MIDDLETOWN - Brookdale Community College agreed to pay its former athletic director $425,000 after firing him in 2012 over how he handled finances from a basketball tournament, including a $200 payment to himself.

The payout to Frank Lawrence settles a breach of contract lawsuit he filed against the college in July 2014 and ends a dispute lingering since the 2011 Shore Conference Tournament, an annual high school basketball tournament hosted at Brookdale's Collins Area.

Lawrence's attorney, Joshua Bauchner, declined to comment. Brookdale's interim communications director, Stephen Hudik, said it's the college's policy not to comment on litigation, including settlements.

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Brookdale stripped Lawrence of his duties in March 2011 after college officials say he improperly handled cash related to the basketball tournament the month prior.

Lawrence, however, said he had been following long-standing practices that Brookdale officials knew about and had never previously objected to.

The case went to Administrative Law Judge Donald J. Stein, who determined Lawrence exercised poor judgment by paying himself $200 out of the tournament’s proceeds, paying staff in cash without withholding taxes and using "sloppy" accounting practices that put into question money from the event was disbursed.

Stein recommended a year suspension, which Lawrence had already served by the time of his ruling in April 2012, and reinstatement to his position as athletic director.

Brookdale, however, rejected the reinstatement and instead voted to fire Lawrence in May 2012. Lawrence appealed the decision, and the Appellate Division of the Superior Court sent the case back to Brookdale trustees to reconsider the action, saying the board's previous decision was not supported by credible evidence.

That included the board's determination that Lawrence violated policies regarding deposit and payment of cash to employees, when the college admitted it had no such written policies in place at the time.

Instead, the trustees decided against renewing Lawrence's contract in 2013.

Susanne Cervenka: @scervenka; 732-643-4229; scervenka@gannettnj.com