New date in court for Hazlet attorney charged with swindling 60 clients out of $1.2M
HAZLET – The case against a disbarred real estate attorney from Hazlet who was indicted in July 2021 on charges that he fleeced 60 clients out of $1.2 million in escrow funds by failing to do work on real estate deals will resume after an Appellate Division ruling and a two-year hiatus.
Steven H. Salami, 48, has a court date of Jan. 2, a scheduling conference.
The 63-count indictment against Salami comprised 60 counts of misapplication of entrusted funds, one count of theft and two counts of financial facilitation of criminal activity, otherwise known as money laundering.
A judge in the case dismissed the two counts of money laundering, which the state appealed. The Appellate Division reversed that decision Monday, reinstating the money laundering charges.
Salami's defense counsel, Steven E. Nelson., whose main office in Neptune City, said he will be filing for certification before the state Supreme Court, asking it to hear an appeal.
In striking down the two money laundering counts, the lower court judge, who was not named in the Appellate Division ruling, found that the legislature intended the financial facilitation statute to be a tool for going after organized crime figures. The judge also said that Salami’s alleged actions were no different than a “common thief placing stolen money into his pocket,” according to the ruling.
The Monmouth County Prosecutor’s Office countered that saying Salami was using “some of the stolen funds for payments for prior clients rather than personal purchases, and therefore was essentially running a Ponzi scheme,” the ruling said.
The Appellate Division ruled that the money laundering statute has a broader scope than the lower court judge indicated.
Prosecutors said Salami’s actions resulted in missed closing dates and nullified real estate transactions, causing hardship to scores of people trying to close on homes who had placed money in escrow accounts entrusted to Salami.
According to the appeals panel’s ruling, Salami’s attorney stated “defendant had a serious substance abuse and gambling problem for several years, and by 2018 ‘was essentially neglecting and ignoring his law practice despite continuing to accept new real estate clients.’”
Two of the misapplication counts and the theft were second-degree charges, which can bring up to 10 years of prison each if there’s a conviction. The money laundering charges carry a penalty of up to 20 years in prison each.
Salami was arrested in October 2019 and held in Monmouth County Jail. He was released following a detention hearing.
Ken Serrano covers crime, breaking news and investigations. Reach him at 732-643-4029 or at kserrano@gannettnj.com.
This article originally appeared on Asbury Park Press: Disbarred Hazlet NJ lawyer back in court on swindling charges
