Manchester attorney, former talk host charged with theft, money laundering

Manchester-based attorney Robert Novy risks 10 to 20 years in prison if convicted of money-laundering charges filed today by the New Jersey Attorney General's office.

Novy, 65, of Brick Township, is accused of skimming more than $1,200,000 from four elderly clients between 2010 and 2015, and funneling the money through his attorney trust and attorney business accounts, according to information from Attorney General Christopher S. Porrino's office.

He was ordered to be placed in the Ocean County Jail in Toms River, with bail set at $500,000.

The first-degree money-laundering charge also carries a potential fine of up to $500,000. Novy is also charged with second-degree counts of theft by unlawful taking and misapplication of entrusted property, each carrying a possible term of five to 10 years and fines up to $150,000.

Novy, a renowned elder-law specialist, is familiar to WOBM listeners for the program he once hosted, "Inside The Law."

He was the subject of a complaint filed in April by the New Jersey Office of Attoney Ethics, accused them of taking more than $100,000 from a client's estate in 2012 and 2013.

Investigators this morning seized billing records and related documents in his Manchester office, asked a Superior Court judge to appoint a trustee to supervise his firm's operations, and obtained a court order that froze more than $3,500,000 in his firm's bank accounts.

Novy is accused of gaining control of accounts and estates through wills, powers of attorney and trust documents.

Authorities said that, when questioned by relatives of the alleged victims, Novy would claim administrative errors and repay funds. Investigators are now reviewing other large transactions, involving more clients, that they consider suspicious.

They claim that Novy would transfer funds from clients' personal accounts to his attorney trust accounts, overcharged clients without supporting invoices, and moved funds from trust accounts to his personal account or the firm's operating account.

Novy is also accused of directing insurance companies in which clients had significant assets, annuities, or life insurance policies, to redeem them and send the checks directly to him.

Authorities said that Ocean County Surrogate Jeff Moran brought the situation to the attention of the Division of Criminal Justice, which assigned the probe to its Financial and Computer Crimes Bureau and the Division of Taxation's Office of Criminal Investigation.

Citing specifics, investigators allege: Theft of $78,000 from an 88-year-old client impaired by dementia, and billing her and her estate $78,000 without invoices or supporting documents; more than $176,000 from an 85-year-old Alzheimer's patient; at least $459,000 from an 87-year-old client; and almost $550,000 from a fourth client.

State investigators are probing whether any other misappropriation situations exist. They recommend reporting suspicions confidentially to 1-866-TIPS-4CJ.

Charges are accusations. Defendants are presumed innocent unless, and until, found guilty in a court of law.