U.S. District Judge Fred Biery has ordered San Antonio attorney Edward Valdespino to deposit $5 million into a Bexar County court registry by Friday. The order follows Valdespino's failure to meet an earlier order to make the deposit. Biery accepted a recommendation from Magistrate Judge Richard Farrer, dated Oct. 7, to enforce an arbitration award that requires the deposit.
Florida-based I.C. Deposits Development Inc. says it transferred the $5 million into Valdespino's lawyer trust account last year to be held in escrow during a private investment transaction. The company says the deal never closed and the money was not returned. It sued in April in Bexar County District Court, and the case was later moved to federal court.
The order also requires Valdespino to file proof that the full amount has been deposited. It bars him from moving or disposing of the money until then. If he misses the deadline, I.C. Deposits could ask the court to hold him in civil contempt. The order does not specify possible sanctions.
Valdespino and Kelli Cubeta, the attorney for I.C. Deposits, did not immediately respond to emails seeking comment. Cubeta has previously told the court that the $5 million has been dissipated or is gone. Valdespino faces two other pending lawsuits in San Antonio federal court over funds sent to his trust account.