WARNING TO SOLICITORS.

Otago Witness, Issue 3714, 19 May 1925, Page 32

WARNING TO SOLICITORS.

AUDIT OF TRUST ACCOUNTS. WELLINGTON, May 15. A warning to solicitors that they must have their trust accounts audited in accordance with the provisions of the Law Practitioners Act was issued in the Magistrate’s Court to-day, when for failing to comply with the regulations in this connection, William John Organ, holioifor, of Wellington, was fined £SO by Mr C. R. Orr-Walker, S.M. This particular case, it was stated, was purely one of negligence. According to Mr Tudhope, who appeared for the. Crown Law Office, it was necessary for solicitors to have their trust accounts audited by June 7. The minimum penalty provided by tho Act was a fine of £SO. “tine would expect,” said Mr Tudhope, “that alt solicitors would comply with these regulations, and as a matter of fact tho majority of them do. There are, however, some 30 or 40 who havo given trouble for years. I would like these solicitors to take notice that in future offenders are to be prosecuted without warning.” Counaol added that it was a serious matter for a solicitor to be prosecuted as the proceedings were thus given a more serious aspeot than they actually merited. Hie present

defendant had been very negligent, and had put the authorities to a great deal of trouble. Counsel for th© defendant said that there was no suggestion of impropriety. His client had merely been negligent. In imposing the minimum penalty of £SO, the Magistrate remarked that he could not understand why solicitors did not comply with the regulations. The mere fact that the man was before the court for failing to have his trust account audited, would give the general public the impression that there was something wrong and that the defendant was afraid to “face the music.” In the present case, however, it was quite clear that there was nothing in it but sheer neglect. Very often when the law was not enforced, those whose conduct it was intended to supervise, became still more negligent. The department, however, had issued its warning that in future cases offenders would be immediately prosecuted.