Los Angeles, CA – August 2024

Case Number	Court	Judicial Office
SBC-23-O-30820	Los Angeles	Wang, Phong
File Date	Case Type	Case Status
07/31/2023	Original Discipline	Supreme Court – Closed

California attorney John Paul Garcia, who has been practicing law since 2002, is facing a litany of disciplinary charges brought by the State Bar of California. Filed on July 31, 2023, the charges encompass a wide range of serious offenses, including the misappropriation of client funds, issuing checks from accounts with insufficient funds, commingling personal and business expenses with client funds, and repeated misrepresentation to clients. These charges may result in Garcia’s disbarment and permanent removal from practicing law in California.

Misrepresentation and Misappropriation of Client Funds

Garcia’s troubles began in June 2019 when he mishandled the settlement funds of his client, A. Arevalo. Garcia received a settlement check for $7,200 on Arevalo’s behalf, but he misrepresented the actual amount received, listed incorrect fees on a disbursement memorandum, and ultimately paid himself $3,600.50 instead of the agreed-upon $2,400. Instead of properly distributing the funds, Garcia kept $1,198.07 that was owed to Arevalo, leading to charges of misappropriation and misrepresentation, which constitute moral turpitude under Business and Professions Code section 6106.

A similar situation occurred with another client, J. Arevalo, from whom Garcia misappropriated $1,232 by inflating his legal fees. These actions resulted in additional charges of misrepresentation and misappropriation.

Mismanagement of Client Trust Accounts

Garcia’s mishandling of client trust accounts continued across multiple cases. After distributing portions of settlements, Garcia repeatedly failed to maintain the required balances in his trust accounts. For both A. Arevalo and J. Arevalo, Garcia was responsible for keeping balances of $1,198.07 and $1,232 respectively, but he failed to do so, violating Rules of Professional Conduct, Rule 1.15(a).

Further Misappropriation of Funds and Multiple Clients Impacted

The pattern of financial misconduct extended to other clients, including C. Chicas, N. Gomez, and A. Aguilar, whose settlements Garcia also mishandled. After receiving a $9,950 settlement on their behalf, Garcia kept $375.02 that should have been returned to the clients. Despite issuing a settlement disbursement memorandum, Garcia misappropriated funds designated for medical payments, instead keeping them for himself and his law firm. This led to additional charges of moral turpitude and failure to maintain funds in trust.

Garcia also mishandled the settlement funds for J. Vazquez, a client who was owed $3,134 from a $6,500 settlement. Garcia misappropriated $967.34 of these funds and paid himself more in legal fees than what had been agreed upon, leading to further charges of misappropriation and misrepresentation.

Improper Sharing of Legal Fees with Non-Attorney

Garcia’s questionable financial practices extended beyond his clients. He is accused of sharing legal fees with Ronald Aguilar, a non-attorney. Between July 2019 and September 2020, Garcia paid Aguilar over $10,000 in connection with several client settlements, violating Rule 5.4(a) of the Rules of Professional Conduct, which prohibits attorneys from sharing legal fees with non-lawyers.

Commingling of Personal and Business Expenses

In another breach of professional conduct, Garcia used his client trust account to pay business expenses. Between January 2019 and September 2020, he issued multiple payments to Ronald Aguilar directly from his client trust account, a clear violation of Rule 1.15(c), which forbids commingling client funds with personal or business funds.

Issuing NSF Checks

Garcia’s financial mismanagement also resulted in the issuance of checks with insufficient funds. From July 18 to July 22, 2019, Garcia issued several checks from his client trust account, knowing that the account did not have enough funds to cover them. Despite the insufficient funds, the bank honored the checks, adding to the charges of moral turpitude, dishonesty, or corruption under Business and Professions Code section 6106.

Conclusion

Garcia’s repeated misappropriation of funds, misrepresentation to clients, mishandling of client trust accounts, and improper financial transactions have led to a multitude of disciplinary charges. If found guilty, Garcia could face disbarment, effectively ending his legal career. His case highlights the critical importance of transparency, accountability, and ethical management of client funds in the legal profession.