A Tarrytown, N.Y., law firm has been sued for fraud and breach of contract by a New Jersey woman who claims the firm advised her to place substantial funds with a money manager who was operating a Ponzi scheme that collapsed last year.

In a lawsuit filed earlier this month in Westchester County Supreme Court (See Complaint), Patricia Romano claims her former lawyers at Cushner & Garvey advised her to invest funds from an $875,000 settlement with her ex-husband with Edward Stein, a purported money manager, who embezzled the funds. Under the settlement agreement, the funds were supposed to be placed in trust accounts at Morgan Stanley.