In 1995, Carter was charged with an ethical violation involving allegations of dishonesty and favoritism in handling a civil matter. Judge Juan R. Torruella, then Chief Judge of the United States Court of Appeals for the First Circuit, required Carter to explain his actions. Carter issued a 21-page statement attempting to justify his actions.[4] Ultimately, Carter was found to have used poor judgement and acted inappropriately in the matter, but did not commit an ethics violation and was not sanctioned.[5]