NJ Attorney Disbarred for 'Total Lack of Moral Fiber' After Federal Conviction

New Jersey attorney Albert O. Grant II has been disbarred following his guilty plea and criminal conviction in New York for his role in an advanced fee scheme that caused victims at least $4.8 million in losses and for betraying a longtime friend of more than $300,000 in entrusted funds.

Between 2014 and 2019, Grant and five co-conspirators engaged in an advanced fee scheme, according to a Disciplinary Review Board decision. An advanced fee scheme involves a victim paying money to someone in order to receive something of greater value. In this case, the victims sought “stand-by letters of credit,” or SBLCs, from financial institutions. The group managed to illegally obtain at least $4.8 million from its victims.

The conspirators would issue a victim a fake SBLC in the name of a fake bank for a significant, advanced fee, according to the decision. Grant’s role was as the “escrow agent.” He deposited victims’ advanced fees into his attorney trust account and would execute an “escrow agreement” signed by the victim, Grant and one of the other co-conspirators. The agreement promised that no funds would be disbursed until the victim received the SBLC.

According to the decision, Grant would then immediately transfer the advanced fee to his co-conspirators and lie to the victims about the status of their funds. A co-conspirator would falsify bank records in Grant’s name to “placate anxious victims about that status of their advanced fees.” The co-conspirators would then use the Society for Worldwide Interbank Financial Telecommunication (SWIFT) to send the falsified SBLC’s to legitimate banks.

Grant was paid about $160,000 over five years for his role in the scheme, the decision said. He was arrested by U.S. mMarshals on Feb. 26, 2019. After his arrest, Grant cooperated with the investigation of his co-conspirators conducted by federal agents.

The DRB decision further revealed that Grant admitted three incidents of the misappropriation of client funds to federal agents. Additionally, in 2017, Grant stole $316,699.08 in closing funds from his longtime friend and fellow attorney. Grant admitted liability for the stolen funds on Dec. 13, 2018, in U.S. District Court for the Southern District of New York but stated that he did not have the resources to repay the funds.

As a result of his involvement in the advanced fee scheme and the theft of his friend’s funds, Grant was charged with one count of conspiracy to commit wire fraud and two counts of wire fraud in the Southern District of New York. According to the DRB decision, Grant would feign medical conditions to “delay his cooperation.”

“More egregiously, respondent also submitted to the SDNY a false certification, from one of his co-conspirators in the advanced fee scheme, wherein the coconspirator misrepresented that he had a legitimate claim to the funds in respondent’s frozen ATA,” stated the decision. “Respondent’s obstructive behavior caused the SDNY to threaten respondent with sanctions to compel his cooperation.”

District Judge Paul A. Engelmayer sentenced Grant to 14 days of imprisonment and three years of supervised release.

Grant was suspended from the practice of law in New Jersey on April 29, 2020.

“Standing alone, respondent’s criminal participation in the advanced fee scheme compels his disbarment,” stated the decision. “Moreover, the Court has found that attorneys who commit crimes that are serious or that evidence a total lack of ‘moral fiber’ must be disbarred to protect the public, the integrity of the bar, and the confidence of the public in the legal profession.”

“He not only defrauded victims of millions of dollars in the advanced fee scheme,” stated the decision, “but he also betrayed the trust of his longtime friend, and client, by knowingly misappropriating $316,699.08 of his entrusted funds.”

“Thus, to protect the public and preserve confidence in the bar, and consistent with New Jersey disciplinary precedent, we determine to recommend to the Court that respondent be disbarred,” concluded the decision.

A New Jersey Supreme Court order filed Nov. 14, 2022, ordered Grant disbarred effective immediately and permanently restrained and enjoined him from practicing law.

Grant appeared pro se and did not immediately return a call seeking comment.