Login
Solicitor to be removed from roll for dishonestly obtaining large sums of money from clients
A Queensland-based solicitor who dishonestly obtained large sums of money from clients, entered into costs agreement with her own firm so as to invoice herself, and billed clients for work already performed has been struck from the roll in two states.
Digital
The Queensland Civil and Administrative Tribunal (QCAT) heard that solicitor Tracey Anne Smith – who also operated under the name Tracey Anne Brewer – dishonestly obtained large sums of money from clients in her work as executor or power of attorney for financial matters while engaging her own sole practice.
In her role as executor or power of attorney – during which she had entered into a “void and unenforceable costs agreements” with her own firm – Ms Smith authorised the use of trust funds to pay her own invoices. Other charges are related to receiving money into a general account and transferring money out of the trust account.
“The amounts involved were grossly disproportionate to the worth of the work done,” QCAT heard. “A costs assessor engaged by the commissioner said that in one case, the amount charged exceeded a reasonable amount by more than 90 per cent.”
On some occasions, Ms Smith invoiced for work already performed, double-charged her clients or sometimes “overcharged to a much greater degree”. Ms Smith said she accepts that this conduct was dishonest and the money owing to her was untrue.
The commissioner provided the following table to set out the amounts obtained by the respondent over the course of her misconduct. The amounts in brackets referred to the amounts invoiced more than once for the supposed same work.
|
Charge
|
Amount obtained
|
|
1 and 2
|
$64,578.65 – properly incurred costs of $5,656.05 ($27,450 plus GST dishonestly obtained)
|
|
3 and 4
|
$35,378.34 ($13,700 plus GST obtained dishonestly)
|
|
5
|
$19,809
|
|
7
|
$13,191.80
|
|
8
|
$42,286.82 – properly incurred costs of $10,193.55
|
|
9 to 11
|
$33,101.60 ($480 plus GST dishonestly obtained and $3,280 attempted to be obtained dishonestly)
|
Other charges relating to Ms Smith came from this self-referral and the commissioner’s inability to find records of the misconduct. For example, Ms Smith failed to invoice the executor although money was transferred from the account, had transferred money from the trust account without the necessary authority, and had received money into her general account instead of her trust account.
QCAT made an order recommending that Ms Smith be struck from the roll of practitioners in Queensland and in NSW.
