney's office, he was arrested in February 2016.

The investigation continued after the initial arrest and uncovered 13 more victims, who had approximately $573,000 in stolen funds. Morelli was then re-arrested in May 2016 for these crimes. The investigation continued after the second arrest and revealed five additional victims and client thefts of approximately $64,000. In total, Morelli stole more than $785,000 from his clients.

Prosecutors say Morelli used the money for personal purposes and to carry on his law practice. Because of his plea to a felony charge, Morelli was automatically disbarred.

Photo: District Attorney's office