An injunction against Lewis Waddell was granted to the North Carolina State Bar and forces the attorney to turn over his financial records.
The injunction says the State Bar’s preliminary investigation indicates that Waddell may have mishandled funds from an estate account.
Waddell, who lives in Conover but whose law office is located in Newton, said last week that the issue is a misunderstanding.
According to State Bar officials, Waddell consented to the injunction granted on Friday. The hearing that was scheduled for Monday in the matter was not, therefore, needed, officials say. According to the injunction, Waddell wants to cooperate with the State Bar.
The injunction prohibits Waddell from accepting any funds from clients, withdrawing funds or writing checks from an account from which client or fiduciary funds have been deposited. It also demands he turn over any financial records and receipts of accounts that client or fiduciary money has been deposited. It also demands any records and files of current and former clients.
The injunction goes on to say that Waddell is prohibited from “serving as an attorney-in-fact (serving as someone’s power of attorney), trustee, executor, personal representative or in any other fiduciary capacity.”
The injunction will remain in effect until “further order of the court.”
The State Bar received a temporary restraining order against Waddell at the end of December.
The restraining order said Waddell made two $10,000 withdrawals from an estate without the knowledge or consent of the estate executrix, who was the only one authorized to make withdrawals.
Last week, Waddell said he thought originally that he, too, was authorized to make withdrawals. The restraining order said that no disbursements should have been made on behalf of the estate at the time the withdrawals happened.
Waddell took the money out of the account to wrap up the final matters of the estate, he said. He said last week that he was waiting to hear from the State Bar so he could return the money to the account, which had been frozen by the State Bar.
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