66 East Main Street, 3rd Floor Little Falls, NJ 07424

Attorney Uses NJ Bankruptcy Proceeds to Pay Off His Debts – 10 yrs Prison

Share on facebook
Share on linkedin

October 14, 2020

Bankruptcy proceeds that are set up to pay Creditors are carefully reviewed and strictly administered by the Courts.

Cannot understand how this attorney would think he could get away with using client’s funds to pay his own debts.

Attorney Broidy was hired to represent GRL-Mesa Investments LLC for Chapter 11 protection in Bankruptcy Court.

The bankruptcy case was resolved and dismissed.    Court directed Broidy to hold $2,469,926 funds which were derived from the sale of assets for distribution to the client’s creditors and the balance would go to the Client.   He transferred a total of $1,937,400 funds to client’s creditors and stole the remaining $512,526 to  pay for his personal expenses.

$100,000 of Mesa’s money was deposited in the attorney’s personal bank account, and then transferred $75,000 of that money to his own creditor.

I guess he thought the transfer would not be noticed and Broidy could use the funds for his debts rather than his client’s debts.

Attorney Broidy was disbarred and now faces a 10-year prison term when he is sentenced.   I am sure no one will feel “sorry” for Broidy.

I always tell my clients that Honesty is the only policy but attorneys should never have to be reminded they need to be honest, too.    Bankruptcy funds are carefully monitored as they should be.