Lawyer Censured For Depositing Client's Money Into Wrong Account

Source : The Straits Times, Aug 3, 2007

A LAWYER, who took responsibility for his secretary's mistake in depositing clients' money into the wrong bank account, was censured on Friday for the mistake by a Court of Three Judges.

Mr Tan Chwee Wan, a lawyer since 1990 and who is now an in-house legal officer, also undertook not to practice as a sole proprietor for two years.

A disciplinary committee had found his case serious enough to be referred to the panel, which has the power to suspend or strike him off the roll.

Chief Justice Chan Sek Keong, who presided over the hearing, noted however, that while Mr Tan was careless, he was not dishonest and had not made off with his clients' money.

CJ Chan noted that as soon as the mistake was discovered, Mr Tan immediately took steps to make good.

The wrongdoing took place in 2004, when Mr Tan, then a director of law firm JHT Law Corporation, received a $33,190 cheque from his clients as deposit for a flat.

Under the Solicitors' Accounts Rules, which govern how lawyers handle their finances, clients' money for transactions have to be held in a separate bank account.

But Mr Tan's secretary mistakenly deposited the cheque into the firm's account.

A month later, $30,920 was withdrawn from the client account, under the belief that the money had been kept there.

The mistake was discovered at a directors' meeting eight months later. The next day, the funds were returned to the client account.

However, Mr Tan's colleague reported this to the Law Society so that the other directors would not get into trouble for non-disclosure.

In pleading for a light sentence on Friday, Mr Tan's counsel, Mr Chandra Mohan, said that he was sorry for failing to supervise his staff.

It was a genuine mistake, Mr Mohan argued, and there was no loss to any client.

Mr Tan voluntarily left the practice in March 2005 as a 'self-imposed punishment'.