Law Firm Shut Down For Fund Misappropriation

The Law Society has shut down a law firm found to have misappropriated client funds.

After looking into allegations facing Wong, Fung and 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.

"The council was satisfied that the firm had committed serious breaches of the Solicitors’ Accounts Rules, including, among others, overdrawing on client accounts and allowing unqualified persons to be authorized signatories of client accounts," the society's vice president, Amirali Nasir, said.

The society made the rare move in intervening in the practice of the firm, effectively shutting it down.

President Melissa Pang said such intervention is a serious move that is only exercised in special circumstances in accordance with the law.

She said there's a need to protect the interest of clients, saying the society made the move as there's no other alternative.

The society refused to disclose the amount of money or clients involved. It has referred the case to the police.

Pang said the society will contact clients on the firm's records and offer them advice in finding other lawyers or lodging claims for their money back.

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