TRUST FUNDS

Otago Witness, Issue 3524, 27 September 1921, Page 6

TRUST FUNDS

ALLEGED MISUSE BY SOLICITOR. AUCKLAND. September 20. “He has been most candid and most helpful since matters came to a crisis,” declared Mr 11. P. Richmond, president of the Auckland Law Society, at the Supreme Court to-day when dealing with the case of Arthur Cracknell. the surviving partner of the legal firm of Hammond and Cracknell, of Auckland. The matter before the, court, his Honor Air Justice Adams presiding, was an application by the Law Society for a rule nisi calling upon Cracknel! to answer certain allegations, and show cause why he should not bo struck off the rolls of solicitors, or suspended from practising as a solicitor. Cracknell had signed the following solemn declaration, conscientiously believing same to bo true; —“I, Arthur Cracknel), of Auckland, solicitor, do solemnly and sincerely declare —(1) I was a member of the firm of Hammond and Cracknell, solicitors, practising at Auckland. (2) The said firm received from Messrs Mahony. Sons, arid Dignan, solicitors, on behalf of Oliver Heed, of Auckland, retired farmer, the sum of £3OOO. (3) That the firm used this money for its own private purposes, and failed to use it for the purposes for which it was obtained. (4) Thai this use was without the knowledge or consent of the said Oliver Reed. (5) That there were many other similar cases of obtaining and using of clients’ trust funds. (6) That this use of clients’ trust moneys was made with the knowledge and consent, of both partners in most ea=es. (7) That there is now in the trust, account of the firm a sum not exceeding £250. (8) That funds of clients, amounting to at least £IO.OOO have been so misapplied by the said firm of partners t hereof.” Other affidavits alleged tlial Cracknell wag sworn, admitted, and enrolled at Auckland ,as a solicitor on May 20. 1912, and that on September 6, 1921, he frankly admitted that he had been guilty of breaches of trust in connection with the trust; account of the late firm, and further, that on September 14. 1921. lie was adjudicated a bankrupt on an application by the Law Sociotv, which raised allegations against Cracknell "in terms of liis declaration, adding that neither Cracknell nor the firm of Hammond and Cracknell lidd since accounted for trust moneys to persons entitled to (hem. A rule nisi was granted, calling upon Cracknell to appear before the Auckland Supreme Court on Tuesday, September 27. to answer th.o allegations, or be struck off the rolls or suspended from practise.