Lawyer 'told lies about cancer to hide theft' claim

A SOLICITOR accused of funding an extravagant lifestyle by stealing £1.4m from a law firm lied that he and his wife were making trips to New York and London so she could have treatment for a rare form of cancer, a jury heard.

Simon Morgan told his partners Simon Bass and Giles Ward at Milners solicitors in Leeds that his wife Ann Young Morgan had cancer or leukaemia but in fact she had never had any such illness, Martin Bethel QC prosecuting told Leeds Crown Court.

Mr Bass giving evidence yesterday said Morgan had told him and Mr Ward one Monday morning in 2002 that he had a delicate matter he wanted to discuss which he wanted them to be discreet about.

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"He proceeded to tell us that Ann had cancer, that she had had cancer a long time, that she had a rare form of cancer which affected her blood and as a result she needed treatment.

"He explained that was why they often went off on short breaks to get the treatment."

He told the jury the breaks included trips to London and on more than one occasion trips to New York.

On occasions when he heard they were going for a trip he asked Morgan how his wife was.

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"In fairness he never used to say a lot about it," said Mr Bass. "I thought it was a subject he found it difficult to talk about, I'm not so sure now."

He said he understood she was having blood transfusions.

"My mother died of stomach cancer and for a long time before she died she would have blood transfusions so the idea Ann was having such treatment which would give her enhanced chance of life that she could pay for in New York, I thought well fantastic," he said.

Mr Bass said he understood it was being financed from Mrs Morgan's private wealth and at one point that she was taking money from the law firm's office account that she had previously invested in Milners.

He said he never saw the ledgers covering that money "It kind of seems crazy now" but said he trusted what he was told.

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"Partnership is a bit like a marriage and you have to trust your partners."

Morgan, 50 of Main Street, Bilbrough, near York denies six charges of theft between January 2002 and July 2004.

His wife Ann, 55 is not present in court. She has been found to be under disability and unfit to stand trial for psychiatric reasons and the jury has been told they must decide if she did the same acts charged with her husband.

Mr Bethel said it was Ann Morgan who was running the accounts department in her job as office manager, Mr Bass and Mr Ward agreeing she should stay on in that role when they became partners in Milners from November 1, 2001.

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He told the jury Morgan had told them his wife had qualifications as both a solicitor and an accountant when that was not the case.

They were also told she would be taking no salary as she had private means when unknown to them she took regular payments up to 10,000 a month which only ended in April 2004.

Over the same period the two partners were told they would have to take less in drawings from the firm because of financial difficulties, Simon Morgan telling them his wife had pared the firm's expenses "to the bone."

Mr Bethel told the jury when police were involved Simon Morgan asserted he believed his wife had funded their lifestyle from a private income.

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Inquiries revealed she came from a working class family, her father was a tanker driver and two of her sisters worked at Milners at some point as cleaners.

"We submit that he cannot have believed in these circumstances that she had such substantial wealth from a family inheritance."

He suggested Morgan must have known where the money was coming from.

The trial continues.

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