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Melbourne lawyer sentenced to 6 years for stealing $1.7m from clients
A principal lawyer has copped a substantial prison term after he was caught stealing $1.7 million worth of clients’ cash to fund a lavish lifestyle.
Tony Zhang
John Kotsifas, owner of the Northcote firm J Kotsifas & Associate Lawyers, was last week sentenced by the Supreme Court to six years’ imprisonment after earlier pleading guilty to theft and causing deficiencies in clients’ trust accounts.
According to court documents, the cash was splashed on multimillion-dollar homes in Balwyn, pricey renovations and a golf club membership.
He also used the money to service ballooning credit card debts and out-of-control loan repayments for his luxury Porsche, the court heard.
Mr Kotsifas’ lawyer told the court he’d felt pressured by his wife to provide a luxurious lifestyle beyond his means.
Mr Kotsifas was convicted of 23 charges, including the theft of $267,000 from clients and another $1.49 million he was supposed to have held on trust for them.
Furthermore, helped himself to more than $400,000 he held on trust for one client.
According to the court records, the client identified 27 transactions by him that she hadn’t authorised, including the payment of his golf club green fees and settlement fees for properties she didn’t own.
Court documents reveal he also bought a $1.2 million Balwyn North property with a substantial mortgage and had a second large loan to cover renovations so he could then sell that home to buy a $2.4 million English Tudor-style home in Balwyn.
Mr Kotsifas then spent clients’ money to rent the second Balwyn home during the purchase process.
But he defaulted on the first two mortgages rendering him unable to buy the other property, costing him his $247,000 deposit.
Lawyers Weekly understands he previously faced disciplinary action for manipulating clients’ trust accounts dating as far back as 2006, the court heard, and since his latest offending was discovered and he was declared bankrupt in 2016 his marriage with his second wife had broken down.
Justice John Champion told the court one client was left “on the brink of homelessness” as a result of Mr Kotsifas’ deceit, according to her victim impact statement tendered to the court.
Another told the court her late husband, Mr Kotsifas’ long-term client of 20 years, felt “gutted” by his actions, which he discovered while he was gravely ill and shortly before his death.
“She describes how sometimes you would visit their home with your children and that you invited them to your birthday party,” Justice Champion said.
“Some of your clients regarded you as a friend… these actions result in your conduct being all the more reprehensible.”
In sentencing Mr Kotsifas last week, Justice Champion said he’d not only caused pain and loss to his victims but also brought the legal profession into disrepute.
“Your actions have caused pain and misery to your clients, the people who trusted you. As a result of your offending, your career as a practising lawyer is finished and you are in disgrace,” Justice Champion said.
Mr Kotsifas must serve four years before becoming eligible for parole.
The solicitor in this story, John James Kotsifas of Northcote law firm J Kotsifas & Associates, is in no way professionally related to Melbourne solicitor John Andrew Kotsifas of JK Legal Barristers and Solicitors.
