SOLICITOR’S LAPSE

Hokitika Guardian, 15 July 1932, Page 6

SOLICITOR’S LAPSE

MISAPPROPRIATED TRUST FUND

AN EPIDEMIC OF DISHONESTY

SYDNEY, July 13

Sydney seems to have been suffering in recent years from an epidemic of dishonesty or “misfortune” among the members of the legal profession. The case of William Clegg, involving many thousands of pounds held in trust for clients, has already been disposed of, at least in part, by . the courts. By the way, Mr Clegg seems to have exasperated some of his clients by mentioning to the Registrar, as proof of hits anxiety’ to fulfil his trust honorably, that he had called on a. clergyman to ask for “spiritual guidance'’ just before the crash came.

An examination in bankruptcy in the estate of E. K. Bowden recently revealed that Bowden, Senior, had used some £6OOO- of trust funds, that hie son, an ex-Minister of the Crown, finding that the defalctions had grown to £IB,OOO, tried to cover the matter up in the hope of making good, and that the grandson, a young lawyer, having felt compelled to shoulder tlie family burden thus entailed upon him has how to face the consequences.

A fortnight ago L. G. Blaekmore, a well-known Sydney solicitor, was arrested, and charged with miriippro'riation of . £2500, and ■ his case is still being investigated. The other day A. M. Davies, another well-known solicitor, committed suicide, and when his creditors met, they , found that he had assets of £2OO against liabilities of £43,000. How his clients stand has not vet been disclosed. :

But these are only a few illustrastions of the financial insecurity which seems to have overshadowed the legal profession here of Tate.. Not long once a solicitor who was struck off die rolls for misappropriation of clients’ money told the Registrar that he could not trace about £12,000 of trust funds because he had .taken his books home and burned them to ashes —by, a stupid mistake! This sort of thing does not exactly’ encourage public confidence in legal trusteeship. A short time , ago one paper estim L •ited that “at. least £250.000 in trust fund has been squandered in the last eighteen, months by solicitors whose ’flairs have been the subject .of bank-. / iptcv proceedings.” Apparently ;here is no system of ..periodic audit cor trust funds here, vsuch as exists in New Zealand, and it is evidently, high time that precautions, of this sort should be taken to. secure the interest and , protect. the, dignity and prestige of the leg°l profession.