Solicitor struck off for abuse of client funds

The High Court has struck off a Cork-based solicitor found by the Law Society’s disciplinary tribunal to have improperly used client monies to fund her property portfolio.

The order was made against Deirdre Foley, who had formerly practised as principal of the firm Foley, McNally, and Goldberg, of Pope’s Quay, Cork.

In an affidavit, Ms Foley said she was suspended from practising in Nov 2009 after her former partners obtained an order restraining her from engaging in transactions in the name of the partnership. She has not worked since then.

There was never any intention on her part to conceal any information, mislead, or defraud anyone, she said. All the issues complained of arose at a time when the banks were issuing loans “like hot cakes” and not enough attention was paid in relation to the securities, she added. Ms Foley did not profit from the transactions and was left with a bundle of “particularly invaluable” assets with substantial liabilities, she said. None of the monies borrowed was for lifestyle purposes and she had not lived “the high life”.

The President of the High Court, Mr Justice Nicholas Kearns, made the striking off order yesterday following a recommendation by the Law Society of Ireland’s Solicitors’ Disciplinary Tribunal that Ms Foley is not a fit person to be a member of the solicitors’ profession.

Following an investigation and hearing into allegations against the solicitor, the tribunal found that Ms Foley, a mother-of-three from Maryborough Avenue, Douglas, had engaged in professional misconduct.

This included improperly utilising monies for paying outstanding stamp duty on unrelated properties and for making payments to Revenue in relation to stamp duty.

The tribunal found she had improperly used funds to make a payment to a bank on behalf of another client of the practice.

She also permitted a solicitor’s undertaking to be given to Permanent TSB in respect of a €2.8m loan given to her and her husband for which nine properties were provided as security. This was done despite the fact one of the properties was already mortgaged to ICS Building Society, two others were subject of prior undertakings to other banks, and another had been sold and was not available as security.

Ms Foley had improperly used almost €100,000 to pay stamp duty and interest on six properties owned by herself and her husband, the tribunal found.

The Law Society said the appropriate penalty was that Ms Foley should be struck off.