West Miami-Dade Lawyer Faces Serious Allegations of Misappropriation

News Summary

Xenia Hernandez, a personal injury attorney in West Miami-Dade, is under investigation for allegedly misappropriating settlement funds and failing to meet legal financial requirements. The Florida Bar issued an emergency suspension after a client complaint highlighted significant discrepancies in her trust account. The situation raises serious ethical concerns and might lead to further implications for Hernandez and her law firm as investigations continue.

West Miami-Dade Personal Injury Attorney Faces Serious Allegations

In a shocking turn of events, West Miami-Dade personal injury attorney, Xenia Hernandez, is embroiled in a serious scandal involving alleged misappropriation of settlement funds, triggering a wave of concern among clients and the legal community. The Florida Bar has placed Hernandez under emergency suspension, effective May 25, as investigations uncover significant discrepancies in her financial dealings.

Client Complaints Spark an Investigation

The turmoil began when a client, Ryan Willoughby, filed a complaint alleging that Hernandez failed to disburse his portion of a $41,000 settlement. According to Willoughby, Hernandez notified him of the settlement on the very day she received the funds, but payment was never delivered. Willoughby’s numerous attempts to contact her regarding the settlement were met with silence, leading him to escalate the matter to the Florida Bar on March 12, 2024.

Discrepancies in Trust Account Exposed

Following Willoughby’s complaint, a compliance audit was launched, revealing stunning findings. The audit indicated that Hernandez had allegedly misappropriated between $169,000 and $381,000 from her trust account. This account, which is designed to hold client funds until disbursement, showed significant shortages, with Hernandez purportedly using client funds for her firm’s operational expenses. In one instance, her trust account was only showing $207, despite a required minimum balance of at least $296,818.

Failure to Follow Ethical Guidelines

Hernandez’s firm received the settlement check on November 13, 2023, but it wasn’t until months later that any funds were attempted to be disbursed to Willoughby. Although Hernandez claimed to hold Willoughby’s funds, a check dated April 3 did not reach the client until April 29, 2024. She contended that Willoughby’s relocation to California caused the delay; however, this claim has been disputed. Compounding the issue, Hernandez had not settled Willoughby’s medical expenses, which amounted to $4,687, indicating further mismanagement of funds.

Secrecy and Evasive Behavior

As the investigation deepened, both Hernandez’s business website and her social media pages have gone dark, raising troubling questions about her intentions. Emails sent to her legal address now receive automated replies stating that the account is no longer active. Moreover, attempts by the Miami Herald to contact Hernandez have been unsuccessful. In her absence, Eleventh Circuit Chief Judge Nushin G. Sayfie has appointed Judge Alicia Priovolos Garcia to oversee the Bar’s case against her.

Widespread Implications and Future Consequences

The ongoing situation has raised alarms about potential further implications for Hernandez. She is suspected of making unauthorized transfers from her trust account to her operating account, along with payments made to employees and operational expenses directly from funds that should have been held for clients. Additionally, audit findings suggest that Hernandez partially complied with subpoenas for records related to at least 57 settled cases, with further inquiries triggered by the discovery of bounced checks.

Fraud Investigation Rocking The Hammocks Homeowners Association

In other legal news, another significant investigation has come to light involving The Hammocks Homeowners Association. Jesus Cue, the former controller/accountant for the HOA, has been arrested in connection with multiple fraud charges, including unlawful compensation, racketeering, and organized schemes to defraud. His consulting company allegedly received $644,000 in vendor payments during his tenure from 2018 to 2022.

Allegations of a Widespread Scheme

The investigation has unveiled a disturbing pattern of misconduct involving various HOA board members, including the creation of fictitious companies and the siphoning of over $6 million from HOA funds. Previous arrests have been made, with six individuals apprehended and former members, including treasurer Myriam Rodgers and vice president Monica Ghilardi, pleading guilty and cooperating with prosecutors. Several other allegations surfaced, including fraudulent billing practices and the establishment of shell corporations.

Community Outcry and Potential Sentencing

Affecting nearly 40,000 residents, the unfolding scenarios have provoked outrage within the community, demanding accountability from those involved. Cue, facing serious charges, could potentially face a prison sentence of up to 30 years if convicted, prompting authorities to suggest that further arrests may occur as investigations progress. State Attorney Katherine Fernandez Rundle has emphasized the severe nature of these offenses, vowing that justice will be served.