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Lawyers fined after crooked cashier flees to US
Jane Charnley SIX solicitors involved in a scandal at a former Hull law firm were yesterday fined for accounting breaches and another was reprimanded – but a colleague accused of fraud who fled to the United States escaped justice.
The Solicitors' Disciplinary Tribunal cleared the seven solicitors of deliberate dishonesty.
Kevin Rooney, who worked as a cashier for the law firm, Carrick Carr Wright, which is now closed, paid himself an unauthorised bonus to buy a luxury holiday villa.
But while he jetted off to the US, his former bosses were left to face the tribunal, where they had to admit breaches of solicitors' accounts rules, because as partners, they were liable, even if they were unaware what was happening.
The seven strenuously denied dishonesty, saying they had no idea of Rooney's actions.
The firm, one of Hull's biggest, with offices in Saville Street and branches in Beverley and York, was taken over by the Law Society in August 2002 amid suspicions of dishonesty, leaving some of the partners in serious financial difficulties.
Rooney, of Hedon, near Hull, could not cope with running the finances of a big legal practice and broke a series of rules.
The partners were cleared of any deliberate deception, but Rooney was "effectively described as a thief" and barred from working as a clerk if he ever returns to Britain.
Geoffrey Williams, for the Law Society, claimed the seven knew the firm was heading for disaster. By the time it was taken over it had liabilities of more than 1m. He also claimed the partners knew Rooney was crooked but he was allowed to keep his job.
But the partners insisted they were not directly to blame, and the tribunal accepted their accounts.
John Wright, 58, of Sutton, near Hull, was fined 7,500, Philip Goodall, 47, of Selby, 3,500, Michael East, 56, of Hornsea, 3,500, David Prescott, 38, also of Hornsea, 3,000, Paul Scott, 45, of York, 2,500, and Malcolm Grassam, 54, of Beverley, Grassam 1,000. Jonathan Carr, 56, of Hull, was reprimanded.
Senior partner Wright, was a former chairman of the local law society.
Since the firm's collapse he went into voluntary insolvency, had to sell his home, and lives in rented accommodation.
Later, Stott said he was delighted to have been vindicated of any dishonety or impropriety.
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Saturday 26 May 2012
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