Lawyers Suspended for Failure to Catch Former Partner’s Fraud

Former New York attorney Anthony Bellettieri stole from client trust accounts, committing fraud to the tune of about $17 million; he’s been disbarred and is serving a prison sentence.

But now, Bellettieri’s former law firm partners, Robert Fonte and Tara Anne Laundonio, have been suspended as well relating to the fraud, even though they had nothing to do with it … and that was the problem. Even though Bellettieri oversaw the Bellettieri Fonte and Laundonio escrow accounts exclusively, a New York Supreme Court Appellate Division panel is suspending Fonte and Laundonio, signatories on the accounts, for failing to pay attention to the red flags regarding their former partner’s conduct. The panel found that the two attorneys violated their “nonwaivable fiduciary duty” to protect the firm’s escrow funds. The two never saw the bank statements for the firm’s escrow or operating accounts, though they were aware of Bellettieri commingling personal and client funds, and Bellettieri had refused to timely provide documents that Fonte had requested for one account . “When it comes to safekeeping of funds… the proper approach is ‘trust but verify,’” wrote special referee Steven Krane in a report.

The panel suspended Fonte for three years and Laundonio for six months.

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