By Susan C. Moeller
Senior Reporter

LYNDHURST (Jan. 8, 2009) — A Lyndhurst lawyer has allegedly admitted that he stole approximately $4 million from a real estate trust account and used it to gamble in Atlantic City.

Michael Rumore, who practiced law from his Travers Place home, was charged with first-degree money laundering and second-degree theft Jan. 2 in Bergen County Superior Court, after he pled guilty to stealing money that was entrusted to him for the settlement of various real estate transactions.

Rumore allegedly transferred the money into personal and business accounts, according to a press release issued by the state attorney general’s office, and used much of it for slot machine gambling in Atlantic City. Rumore gambled at eight different casinos, but Trump’s Taj Mahal, Caesar’s, Bally’s and Harrah’s were favorite establishments, said Peter Aseltine, spokesperson for the state attorney general.

Rumore also admitted that he was civilly, but not criminally liable, for the misuse of another $2.2 million, Aseltine added. As part of his plea agreement, Rumore agreed to pay back the full amount, approximately $6.2 million.

However, Rumore’s attorney, Anthony Alfano, said that his client is unlikely to make full restitution.

“He’s going to try to pay back as much as  he could,” Alfano said. “There’s no way he’s going to be able to come close to that.”

Rumore  was released on $100,000 bail. He will be sentenced in Bergen County Court on April 17. The two charges carry a combined maximum sentence of 30 years, but the state will recommend only half of that — 15 years in state prison, according to a press release.

Alfano will argue for an even more reduced jail term.

Rumore made his confession for the simple reason that “he’s guilty,” Alfano added. “The only thing he could do was plead and try to win some compassion from the judge.”

His client is troubled, Alfano said. Rumore suffers from bipolar disorder, depression, diabetes and a back problem that will require surgery before he is sentenced, he added.

“He basically had a very, very serious gambling problem,” Alfano continued.

According to the attorney, all of the money Rumore stole went to the casinos, with Rumore traveling to Atlantic City every day. “Not a dime of it went anywhere else,” Alfano said.

When Rumore got lucky and won some money, he returned it to the trust fund, Alfano said. As for the larger amount: “He always intended to pay it back.”

Five title insurance companies, including First American Title Insurance Company and New Jersey Title Insurance Company, were listed as victims in the complaint.

The state Division of Criminal Justice began investigating Rumore four or five months ago after complaints were filed “about funds not being properly dispersed,” Aseltine said.

Rumore had served as a fire chief in Lyndhurst several years ago, but was no longer associated with the department at the time of the crime. Rumore was aware of the investigation and turned in his law license Sept. 4. He was subsequently disbarred Sept. 11.

The money in Rumore’s trust account came from roughly 20 different real estate closings, according to Aseltine. Most of the transactions were related to the sale of property in Essex County. Funds held in attorney trust accounts are supposed to be used to pay off existing mortgages and other fees related to real estate purchases.

“This defendant betrayed the oath he took as an attorney, exploiting his position as a fiduciary by stealing approximately $4 million entrusted to him for various real estate closings,” Attorney General Anne Milgram stated in a press release.