Attorneys face legal malpractice lawsuit in fraud case

A California attorney who fails to represent a client competently may be subject to a malpractice lawsuit in the same way a medical professional might be. Legal malpractice might also be alleged if an attorney acts improperly to protect clients who are engaged in illegal behavior. This is the case in a lawsuit filed in Florida dealing with a number of redevelopment projects financed by immigrant investors.

The receiver for a ski resort has filed a lawsuit against the attorneys who represented the men associated with the properties, including the former owner of the ski resort and the resort’s CEO and president. The receiver says that with the lawsuit, he is trying to recoup the money lost by investors. According to investigators, the men raised $350 million in the EB-5 program and misused $200 million of it. The receiver is accusing the attorneys of breaching their fiduciary duty and legal malpractice.

Three of the men have been indicted for fraud and have pleaded not guilty. A fourth man remains at large. According to the attorneys for their ex-legal team, the actions of the team were always reasonable within the scope of representing their clients effectively. The case is a particularly convoluted one, and the receiver has successfully pursued lawsuits against a financial firm and others involved.

More commonly in a case of legal malpractice, an individual may be represented by an attorney whose errors might include failing to file paperwork in time to meet a statute of limitations or failing to properly investigate and perform the discovery process. In a successful legal malpractice case, it is necessary to demonstrate that the attorney’s actions were negligent and did not meet the standards that a person could reasonably expect. It may be helpful to consult an attorney regarding the situation.