On August 22, 2022, the Wake County Superior Court in North Carolina issued a Consent Order of Preliminary Injunction in the case of North Carolina State Bar v. Richard D. Allen. The order was signed by Superior Court Judge, Wake County, and Richard D. Allen, the respondent.
According to the order, the State Bar received information that Allen may have mishandled entrusted funds, which led to an investigation. The investigation revealed that Allen failed to produce various trust account and client records requested by the State Bar. The State Bar sought a consent order of preliminary injunction to prevent further misconduct and to protect the interests of Allen’s clients.
The court found that there was a need for prompt action to preserve the status quo and ensure that entrusted funds were not mishandled. It also found that Allen stipulated to the court’s jurisdiction over his person and acknowledged the court’s subject matter jurisdiction pursuant to North Carolina General Statute § 84-28(f).
The court ordered that Allen be enjoined from receiving or disbursing any funds from or on behalf of clients or other individuals in a fiduciary capacity, from writing checks against or withdrawing funds from any account into which client or fiduciary funds have been deposited, and from directing any employee or agent over whom Allen exercises control to do so.
The court also ordered Allen to provide the State Bar with records of all accounts into which client or fiduciary funds have been deposited and with all client files requested by the State Bar. Allen was also required to produce monthly and quarterly reconciliation reports for all trust accounts that he is required to produce and maintain pursuant to the Rules of Professional Conduct.
The court further ordered that upon request of the State Bar, Allen must produce to the State Bar at its Raleigh, North Carolina location, for inspection and copying all records and documents relating to individuals or entities for whom Allen has provided legal services.
The Consent Order of Preliminary Injunction remains in effect until further order of the court.
Mr. Allen practices in Durham, North Carolina. He is licensed in North Carolina. His info can be found on lawyersfindlaw.com.
A copy of the original filing can be found here.