Article Index
Articles by Topics: Dishonesty
Circular No 045/2023
Dated 23 Feb 2023
The Bar Council has recently been made aware of a series of embezzlements that have been perpetrated by law firm support staff. This information was conveyed to us by the Advocates and Soli...
09 December 2022
, by Randy Emanuel Dias, Officer, Bar Council Professional Indemnity Insurance and Risk Management Department
In 2022, there were four notifications made to the Insurer regarding the embezzlement of client account monies by staff of law firms.
In these cases, the monies were embezzled by the conveyancing or accounts clerks and, in one instance...
24 July 2021
, by John Kunzler, Marsh Placement Specialist
There are various terms used around information security. Cyber security, for example, may sound like the stuff of science fiction or, to some, the stuff of scaremongering or sales pitches. Whatever terms are used, the objectives are esse...
15 July 2021
, by Murad Ali bin Abdullah, Advocate & Solicitor
Keywords: "Partnership Act"
A law firm can come into being in compliance with the Legal Profession Act 1976. As a sole proprietorship. As a partnership. And in near future even as a Limited Liability Partnership-Incorporated.
Partnership practice often comes...
15 July 2021
, by Dennis Goh, Manager, Echelon Claims Consultants Sdn Bhd – Claims Administrator for the Malaysian Bar Mandatory PII Scheme
The word “stake” is in common parlance used to apply to any money to be disposed of, in accordance with what may happen in future, and whoever is in possession of the money is often described as a stakeholder.
Lawyers are frequen...
09 February 2021
, by John Kunzler, Marsh Insurance Broker
Sadly, we are all exposed to frauds and scams in our business and personal lives. On a UK website, ActionFraud, lists a large number of types of frauds and scams which have afflicted businesses of every type, including the following:
&nb...
25 January 2021
, by John Kunzler, Marsh Placement Specialist, Marsh JLT Specialty
Many of us, and many businesses, have a tendency to under-estimate the risk of being affected by fraud. The unfortunate reality is that more and more of us are being affected personally, whether by identity theft, cloning of a credit card, or a...
25 January 2021
, by Murad Ali bin Abdullah, Advocate & Solicitor
Keywords: "anti-money laundering", anti-terrorism
Investigation and prosecution against advocates & solicitors under the Anti-Money Laundering and Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (“AMLA”) is growing by the day. Charges and punishments under...
23 January 2017
, by Shafiq Sobri, Jardine Llyod Thompson Sdn Bhd
Keywords: "bank statement", "clients' account", "clients' accounts", "clinet account", "judgement in default", "judgment in default", non-equity, "partnership agreement", "sleeping partner"
Joffrey and Theon were the partners of Messrs Baratheon & Associates, the Insured Practice (“IP”). When Theon joined the partnership, there was no partnership agreement executed between the two. Instead, they
mutually agreed to a ver...
23 January 2017
, by Shafiq Sobri, Jardine Llyod Thompson Sdn Bhd
Keywords: "case study", "clients' account", partnership, "salaried partner", "salary partner"
Michael decided to set up his own law partnership known as Messrs Bluth & Finke, the Insured Practice (“IP”) with his long-time friend, Lindsay. Michael managed the main office in Petaling Jaya while Lindsay managed the Firm’s b...
23 January 2017
, by Shafiq Sobri, Jardine Llyod Thompson Sdn Bhd
Keywords: "clients' accounts", "Deed of Dissolution", "Originating Summon", partnership, property
Emily and Victoria were the founding partners of Messrs Grayson & Co, the Insured Practice (“IP”). After some
time in the partnership, there were some disagreements about the Firm’s business plan, eventually driving a wedge bet...
23 January 2017
, by Shafiq Sobri, Jardine Llyod Thompson Sdn Bhd
Keywords: "clients' accounts", "Disciplinary Board", "Memorandum of Transfer", newly-formed, partnership, "stamp duty"
Alexis began her legal career as a legal assistant at Messrs Morello & Associates where she befriended Piper, a senior legal assistant at the firm. When Piper left Messrs Morello & Associates to set up her own firm, Messrs Chapman & Co, A...
23 January 2017
Keywords: "Letter of Demand", "vacant possession"
Messrs Underwood & Partners, the Insured Practice (“IP”) was established in 1996. The Firm’s main office in Petaling Jaya was managed by Frank and the branches in Ipoh and Johor Bahru were managed by Claire and Douglas respectiv...
23 January 2017
, by Shafiq Sobri, Jardine Llyod Thompson Sdn Bhd
Keywords: "clients' accounts", partnership, "sole proprietor"
After several years of practice, Max, a legal assistant at Messrs Channing & Associate, the Insured Practice (“IP”) was offered to be a partner of the Firm by Caroline, the sole proprietor of the Firm at that time. Max had been handli...
15 June 2016
, by Shafiq Sobri, Jardine Llyod Thompson Sdn Bhd
Keywords: "innocent partner", misconduct, partnership
A law partnership is normally formed with the best intentions in the partners’ minds. They believe they have each found someone trustworthy and someone who shares the same professional goals and personal interests. Partnerships are also formed ...
22 February 2016
, by Shafiq Sobri, Jardine Lloyd Thompson Sdn Bhd
Keywords: "Case Study", Communication, "Firm Management", "Practice Management", "Stakeholder Duty"
Lawyers who become stakeholders in conveyancing transactions have a duty to hold the monies or documents deposited to them on behalf of either the vendor or the purchaser until the conclusion of certain transactions.
In Toh Theam Hock v Kemajuan...
07 August 2015
, by Loong Sheng Li, Jardine Lloyd Thompson Sdn Bhd
Keywords: "Clients’ Account", "managing partner"
Every fortnight at Kerry & Associates, partners of the firm would select clients’ files at random to check if there are any discrepancies in them. This practice acts as a risk management measure to find any discrepancies in a file as well a...
07 August 2015
Keywords: "blank cheques", "clients' account", "Legal Profession Act", "office account", "office and clients' account", presigned, pre-signed, "sole signatory", "Solicitors’ Account Rules", "stake holding", stakeholder
Messrs King & Partners was established in 2007 by Anna King and her partner, Henry. In 2009, Anna decided to further her studies in Australia, leaving the firm under the care of Henry and their accounts clerk, Teri.
As part of checks and balan...
07 August 2015
, by Loong Sheng Li, Jardine Lloyd Thompson Sdn Bhd
Keywords: "client account", "clients' account", "financial loss", SAR, "Solicitors’ Account Rules", "trust fund"
Jack Alastair, the sole proprietor of The Law Chambers of Alastair, notified Insurers of a possible employee embezzlement in his law firm. In his notification, Jack apprises that his account's officer, Elena, had committed criminal breach of trus...
02 July 2014
Keywords: Technology
Facts:
It has come to the Bar Council’s attention that a legal firm recently received a bogus phone call purporting to be from a reputable software company’s customer service. The bogus caller had full details of the legal firm&rsq...