Mayo solicitors fined €50,000 by tribunal for professional misconduct

TWO Co Mayo solicitors have been fined a total of €50,000 after being found guilty of professional misconduct by the Solicitors’ Disciplinary Tribunal for accounting irregularities which were described as “systematic off-the-books trading”.

A hearing before the legal profession’s disciplinary body in Dublin yesterday heard that solicitors Michael McDarby and Seán Acton, with a practice at Glebe Street, Ballinrobe, Co Mayo, had misled the Law Society by trying to cover up “a brilliant scam” with lies.

The three-person tribunal found the two solicitors guilty of professional misconduct on nine separate charges relating to the operation of their accounts and notifying clients of professional fees. The two men had pleaded guilty to six of the charges but had contested the remainder.

The tribunal found Mr McDarby and Mr Acton not guilty on a separate charge of charging clients a fee based on a specified percentage of awards contrary to rules governing the profession, due to lack of evidence.

Legal representatives of the Law Society claimed an examination of 120 files, relating to the period 2002-2004, had shown that clients had been charged a 10% fee in the vast majority of cases.

The tribunal heard Mr McDarby and Mr Acton had devised a sophisticated system of opening special accounts in their clients’ names which remained under their control at the Ulster Bank branch in Ballinrobe.

Under the system, settlements to clients were made in two payments. According to the Law Society, the smaller payment was regularly made to the special accounts in sums equating to or around 10% of the total settlement.

The Law Society claimed these sums, which were ostensibly cash payments to clients, were in fact fees claimed by the solicitors.

Paul Anthony McDermott, counsel for the Law Society, expressed disbelief at the explanation offered by Mr McDarby and Mr Acton that their clients had wanted their settlements to be made in two payments.

“It’s hard to imagine client after client would just happen to want 10% paid out to them separately,” observed Mr McDermott. “It’s quite clear that the 10% payments were the fees being paid to the solicitors.”

He accused Mr McDarby and Mr Acton of attempting to “pull the wool over the eyes of the Law Society” by providing affidavits from three of their clients supporting their claims. Mr McDermott said there were questions over the authenticity of the documents.

The tribunal rejected recommendations by the Law Society that the two solicitors should have been struck off. Instead, they ruled that Mr McDarby and Mr Acton be censured and fined €25,000 each.

They were also ordered to pay the full costs of the hearing.