The New Jersey Supreme Court will review a London-based real estate investor's lawsuit accusing Fox Rothschild of improperly transferring $2.4 million from the firm's attorney trust account to now-convicted Ponzi schemer Eliyahu Weinstein.

With a notice handed down Nov. 16 and made public Monday, New Jersey's high court agreed to consider whether U.K. real estate investor Moshe Meisels can maintain his claims of conversion and breach of fiduciary duty against Fox Rothschild. Meisels alleged that he was bilked by Weinstein—who previously pleaded guilty to running a yearslong, real estate Ponzi scheme that caused $200 million in losses—and that more than $2.4 million he lost moved through Fox Rothschild's attorney trust account.

The state high court's review comes after an intermediate appeals court in June revived Meisels' conversion claim against the law firm, while it also kept intact a trial court's dismissal of the fiduciary breach claims.

Meisels alleged that he and Weinstein reached an agreement to invest in property in Irvington, New Jersey. In connection with that deal, Weinstein in 2007 directed Meisels to transfer a portion of the investment into Fox Rothschild's attorney trust account, according to court documents. Weinstein, who was later sentenced to 22 years in prison for his Ponzi scheme, told Meisels at the time that Fox Rothschild was carrying out legal work on the property purchase.

Meisels transferred the money, and it later went into the coffers of some of Weinstein's businesses, with $75,000 of it going to Fox Rothschild. The money was never used to purchase any property and, in his suit against the firm, Meisels alleged that Fox Rothschild effectively aided Weinstein as he carried out his fraud.

Lawyers from Fox Rothschild attacked Meisels' claims on several fronts, ultimately convincing a trial court to dismiss them in a summary judgment ruling. Among other arguments, Fox Rothschild said Meisels couldn't pursue his conversion claim because he didn't do enough to show that he actually owned the money he allegedly lost, and because he never demanded its return.

Meisels countered that, while the transfers to the attorney trust account technically came from a company called Rightmatch Ltd., the business was serving merely as a conduit for the London-based Meisels to help convert his own personal funds from the British pound to U.S. dollars.

In June, the Superior Court of New Jersey, Appellate Division found against the law firm on both of those arguments. The appeals court held that Meisels had done enough to prove it was his money that flowed through the firm's trust account. The court also noted that under the facts of this particular case, Meisels wasn't required to demand his money back to be able to claim conversion in court.

The appeals court did, however, come down on Fox Rothschild's side with respect to Meisels' breach of fiduciary duty claim. The appellate ruling affirmed the trial court's conclusion that Fox Rothschild didn't owe any fiduciary duty to Meisels, leaving that claim dismissed.

Fox Rothschild's defense lawyer, Francis Devine III of Pepper Hamilton, did not immediately respond to a request for comment, nor did a lawyer for Meisels, Brian Condon of Condon Catina & Mara in Nanuet, New York.

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