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ROGUES GALLERY: Lawyer who spoke at Holyrood on behalf of Law Society – struck off for dishonesty, meanwhile concerns Police probe at bust law firm Ross Harper may hit Crown Office block on prosecuting colleagues in legal profession

25 Sep

Rogue lawyers & Police probes dog Scots legal industry. A LAWYER who gave evidence to MSPS on behalf of the Law Society of Scotland has been struck off – for serious dishonesty – after earlier findings of professional misconduct a year earlier.

Michael McSherry, who once gave evidence to the Scottish Parliament’s Justice & Home Affairs Committee on Vulnerable and Intimidated witnesses – was struck off by the Scottish Solicitors Discipline Tribunal (SSDT) after being found guilty of professional misconduct in relation to misrepresentation to two law firms on the purpose of funds being held, and failures to carry out proper money laundering checks.

The findings issued by the Discipline Tribunal also reveal a former solicitor, listed as ‘Ms B’ worked for McSherry.

The unnamed solicitor recently had her practising certificate removed by the Law Society of Scotland, yet she was easily able to find employment back in the legal services sector and began working with McSherry.

While the name of the solicitor is anonymised, the latest incident again reveals a trend where crooked lawyers who are turfed out of the profession land jobs as ‘consultants’ or ‘paralegals’ following them being stripped of their right to practice law.

McSherry was previously found guilty of professional misconduct in 2016 for failing to bank fees taken from clients, and his continuing to act on behalf of the client in his capacity as a solicitor when he was not the holder of a practising certificate, was not affiliated to any practising firm of solicitors and had no professional indemnity insurance cover. Law Society of Scotland v Michael Thomas McSherry (21 January 2016)

The latest Scottish Solicitors Discipline Tribunal findings on Michael McSherry, recently published – are here:
Law Society of Scotland v Michael Thomas McSherry (27 June 2017)

The full document listing the SSDT findings on Michael McSherry is here: SSDT Findings: Law Society of Scotland v Michael Thomas McSherry (27 June 2017)

Solicitor(s): Michael Thomas McSherry, Solicitor, 51 Morven Road, Bearsden, Glasgow

Tribunal Date: 27/06/2017 Appeal Status:No Appeal

Interlocutor: Edinburgh 27 June 2017.  The Tribunal having considered the Complaint at the instance of the Council of the Law Society of Scotland dated 11 April 2017 against Michael Thomas McSherry, Solicitor, 51 Morven Road, Bearsden, Glasgow; Find the Respondent guilty of professional misconduct singly in respect of his misrepresentation to Mr D about the purpose for which funds were held (issue 1), the improper, incomplete and inaccurate recording in the client ledgers (issue 2), and his misrepresentations to Slater, Hogg and Howieson and TLT Solicitors (issues 6 and 7); and in cumulo in respect of his failure to carry out proper money laundering checks on Company 1 and Mr C (issues 3 and 5), his failure to investigate the source of funds from Mr D (issue 4), his poor record-keeping and accounting practices (issue 8), his failure to reconcile bank statements (issue 9) and his failure to undertake training in connection with his role as cashroom manager (issue 10);  Order that the name of the Respondent be Struck Off the Roll of Solicitors in Scotland; Direct in terms of Section 53(6) of the Solicitors (Scotland) Act 1980 that this order shall take effect on the date on which the written findings are intimated to the Respondent; Find the Respondent liable in the expenses of the Complainers and of the Tribunal including expenses of the Clerk, chargeable on a time and line basis as the same may be taxed by the Auditor of the Court of Session on an agent and client, client paying basis in terms of Chapter Three of the last published Law Society’s Table of Fees for general business with a unit rate of £14.00; and Direct that publicity will be given to this decision and that this publicity should include the name of the Respondent but need not identify any other person.

And, it has also been reported in the media that a Police Scotland probe has been launched into the now bankrupt law firm – Ross Harper.

However, as observers to the ‘twilight zone’ world of Police investigations into lawyers will be well aware, most probes carried out by Police almost never result in a prosecution before the courts, as has previously been the case in relation to multiple cases involving fourteen law firms & millions of pounds of legal aid fraud – which resulted in not one case going to court, reported earlier here: FOURTEEN lawyers accused of multi-million pound legal aid fraud escape justice as Scotland’s Crown Office fail to prosecute all cases in 5 years

The Sunday Mail reports on the Police Scotland probe of bust law firm Ross Harper:

Cops launch cash probe into bust law firm Ross Harper and Co after partners struck off

The company had offices across Scotland before they were shut down in 2012 after operating for more than 50 years.

By Craig McDonald 06:00, 17 SEP 2017

A police investigation has been launched into the collapse of one of ­Scotland’s top law firms.

Ross Harper and Co, who had offices across Scotland, were shut down in 2012 after more than 50 years in practise.

It emerged that public cash claimed in Legal Aid fees was not paid to ­suppliers and experts hired by the Glasgow firm.

A lengthy probe by the Law Society of Scotland led to four partners being struck off and two more being censured.

We can reveal a dossier has now been passed to police, who have launched a criminal investigation.

The Mail understands the initial focus is on former ­senior partner Alan Miller, 38, who was struck from the roll of solicitors last month.

One expert witness hired by the firm welcomed the probe. Forensic psychologist Ian ­Stephen, who’s owed £5000 in fees, said: “I think it’s appropriate that police investigate.

“If anyone commits a crime, be it fraud or anything else, then you would expect police would make inquiries into it.

“If this happened in any other profession, the appropriate ­professional body would make inquiries and, if there was a criminal element to it, you would expect police to become involved.

“I don’t not see how the ­situation should be any different for solicitors.”

Stephen, a former senior medic at the State Hospital at Carstairs, said: “I felt badly let down by Ross Harper. You should be able to put your faith in a lawyer.

“I was always writing to them to ask why I was not being paid. I was shocked they were so ­blatant about it.”

Professor Hugh Pennington saw £4000 in fees go unpaid.

The bacteriolgoist said: “I was shocked to ­discover Ross Harper were ­withholding payments from me and others. There has been a betrayal of trust.”

Miller and Jim Price, also a senior partner, were struck off last month by the ­Scottish ­Solicitors ­Disciplinary Tribunal for professional misconduct.

Price was employed as general manager of Nottingham Forest in 2013 but left the football club within a year.

Two further partners, Paul McHolland and Joseph Mullen, were censured by the SSDT but are still able to practise.

The SSDT found Legal Aid cash lay in “a drawer”, the firm’s bank account, for up to two years.

The cash was used to help them ­balance their books after the 2008 financial crash.

Accounts also showed a cheque was cancelled and ­reissued three times before it reached its destination.

On at least two occasions, the same tactic was used to hold up payments of £300 to Pennington.

We told last month how legal watchdogs are facing more than £100,000 worth of claims from victims of the firm.

Any compensation would be paid from a Law Society client protection contingency fund.

Ross Harper had 12 offices in Scotland and were the country’s biggest earning Legal Aid firm, with 2006-07 earnings of £1.7million. They were founded in 1961 by ex-law professor Ross Harper.

A police spokeswoman said: “Inquiries are at an early stage.”

A Law Society of Scotland spokesman said: “Concerns were raised about the firm’s ­accounting record following one of our ­routine ­compliance inspections.

“This led to us going to the Court of Session to request the appointment of a judicial factor to the firm in April 2012 and, ­following investigation, we prosecuted all six former partners before the independent SSDT.

“We have a legal duty to report suspicious activity to the ­relevant authorities but cannot comment on whether reports have been made on specific cases.”

The SSDT decision on Ross Harper is here: Law Society of Scotland v-Alan Miller, Joseph Mullen, Paul McHolland & James Price

The full document detailing the SSDT’s findings in relation to the Ross Harper law firm partners can be found here: SSDT Findings: Law Society of Scotland v-Alan Miller, Joseph Mullen, Paul McHolland & James Price

Solicitor(s): Alan Matthew Miller, 22 Broomknowe Avenue, Lenzie, Joseph Mullen, 9 Glen Mark, St Leonard’s, East Kilbride, Paul John McHolland, 24 Portland Road, Kilmarnock and James Price, formerly residing at 2 Rigside, Douglas Water, Lanark and now residing at Calle Java 19, 29591, Malaga, Spain

Tribunal Date: 08/05/2017 Appeal Status:No Appeal

Interlocutor: Perth 8 May 2017.  The Tribunal having considered the amended Complaint at the instance of the Council of the Law Society of Scotland against Alan Matthew Miller, 22 Broomknowe Avenue, Lenzie, Joseph Mullen, 9 Glen Mark, St Leonard’s, East Kilbride, Paul John McHolland, 24 Portland Road, Kilmarnock and James Price, formerly residing at 2 Rigside, Douglas Water, Lanark and now residing at Calle Java 19, 29591, Malaga, Spain; Find the First Respondent guilty of Professional Misconduct in respect that (a) The First Respondent during his tenure as a Partner and principal in the said former firm of Ross Harper and in particular during the period when he was the designated Cashroom Manager being 1 April 2010 to 5 April 2012, operated a system or policy whereby the business of the former firm was improperly funded by payments due to third parties, whereby in particular, sums received from the Scottish Legal Aid Board and others were deposited in the firm’s bank accounts, and cheques were thereafter drawn on those accounts and purported payment of third parties outlays made which had been incurred on behalf of the former firm’s clients. Said system or policy resulted in sums validly due to Third Parties not being timeously paid.

Further, the firm, under the authority and direct instruction of the First Respondent, took unauthorised and excessive fees despite there being insufficient funds at the credit of the client ledgers to meet those fees and without having had any legitimate basis for taking fees at the point in which they were deducted from the client ledgers.  Said funds and fees were taken and rendered in a dishonest, wrongful and improper use of client’s funds without the knowledge or consent of the clients to allow the said firm to continue to trade and operate within the limit of its banking facilities. All of the foregoing in breach of the Solicitors (Scotland) Accounts etc. Rules 2001, the Code of Conduct for Scottish Solicitors, the Law Society of Scotland Practice Rules 2011: (b) The First Respondent submitted false and inaccurate Accounts Certificates to the Complainers thereby deliberately concealing from the Complainers the true financial position of the said firm; (c) The First Respondent acted dishonestly in reporting matters to the inspection team of the Financial Compliance Department of the Complainers, and that in breach of Rule B6.12 of the Law Society of Scotland Practice Rules 2011; (d) The First Respondent in his specific capacity as Designated Cashroom Manager between 1 April 2010 and 5 April 2012 failed to supervise the cashroom staff and cashroom systems to keep proper accounting records and that in breach of Rule B6.13 of the Law Society of Scotland Practice Rules 2011 and Rule 12 of the Solicitors (Scotland) Accounts etc. Rules 2001; (g)The First Respondent failed to settle invoices rendered by professional expert witnesses timeously, and that despite having received reimbursement of these sums from third parties;

Find the Second Respondent guilty of Professional Misconduct in respect that The Second Respondent during his tenure as a Partner and principal in the said former firm of Ross Harper acquiesced in the operation of a system or policy whereby the business of the former firm was improperly funded by payments due to third parties whereby in particular, sums received from the Scottish Legal Aid Board and others were deposited in the firm’s bank accounts, and cheques were thereafter drawn on those accounts and purported payment of third parties outlays made which had been incurred on behalf of the former firm’s clients. Said system or policy resulted in sums validly due to Third Parties not being timeously paid. 

All of the foregoing in breach of the Solicitors (Scotland) Accounts etc. Rules 2001, the Code of Conduct for Scottish Solicitors, the Solicitors (Scotland) (Standards of Conduct) Practice Rules 2008 and the Law Society of Scotland Practice Rules 2011;  Find the Third Respondent guilty of Professional Misconduct in that The Third Respondent during his tenure as a Partner and principal in the said former firm of Ross Harper acquiesced in the operation of  a system or policy whereby the business of the former firm was improperly funded by payments due to third parties whereby in particular, sums received from the Scottish Legal Aid Board and others were deposited in the firm’s bank accounts, and cheques were thereafter drawn on those accounts and purported payment of third parties outlays made which had been incurred on behalf of the former firm’s clients.

Said system or policy resulted in sums validly due to Third Parties not being timeously paid.  All of the foregoing in breach of the Solicitors (Scotland) Accounts etc. Rules 2001, the Code of Conduct for Scottish Solicitors, and the Solicitors (Scotland) (Standards of Conduct) Practice Rules 2008 and the Law Society of Scotland Practice Rules 2011; Find the Fourth Respondent guilty of Professional Misconduct in that (a) The Fourth Respondent during his tenure as a Partner and principal in the said former firm of Ross Harper operated a system or policy whereby the business of the former firm was improperly funded by payments due to third parties, whereby in particular, sums received from the Scottish Legal Aid Board and others were deposited in the firm’s bank accounts, and cheques were thereafter drawn on those accounts and purported payment of third parties outlays made which had been incurred on behalf of the former firm’s clients.

Said system or policy resulted in sums validly due to Third Parties not being timeously paid.  Further, the firm, under the authority and direct instruction of the Fourth Respondent as Joint Managing Partner, took unauthorised and excessive fees despite there being insufficient funds at the credit of the client ledgers to meet those fees and without having had any legitimate basis for taking fees at the point in which they were deducted from the client ledgers. 

The fees in these instances were deducted for the purposes of assisting the firm’s cashflow and financial position and to conceal the true level of the firm’s liabilities and overdraft. Said funds and fees were taken and rendered in a dishonest, wrongful and improper use of client’s funds without the knowledge or consent of the clients to allow the said firm to continue to trade and operate within the limit of its banking facilities. 

All of the foregoing in breach of the Solicitors (Scotland) Accounts etc. Rules 2001, the Code of Conduct for Scottish Solicitors, and the Solicitors (Scotland) (Standards of Conduct) Practice Rules 2008 and the Law Society of Scotland Practice Rules 2011; (b) The Fourth Respondent countersigned and submitted false and inaccurate Accounts Certificates to the Complainers thereby deliberately concealing from the Complainers the true financial position of the said firm; (c) The Fourth Respondent acted dishonestly in reporting matters to the inspection team of the Financial Compliance Department of the Complainers, and that in breach of Rule B6.12 of the Law Society of Scotland Practice Rules 2011; 

Order that the name of the First Respondent be Struck Off the Roll of Solicitors in Scotland; Direct in terms of Section 53(6) of the Solicitors (Scotland) Act 1980 that the order shall take effect on the date on which the written findings are intimated to the First Respondent; Censure the Second Respondent; Censure the Third Respondent; Order that the name of the Fourth Respondent be Struck Off the Roll of Solicitors in Scotland; Direct in terms of Section 53(6) of the Solicitors (Scotland) Act 1980 that the order shall take effect on the date on which the written findings are intimated to the Fourth Respondent; Find the Respondents jointly and severally liable in the expenses of the Complainers and of the Tribunal including expenses of the Clerk, chargeable on a time and line basis as the same may be taxed by the Auditor of the Court of Session on an agent and client, client paying basis in terms of Chapter Three of the last published Law Society’s Table of Fees for general business with a unit rate of £14.00 restricted in the case of the Second Respondent to 20% and in the case of the Third Respondent to 10%; and Direct that named publicity be given to this decision, declaring that such publicity shall not contain the name of the clients or otherwise identify them as the publication of their personal data is likely to damage individuals’ interests.

Alistair Cockburn Vice Chairman

Second Interlocutor:

The Tribunal having made findings of professional misconduct in respect of matters complained of by Thomas Aulds, ARM Architects LLP, 2a Berkeley Street, Glasgow; Dr Peter Thornton, 49 Carlogie Road, Carnoustie; Ian Stephen, 19 Glen View Crescent Gorebridge; The PRG Partnership, 111 Cowgate, Kirkintilloch, Glasgow; Ewa Daly, Pierwsza Pomoc Polscotia, St George’s Building, 5 St Vincent Place, Glasgow and David Bartolo, 2/52 Rallinson Road, North Coogee, Western Australia, appoints them if so advised to lodge statements of claim with the Clerk to the Tribunal at Unit 3.5, The Granary Business Centre, Coal Road, Cupar, Fife, within 21 days of the date of intimation hereof.

Alistair Cockburn,  Vice Chairman.

Compensation Interlocutor:

Glasgow,   21 August 2016.  The Tribunal having made a finding of professional misconduct against Alan Matthew Miller, 22 Broomknowe Avenue, Lenzie, Joseph Mullen, 9 Glen Mark, St Leonards, East Kilbride, Paul John McHolland, 24 Portland Road, Kilmarnock, and James Price formerly residing at 2 Rigside, Douglas Water, Lanark, and now residing at Calle Java 19, 29591, Malaga, Spain; Having allowed 21 days for the Secondary Complainers, Thomas Aulds, ARM Architects LLP, 2a Berkeley Street, Glasgow; Dr Peter Thornton, 49 Carlogie Road, Carnoustie; Ian Stephen, 19 Glen View Crescent Gorebridge; The PRG Partnership, 111 Cowgate, Kirkintilloch, Glasgow; Ewa Daly, Pierwsza Pomoc Polscotia, St George’s Building, 5 St Vincent Place, Glasgow; and David Bartolo, 2/52 Rallinson Road, North Coogee, Western Australia to lodge their claims for compensation;  Having received confirmation from Dr Peter Thornton that he does not wish to submit a claim for compensation and having received no correspondence from said Thomas Aulds, Ian Stephen, The PRG Partnership, Ewa Daly and David Bartolo within said 21 days; makes no further order and no further finding of expenses.

Alistair Cockburn, Vice Chairman

Previous reports on the Scottish Solicitors Discipline Tribunal can be found here: Cases of repeat offender rogue lawyers rise at Scottish Solicitors Discipline Tribunal

 

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