THE HIGH Court has suspended from practising and frozen the accounts of a solicitor who operated what was described as “a secret client account” that has a deficit of €1.2 million.
Yesterday Mr Justice John Hedigan, following an application by the Law Society, granted interim orders including freezing the bank accounts of the solicitor, who the court heard is a sole practitioner. The solicitor, who did not attend the hearing, was not named in court.
The court heard the society’s Regulation of Practise Committee had met on Tuesday and had come to the opinion that the solicitor had acted dishonestly. The orders also prevented the solicitor from disposing of any assets in his possession or within his procurement. The court made further orders including suspending the solicitor’s practising certificate, and that he hand over all his records and files to the society.
Paul Anthony McDermott, counsel for the society, said while it was uncertain what was happening, it appeared that the solicitor was involved with a mortgage broker where fake valuations of properties were given. It is thought that mortgages were obtained on foot of those valuations.
Counsel said it was not known where all of the money obtained in those mortgages was diverted to.
Counsel added that the matter was something that authorities other than the society should be investigating as the society had been unable to fully work out what was going on. All that was known was that the second account had a deficit of €1.2 million.
The court also heard that the society carried out an inspection of the solicitor’s files and of the solicitor’s client account in May of this year. Nothing of any great concern was found.
However, earlier this month the solicitor came to the Law Society and revealed the existence of a second “secret client account”, which had not been revealed previously. Mr McDermott said the solicitor went to the society after a client had threatened to make a complaint in relation to his handling of a mortgage.
Mr Justice Hedigan adjourned the matter to next Friday.