On Friday, December 13, 2024, the Wake County Superior Court issued a consent order for a preliminary injunction against attorney Juan Antonio Arreola following a petition from the North Carolina State Bar. The court’s decision came after the State Bar raised concerns regarding Arreola’s handling of entrusted funds.
The case is entitled “The North Carolina State Bar v. Juan Antonio Arreola,” with case no. 24 CVS 24CV039372-910.
According to the North Carolina State Bare it received information suggesting that Arreola mishandled entrusted funds. Arreola is required to cooperate with the Bar’s investigation into his financial activities. According to the State Bar’s records, Arreola maintained an attorney trust account at Truist Bank.
The court found that immediate action was necessary to protect the status quo and prevent any further mishandling of entrusted funds. In the order, Arreola agreed to the court’s jurisdiction and waived his right to contest the order on jurisdictional grounds. The findings indicated that there was a significant need for oversight to ensure that no additional entrusted funds would be compromised during the investigation.
Under the terms of the injunction, Arreola is prohibited from receiving or distributing any entrusted funds, which includes all trust and fiduciary funds as defined by North Carolina’s Rules of Professional Conduct. Furthermore, he is barred from engaging in any fiduciary capacities, including acting as a trustee or escrow agent, until further notice from the court.
Financial institutions holding accounts in Arreola’s name are required to take necessary measures to prevent him or his agents from accessing or disbursing funds from these accounts. Arreola must also provide the State Bar with comprehensive financial records related to any accounts where client or fiduciary funds were deposited. This includes producing bank statements, canceled checks, and other relevant documentation upon request.
Additionally, Arreola is ordered to submit monthly and quarterly reconciliation reports for any trust accounts he manages, as mandated by the Rules of Professional Conduct. If he has not maintained such records, he is instructed to conduct the necessary reconciliations and submit the reports within two weeks of the court order.
The injunction is set to remain in effect until the court issues further orders. The court’s ruling highlights the ongoing efforts of the North Carolina State Bar to ensure accountability within the legal profession and protect the interests of clients.
According to avvo.com, Mr. Arreola is an attorney in Wilson, North Carolina. He acquired his law license in North Carolina in 2017.
A copy of the original filing can be found here.
