Attorney and Lexington Chief Magistrate Judge John Rakowsky will have to answer charges in a Nevada lawsuit that he misappropriated funds from his trust account intended for legal expenses in the Southern Holdings case.

The action, Case No. 2:12-cv-02161-GMN-CWH, was brought by Center for Legal Reform (CLR), a Nevada Non-profit Corporation as successor in trust to Resolution Settlement Corporation (RSC), a former Nevada corporation.

The suit brings four causes of action, Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, Intentional Misrepresentation and Conversion of Property.