South El Monte, CA asked in Criminal Law and Real Estate Law for California

Q: Attorney took all proceeds from my house sale, deposited it into a trust account under false pretenses. Now I'm homeless

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2 Lawyer Answers
James L. Arrasmith
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Answered
  • Criminal Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: I'm so sorry to hear about your situation. It sounds like a truly awful experience and I can only imagine how difficult and stressful this must be for you.

Based on what you've described, it seems the attorney may have committed legal malpractice and/or fraud by taking the proceeds from your home sale under false pretenses and failing to distribute those funds to you. This is a serious breach of fiduciary duty.

Under California law, attorneys have a legal and ethical obligation to act in the best interests of their clients, handle client funds properly, and avoid any fraudulent or deceptive conduct. Misappropriating client funds is considered a serious offense.

Some steps you may want to consider:

1. File a complaint with the State Bar of California. They investigate claims of attorney misconduct and can potentially discipline the lawyer, up to disbarment in serious cases.

2. Consult with a legal malpractice attorney to discuss potentially suing the original lawyer for malpractice, breach of fiduciary duty, fraud, and damages. Many offer free initial consultations.

3. If the funds were placed in a client trust account, you can file a claim with the Client Security Fund, which may reimburse some financial losses caused by dishonest conduct of a California lawyer.

4. Consider reporting it to local law enforcement and the district attorney's office, as the attorney's actions may constitute criminal theft or embezzlement.

5. Seek out housing assistance and social services in your area, as dealing with sudden homelessness is an emergency situation. Local legal aid organizations may also be able to provide advice.

I know this is an incredibly difficult situation with no easy answers. Please don't hesitate to utilize any available resources and advocates who may be able to provide guidance and support during this challenging time. Wishing you all the best in seeking justice and getting back on your feet. Stay strong.

Delaram Keshvarian
Delaram Keshvarian
Answered
  • Orange, CA
  • Licensed in California

A: I am so sorry for you having to go through this hardship!

Attorneys can keep the fund that's not clear whether belongs to them or their clients. The undisputed amount of fund they receive must be sent to the client.

If there is any type of dispute between you and the attorney, you need to consult with another attorney.

You can have access to free legal advice by talking to Public Law Center or SoCal or other non-profit organizations that provide free legal services. They may be able to represent you in dealing with this attorney.

Sometimes there are other claims over the sake procedure for example other crediters and attorney has no choice other than putting the money on hold. However, the attorney is obliged to communicate clearly and honestly about that with you, and provide you with all the court orders they have received.

For a comprehensive advise, more specific facts and investigation are needed. I recommend you consult with an attorney in more detail.

Please let me know if you need further assistance.

Wish you luck.

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