Assessment 1 - Professional Legal Conduct
Storyboard Text
- Hi Robert, I am here regarding my Purchase settlement which is due to settle next week. I am going away and need to telegraphically transfer the settlement funds to your trust account. I need to know roughly how much you need for the settlement and also your Trust Account details so I can do a telegraphic transfer today.
- Thank you Susan. I have calculated that we will need $250,000 to do the settlement including costs, transfer duty and the balance owing to the Seller with adjustments. I will have our receptionist provide you with our Trust Account details on your way out. Please let me know once you have made the transfer.
- Susan called later in the day to confirm that she had done the telegraphic transfer using the reference S.Betts. Robert checked the trust account and receipted the cleared funds and entered on the client ledger card. Later in the day Robert decided to write a Trust Cheque in favour of his friend as temporary payment of an outstanding debt . He forged the Solicitor's signature on the Trust Cheque. He did not record any matter details on the cheque butt other than the amount and the payee details. The cheque was not recorded on any client ledger card.
- Hi Steve, there is an irregular payment that was made from the Trust Account yesterday. A cheque was drawn in the sum of $10,000 however, there are no client details on the cheque butt. It appears to have been done by Robert the junior solicitor. As the only signatory on the Trust Account did you sign a Trust Cheque yesterday?
- Hi Doreen, what can I help you with today.
- No Doreen, I did not sign any Trust Cheques yesterday. I will speak to Robert immediately.
- Steve, I borrowed the money to pay a debt until some other funds of mine had cleared. I was going to repay the money in a couple of days. I was only borrowing the money for a short period of time. The funds were not required for the settlement until later in the week by that time the funds would have been returned and cleared in readiness for settlement. I didn't think there was an issue with me doing this. I did not write the payment up on the client ledger card.
- Robert, I have been advised by Doreen, our accountant, that there has been an irregular payment of $10,000 from the Trust Account. A cheque was made out to an unknown party in the sum of $10,000. There are no client or matter details on the cheque butt. Also, I did not sign any Trust Cheques yesterday. Do you know anything about this?
- Robert, we have a duty to be thoroughly conversant with the relevant rules of the legislation that regulate the operation of trust accounts. You have breached the Legal Profession Act and your behaviour constitutes unsatisfactory professional conduct. I have no option but to terminate your employment immediately and report your conduct and the trust account irregularity to the Queensland Law Society.
- Robert, I have no choice but to terminate your employment and I have an obligation to the Queensland Law Society to report the incident for further investigation. Please pack up your belongings.
- Steve, I apologise for this and it will never happen again. I will be struck off the solicitors role if you report this to the Queensland Law Society meaning I have wasted the last 5 years of hard work and study. Please reconsider.
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