PETALING JAYA: They were supposed to ensure their clients’ best interests, but some rogue lawyers have swindled 167 of them to the tune of RM160.1mil in the last four years.
Since 2021, 113 men and 54 women have been cheated by such lawyers, be it in managing their funds or through property deals, said Comm Datuk Seri Ramli Mohamed Yoosuf.
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“In 2021, we recorded 39 cases of criminal breach of trust (CBT) involving lawyers, with losses reaching RM56.3mil, followed by 30 cases with RM11.7mil in losses in 2022 and 35 cases in 2023 involving RM29.7mil in losses.
“Last year, 62 cases were recorded – the largest amount of losses so far in a year at RM62.8mil.
“As of Jan 15, a case with RM92,000 in losses has already been recorded.
“So, in the last four years, losses involving crooked lawyers have reached RM160.19mil,” the Bukit Aman Commercial Crime Investigation Department (CCID) director told The Star yesterday.
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Comm Ramli said the police have detained 53 lawyers involved in CBT since 2021.
“A total of 167 victims have been swindled by crooked lawyers since 2021. Those aged above 60 is the largest aged group victimised at 42, followed by those aged 41-50 (39), 31-40 (35), 51-60 (34), 21-30 (16) and one from the 15-20 age group.
“The victims’ occupations ranged from businessmen and teachers to retirees and others working in the private sector,” he added.
Comm Ramli said an example of lawyers swindling their clients would be in mismanaging their funds.
“A dishonest lawyer might use funds or assets belonging to clients for personal use.
“We had a case in September last year where a 47-year-old female company director lodged a report that a law firm in Kuala Lumpur had duped her.
“She had hired the firm to manage four civil suits against her. In early 2023, the courts issued a Mareva injunction against her assets,” he said.
(A Mareva injunction is a court order which effectively freezes the assets of a defendant to prevent them from being disposed of, pending the outcome or completion of a legal action.)
“The suspect, who is the firm’s owner, offered to transfer her assets and cash temporarily to the firm while the civil suits were going on.
“She then transferred her funds and luxury items worth RM19mil to the suspect. However, towards the end of 2023, she decided to no longer retain the lawyer’s services and asked the suspect to return her cash and valuables.
“The suspect failed to do so and gave various excuses, leading the victim to suspect he had misused her funds and assets,” he added.
Another victim was a 51-year-old property consultant who lost RM833,473, said Comm Ramli.
“He lodged a report in Johor on Aug 6 last year. In 2013, the victim had hired a law firm as a stakeholder to receive service fees charged to his clients. A bank account under the law firm’s name was created, and RM833,473 in fees were transferred to the account.
“In 2017, the victim was investigated and charged by the Malaysian Anti-Corruption Commission (MACC) and the bank account was frozen. However, the victim was acquitted in May last year, and the account was unfrozen.
“In June last year, the victim demanded that the law firm return his funds, but they failed to do so. In fact, in July, the lawyer claimed to be having financial troubles,” he said, adding that both cases were investigated under Section 409 of the Penal Code for CBT.
Comm Ramli said the police are seriously looking at CBT cases involving lawyers.
“While the number of cases seems small, the losses suffered by the victims are quite significant.
“A criminal act committed by a professional individual, entrusted to safeguard funds or assets, should not happen,” he said.
While the police will focus on enforcement, Comm Ramli urged the Bar Council to review procedures, work processes, their ethical code and other aspects to close any loophole that could be exploited, to curb and prevent such cases from occurring.
“We had a few meetings and discussions with the Bar Council, and we hope they are making improvements.
“Such efforts are crucial to ensure clients are not victimised,” he said.
Stricter enforcement by the authorities and disciplinary action by the Bar Council against lawyers who have committed offences must be consistent, he added.
“This includes scheduled audits on funds management and documents handled by lawyers to ensure no abuse is occurring.
“A simple-to-use reporting system must be provided to enable clients or a third party to report any wrongdoing or suspicious behaviour by a lawyer,” he said.
Comm Ramli also called on the Bar Council to take sterner disciplinary action against lawyers who go against their professional ethics.
“Those convicted of fraud or CBT must be handed a heavy punishment such as suspension or revocation of their licence to practise law,” he said.
Comm Ramli said awareness and education for clients on their right to legal services are also important.
“Clients must be given detailed explanations such as ways to check the background of their lawyer and ensure they are choosing one registered with the Bar Council.
“They must also understand the legal agreements they are signing,” he added.
