The High Court has frozen the assets of and suspended a solicitor whom it is alleged has €900,000 missing from his firm’s client accounts.
Mr Justice Peter Charleton today made various orders against solicitor Declan J McEvoy after being informed the Law Society's Fitness to Practise Committee had formed the view the solicitor had acted dishonestly.
The Law Society sought freezing orders against Mr McEvoy after its investigating accountants discovered a deficit of €900,000 in the client accounts of the two firms of which he is principal -William Early Solicitors Haymarket, Carlow and JM McEvoy & Co, the Avenue, Gorey, Co Wexford.
The judge granted orders suspending Mr McEvoy from practising as a solicitor. He further ordered Mr McEvoy not to dispose of any assets in his possession and that no bank should make a payment out of any account in his or his firm's name.
Solicitor Kevin O'Doherty, for Mr McEvoy, a solicitor for almost 20 years, said his client was not opposing the proceedings.
The court heard that Mr McEvoy had confirmed at a meeting with the Law Society last week that monies had gone missing and he was fully co-operating with the society.
Paul Anthony McDermott, for the Law Society, said Mr McEvoy's difficulties arose out of claims against JM McEvoy & Co, which he bought from his father a few years ago. A mortgage Mr McEvoy obtained on a property that he did not own, which was subsequently sold, also added to his problems.
Further investigations of the practises are required to determine where all the money has gone. Counsel added that to his credit Mr McEvoy fully accepted the investigative accountant's findings and was co-operating.
In an affidavit Seamus McGrath, the senior investigation accountant with the Law Society, said inquiries carried out last month revealed a deficit in William Early's client account of €500,000 and a €133,000 deficit in JM McEvoy & Co's client account.
Mr McGrath said Mr McEvoy, though the William Early firm, acted for his mother Angela McEvoy and his sister Claire Swords in relation to the sale of a house they owned in Castleknock, Dublin.
Mr McEvoy obtained an apparently unregistered mortgage on that property of €297,000, notwithstanding the fact he did not own it. The house was subsequently sold for €303,000 and the proceeds of that sale were credited to the solicitor's own account.
Mr McGrath said that Mr McEvoy's actions had the effect of increasing the client account deficit by at least another €297,000 leaving a total of €900,000. In addition Mrs Swords submitted a claim to the Solicitor's Compensation fund for her 50 per cent share of the proceeds of the house sale.
Mr McGrath also stated in his affidavit that large sums of money in client accounts held by the William Early firm were credited to an account in Mr McEvoy's name. The client funds were disbursed and it was not possible to establish the beneficiary of these funds.
Monies at JM McEvoy were diverted to make payments to unrelated third parties. Funds were also drawn down from the client account at that firm to support the office account. Seven unstamped deeds were identified at the Gorey firm, whose exposure to Revenue is estimated to be in excess of €150,000.
Mr McGrath added Mr McEvoy admitted making a number of payments from the client account to Revenue in respect of liabilities owed by clients. He also used money from the account to to pay for the firm's professional indemnity insurance, to support an office overdraft, and for barrister's fees.
Mr Justice Charleton adjourned the case and made it returnable before the High Court to a date in early October when the new law term commences.