You said you are on a month to month lease. Do you have a written lease at all? If so, who signed the lease as the landlord? If it was the sister, then she has to give notice or assign mgmt reponsibility to the roommate.
But the bottom line is, since you are on a month to month, you can be given 30 days that the lease is being terminated. Since the landlord is his sister, do you think she won't back him up? Anything you do is just delaying the inevitable. So start looking for a new place right away.
As for the security deposit, he doesn't have a leg to stand on. Since he hasn't asked for the full amount during the 18 months you have been there, no court is going to grant it now. As to what he is responsible for in reference to the amount you did give him, check the stickies at the top of this forum for NJ laws.
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