Two fresh lawsuits are putting San Antonio attorney Edward Valdespino under an unforgiving spotlight, accusing him of using lawyer trust accounts to pull in millions from investors who say they were promised extraordinary, lightning-fast returns that never arrived. One federal complaint says a New York couple wired $1 million into Valdespino’s Interest on Lawyers Trust Account, or IOLTA, after being told it would grow tenfold in about 45 days. A separate Bexar County suit seeks the return of $5 million tied to a private deal that never closed. Together, the claims have triggered emergency court action and stirred new questions about how closely attorneys’ escrow accounts are policed.
Federal Complaint Says Couple Wired $1 Million To Trust Account
The Wyses, Kevin and Holly, say they were introduced in 2025 to an Ontario businessman who was pitching a private placement through Lark Renewable Energy. According to their federal complaint, they were urged to wire $1 million into Valdespino’s IOLTA trust account to participate.
The lawsuit alleges that on a Microsoft Teams call on December 29, Valdespino personally vouched for the program. The escrow agreement, the complaint says, named him as the escrow agent and listed his firm’s San Antonio office as the escrow location. The investment was supposed to return roughly $10 million in 45 days, as reported by the San Antonio Express-News. That payoff never came, according to the suit.
State Case Leads To Judge Ordering $5 Million Held
In a parallel fight in state court, Boca Raton-based I.C. Deposits Development Inc. filed a Bexar County lawsuit saying it transferred $5 million to Valdespino as escrow for a private deal and that the transaction never closed. A visiting judge responded with a temporary injunction that gave Valdespino until 11 a.m. Thursday, May 14 to deposit $5 million with the court registry or face contempt.
“We are very concerned that there is a fraud that is going on,” I.C. Deposits’ lawyer Kelli Cubeta told the court. The complaint says the funds should have been returned months earlier, according to the San Antonio Express-News. That same report notes earlier disputes tied to Valdespino, including a 2021 suit over more than $1.6 million and a September 2025 claim that was settled in April 2026, details plaintiffs say point to a recurring pattern.
Firm Ties And Trust-Account Rules
Valdespino is listed as “Of Counsel” in the San Antonio office of Naman, Howell, Smith & Lee. The firm has said it had no involvement in the Wyses’ investment and that any conduct at issue was “of his own accord.”
Lawyer trust accounts such as IOLTA are specifically designed to keep client or escrow funds separate from a lawyer’s own money and are subject to strict Texas rules. Guidance from the Texas Access to Justice Foundation and A Lawyer’s Guide to Client Trust Accounts explains that misuse can trigger audits, civil lawsuits, and disciplinary action. If courts ultimately find the funds were misapplied, plaintiffs could press civil claims while bar counsel weighs whether professional discipline is warranted.
What’s Next
The Wyses are asking a federal judge for protections aimed at preventing their money from being moved, while I.C. Deposits’ state case has already produced an injunction that could steer $5 million into the court’s registry. If Valdespino deposits the money by the court-ordered deadline, the immediate freeze could ease, but both lawsuits are poised to move into discovery as plaintiffs work to trace transfers and identify any other investors.
The ongoing litigation may lead to additional filings or claims from other parties and could draw attention from regulators who monitor attorney trust accounts.
