North Carolina Legal News: Mcilveen Family Law Firm Faces Serious Fraud Allegations

In a significant legal development, the Mcilveen Family Law Firm, operating out of North Carolina, finds itself embroiled in a serious lawsuit. Case No. 23CV026051-910, filed in the Superior Court of North Carolina, Wake County, levels grave accusations against the firm including fraud, conversion, breach of contract, breach of fiduciary duties, and involvement in illegal civil conspiracies.

This complex case, initiated by a single mother of two autistic children, comprises a 34-page document detailing alleged misconduct by the firm and its key personnel, including partners Sean Mcilveen and Angela Mcilveen, and Senior Litigation Attorney Daniel O’Malley. The allegations paint a picture of an organization steeped in unethical practices, ranging from conversion and constructive fraud to wrongful interference with contractual relations and multiple illegal conspiracies. Particularly troubling are claims of threats made against the plaintiff and her children for contemplating legal action or police reports.

The plaintiff seeks wide-ranging damages, citing actual and special damages exceeding $25,000 each, punitive damages for intentional and grossly negligent conduct, and reimbursement of all legal fees. Additionally, the lawsuit demands a court order to void all fraudulent transfers made by the defendants.

Compounding the firm’s legal woes, the Better Business Bureau (BBB) has recorded complaints from three former clients. These complaints allege a spectrum of unethical behavior, including overbilling, threats related to court appearances, scams defrauding clients of significant sums, refusal to return trust fees, and abrupt withdrawal from legal representation.

The Mcilveen Family Law Firm, with locations in Charlotte, Gastonia, and Raleigh, lists nine attorneys, including partners and associates, on its website. The firm, once a reputable name in family law circles, now faces a daunting challenge as it navigates through these serious accusations and the ensuing legal battle.

Specific Allegations in this lawsuit are:

1)         Conversion;

2)         Constructive Fraud;

3)         Breach of Fiduciary Duty;

4)         Wrongful Interference with Contractual Relations;

5)         Fraud;

6)         Seven different illegal conspiracies designed to harm plaintiff and deprive her for more than three years of her 401 (k) fund;

7)         Threatening to sue plaintiff and her two autistic children if they reported crimes to the police;

8) Threatening to sue plaintiff and otherwise harm her if they filed litigation against the law firm or any of its attorneys.

Damages sought, but not limited to:

1)         Actual damages in excess of $25,000;

2)         Special damages in excess of $25,000;

3)         Punitive damages for engaging in intentional, willful, grossly negligent, and/or reckless conduct;

4)         All attorneys fees and costs;

5)         A court order voiding all fraudulent transfers made by defendants.

Summary of the Better Business Bureau Complaint:

1)         Overbilling;

2)         Threatening not to show up in court hearings a few days later unless huge payments were made;

3)         Scamming a client out of $15,000;

4)         Refusing to return trust fees;

5)         Withdrawing as counsel as late as two days before a scheduled hearing.

This case, shedding light on the potentially dark underbelly of legal practice, is set to proceed in the North Carolina courts, promising to be a closely watched legal drama with wide-ranging implications for legal ethics and professional conduct in the state.