Investors Demand Government's Help To Recover Funds

Clients of a shuttered law firm are demanding help from the government, saying they've suffered losses totalling HK$100 million after the Law Society froze the firm's accounts.

In a rare intervention on December 24, the Law Society stepped in to suspend the operations of Wong, Fung & Co., whose former clerk was said to have misappropriated money belonging to its clients.

The society's governing council found that the firm had committed serious breaches of lawyer accounting rules.

Around a dozen of the 79 affected clients held a press conference on Sunday, saying each had experienced losses ranging from HK$500,000 to over HK$10 million.

They said no guidance had been given on how they could get back their money.

The law firm, one of Hong Kong's biggest, specialises in conveyancing.

One client, Michael, works in finance and said his more than HK$8 million mortgage released from the bank was still in the law firm's accounts.

He criticised the Law Society for its lack of information and planning on how to handle the case.

"Not only potential home buyers or sellers, even some lawyers in this industry didn't know what is going to happen next... who should they complain with," said Michael.

The investor said he was surprised that such a case happened in Hong Kong, where there is a huge property market that was supposed to be well-protected by the law.

"It happens in a law firm which took the largest market shares in Hong Kong, and just because a regulated body says you have to stop, then you have to stop," said the investor.

"They are not suspending, they are terminating the (firm's) operation!"

He suggested a special committee be set up by relevant bodies so those who suffered know where to seek help.

Another law firm, Chui and Lau, has been appointed as the intervention agent.