Couple allegedly misused clients' investment funds
BY MICHAEL ACKER Staff Writer
ASouth River couple stand accused of stealing $900,000 from clients they worked for at their accounting business.

TheMiddlesex County Prosecutor's Office announced the arrest of Janet L. Neely, 53, of Rubin Street, last month, followed by the arrest of her 63-year-old husband, Charles, on Feb. 8.

The defendants are principals of Neely Associates, an accounting and tax preparation business located on Racetrack Road in East Brunswick. As a result of the investigation, prosecutors reportedly found that no one affiliated with Neely Associates is licensed to trade in securities or stocks.

Prosecutors charged Janet Neely with second-degree theft, second-degree theft by deception and second-degree misapplication of entrusted funds in connection with the theft of approximately $350,000 from a 78-year-old Lakewood man. Each second-degree charge carries a maximum term of 10 years in prison, as well as a $150,000 fine, according to the prosecutor's office.

Investigator Adrian Villegas and Sgt. Daniel DelBagno of the Special Prosecutions Unit of the Middlesex County Prosecutor's Office conducted the investigation. They found that the victim allegedly entrusted assets totaling over $300,000 to the defendant, which included the proceeds of the sale of his home, his employee stock plan and other miscellaneous funds, between September 2004 and May 2005.

The victim reportedly received written confirmation stating that his money was invested in a specified company and funds. However, his money was never invested in that company or in any other funds, au- thorities said.

Janet Neely also allegedly opened credit card accounts in the victim's name, without his knowledge, and then used those credit cards to purchase personal items.

The prosecutor's office reviewed records and determined that three other individuals invested a total of $600,000 that Neely Associates allegedly stole. This led to the arrest of Charles Neely, who was charged with conspiracy and misapplication of entrusted funds.

Prosecutors also claimed that the cash the victims invested was used to pay for vacations, make mortgage payments and finance the Neelys' son's towing business. Their son was not charged, according to prosecutors.

"It is our belief that the investigation so far indicates that money was used to help run that company," Middlesex County Assistant Prosecutor Brian D. Gillet said.

Gillet said the investigation is ongoing, as prosecutors seek to determine whether there were other victims.

He said the investigation started when the Lakewood man reached out to authorities.

"We received a call from an attorney for the elderly man who lived in Lakewood," Gillet said.

An arraignment on the complaint will be scheduled in Superior Court in New Brunswick at a later date. The defendants have pleaded not guilty to all charges.

Janet Neely was released after posting $500,000 bail, while her husband was released upon posting $75,000 bail.

Gillet commended the investigators on their work with the case, and he asked that anyone who may be a victim or have information on the case to call the prosecutor's office at (732) 745-3300.