Paramus lawyer who stole client funds spared jail, gets probation

A choice to steal $300,000 from clients marked a bitter end to what prosecutors called a stellar legal career.  

Paul Dykstra, a disgraced Paramus attorney, stood humbly in Superior Court in Hackensack on Friday and acknowledged that his 44 years in practice could be reduced to the crime that ended it.

 

“Shame is probably the biggest thing I feel right now,” Dykstra said, declaring he would accept whatever punishment he received.

A Superior Court judge took into account Dykstra’s recent disbarment, and responded by sparing him a jail sentence and ordering five years of probation, three if he makes full restitution. 

Dykstra, 70, had enjoyed a healthy general law practice in Hasbrouck Heights that focused on real estate litigation, according to Raymond Flood, his attorney. He had no prior criminal record or blemishes in is legal career. Yet, he swiftly consented to disbarment following his arrest in April 2018.

Paul Dykstra, 70, said he felt shame for stealing 
more than $300,000 from clients. 
(Photo: Tom Nobile/northjersey.com)

Flood noted that Dykstra already took out a reverse mortgage to repay most of the funds and still owes $40,000.

“He’s done everything he possibly could to make the victims whole,” Flood said. “His life is in shambles, his career is over.” 

But Judge Christopher Kazlau said the theft was also a crime against the profession and violated the trust clients place in their attorneys. 

“Although they have been paid, that doesn’t obviate the harm and impact,” Kazlau said.

Dykstra admitted he had pocketed money that clients were expecting from a real estate deal and funded a personal business venture. When the clients pressed him for answers, he said the checks were lost in the mail, according to an affidavit of probable cause.

Paul A. Dykstra  
(Photo: Bergen County 
Prosecutor's Office)

Dykstra, however, gave a different story when questioned by authorities, claiming the money was in his possession but could not be released until he completed a “lost-check” process with the state’s Office of Attorney Ethics, according to court documents. 

He was arrested and charged with misapplication of entrusted funds and hindering an investigation, but he pleaded guilty to a third-degree theft charge. 

A Google search of Dykstra’s practice lists the firm as “permanently closed.” 

“It’s tragic all the way around,” David Malfitano, an assistant prosecutor, said.

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Paramus lawyer who stole client funds spared jail, gets probation