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NEWS - July 2007

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Refco lawsuit
Thomas Lee sues law firm over Refco role
Buyout firm Thomas H. Lee Partners has sued law firm Mayer, Brown, Rowe &
Maw over the firm's alleged role in a cover-up at commodities firm Refco. In
2004, Lee acquired a controlling stake in Refco, once one of the world's
dominant commodities and derivatives-trading firms. Yet in 2005, Refco said
an internal review had uncovered an improper loan scheme, a finding that led
to the discovery of multiple sham loan transactions to hide customer losses.
The disclosure led to Refco's seeking bankruptcy protection. Lee's lawsuits
and a bankruptcy examiner’s report published this month allege that Mayer
Brown handled 17 loan transactions that helped Refco shift bad loans off its
books. Lee claims that the law firm knew about the bogus transactions and
did not inform Lee when the buyout firm was conducting due diligence before
its 2004 purchase. |
Financial News U.S. |
30 Jul |
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New Law Soc head promises
support in time of change
FIONA Woolf last week (19 July) stepped down as the president of the Law
Society to make way for immigration lawyer Andrew Holroyd. Holroyd, a
partner at Liverpool-based Jackson & Canter, took over the reins of the
solicitors’ representative body at the AGM. Holroyd vowed to lead the entire
profession through “what is bound to be a period of immense change and
challenge”, with legal aid and the Clementi reforms very much in flux. The
new president said the society’s main role is to support solicitors and he
will endeavour to do this by travelling the country to find out the
profession’s issues first-hand. |
The Lawyer |
27 Jul |
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Tadley solicitor handed
six-month jail term for scamming banks and building societies
A TADLEY solicitor has been jailed for his part in a mortgage scam. Robert
Stober, aged 68, of Silchester Road, Tadley, was handed a six-month jail
term at Winchester Crown Court last Thursday, July 19. Also in the dock was
businessman Douglas Caffell, aged 42, of Long Lane, Shaw, who received a
suspended sentence. In February this year, ringleader Phillip Carter, aged
41, of The Green, Silchester, admitted four counts of false accounting, five
counts of conspiracy to defraud and three counts of obtaining money transfer
by deception. The court heard Carter had tried to re-mortgage property
without declaring his exisiting mortgages and loans. Several banks and
building societies fell foul of his scam. |
Newbury Today |
27 Jul |
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Judge criticises Court of
Appeal on mediation A senior
High Court judge has criticised the Court of Appeal’s thinking on mediation
in the key decision of Halsey v Milton Keynes NHS Trust, which he said was
‘clearly wrong and unreasonable’.
Mr Justice Lightman claimed the 2004 ruling has created a barrier to
mediation that should be removed. Giving a lecture at City firm SJ Berwin,
the judge said the ‘disadvantaged citizen’ is ‘all too often without legal
redress or protection’, and that mediation pre-trial was one of the only
methods of providing affordable access to justice, even if it is only an
‘approximation’ of justice. But, he said, the use of mediation is being
stifled by the Court of Appeal’s decision in Halsey, in which it laid out
that parties could not be forced into mediation and that the burden for
‘proving reasonableness’ over refusing to mediate is not on the party that
refused. Mr Justice Lightman said these two propositions were ‘unfortunate,
and clearly wrong and unreasonable’. |
Law Society Gazette |
20 Jul |
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Law Society names new
president
Fiona Woolf today (19 July)
stepped down as the president of the Law Society to make way for immigration
lawyer Andrew Holroyd. Holroyd, a partner at Liverpool-based Jackson &
Canter, took over the reins of the solicitors' representative body at the
AGM. Holroyd vowed to lead the entire profession through "what is bound to
be a period of immense change and challenge", with legal aid and the
Clementi reforms very much in flux. |
The Lawyer |
19 Jul |
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Correction
"Some of our more eagle-eyed readers might have spotted a mistake in the
July issue of Legal & Medical..The article on page 17, entitled The Money
Pit, ended rather abruptly. We apologise for this – please find the whole
article reprinted in full." The
money pit
Matt Stanley picks through the issues exposed by Lord Lofthouse’s report on
the coal health compensation scheme..“I am of the firm opinion that the
British Coal litigation evidences regulatory ineptitude on a scale the like
of which has never been seen before in this country.” So states Lord
Lofthouse’s April 2007 report to the Lords, which is also frank in its
naming of “double-charging” solicitors and blistering in its accusation that
nothing has been done to review the Law Society’s handling of the original
cases. |
Legal & Medical |
19 Jul |
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The High Court judge who may
be in for much more than a severe wigging
Mr Justice Peter Smith, best known for the code in his Da Vinci Code
judgment, is in hot water with the Lord Chief Justice. But could he have had
more of a helping hand from the Establishment?
It looked as if things could not get worse for Mr Justice Peter Smith, the
judge who may go down in history as the "judge who lacked judgment". He had
been castigated recently by the Court of Appeal for failing to stand down in
a case involving trustees where he had shown "undoubted animosity" towards
one of the parties, and issued a defiant statement, digging in his heels,
which at the very least made him look foolish. |
Times Online |
19 Jul |
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Solicitor, fined £8,000, vows
to continue A well-known
Bletchley solicitor fined £8,000 by the Law Society for "unbefitting"
conduct has vowed to carry on practicing. Richard Nixon appeared before the
Solicitors' Disciplinary Tribunal earlier this year after a scrutiny into
his company's handling of four property transactions, including one house
which formed part of a will. The tribunal heard the firm acted for both
buyer and seller in two of the cases – and both houses were bought by Mr
Nixon's own wife to renovate and sell again. |
Milton Keynes Today |
19 Jul |
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SOLICITOR IS JAILED FOR CHEQUE
FRAUD A Plymouth-based
solicitor has been jailed for two years for fiddling cheques and expenses
totalling £19,000. Priya Prashar, aged 29, of Trobridges, doctored cheques
to make them payable to her own bank account while working for another firm
in London. She denied the charges but was found guilty after a trial of
false accounting, theft and perverting the course of justice. Prashar, who
gave her address as Harrow in West London, moved to the Mutley-based firm
two years ago after the offences were committed in 2003 and 2004. But
Trobridges partner Tim Waine said that the firm only became aware of the
allegations about nine months ago. |
The Herald Plymouth |
18 Jul |
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Red tape cost more than sick
miners got in compensation
Almost 300,000 miners with a disabling chest disease have received less
money in compensation than it cost the Government to administer their claim,
a report discloses today. “Significant weaknesses” in the Department of
Trade and Industry’s handling of the world’s largest personal injury scheme
are identified in the report, published by the National Audit Office (NAO).
They led to long delays before many elderly and infirm miners received any
money, but proved to be lucrative for solicitors’ firms, which grew rich by
bulk-processing tens of thousands of claims. |
Times Online |
18 Jul |
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Law Society to pay £100,000 to
miners The Law Society will
pay out up to £100,000 to sick miners after their law firms provided
inadequate professional services in relation to the British Coal
compensation scheme. The society has taken the extraordinary step after one
or two solicitors firms deferred paying the miners until after their
hearings before the Solicitors' Disciplinary Tribunal (SDT). Under the
present rules awards only become enforceable after the matter has been
referred to the SDT and the tribunal has ordered the solicitors to pay. |
The Lawyer |
12 Jul |
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Wigs and gowns to go in
judicial dress reforms Judges
are to end centuries of tradition and abolish wigs and gowns for civil and
family cases, the Lord Chief Justice announced this morning. The 300-year
old horsehair headgear is to go in large numbers of trials from next year,
along with wing collars and bands, Lord Phillips of Worth Matravers said.
But in a compromise that ends one of the most hotly-disputed and lengthy
debates in legal circles, judges sitting in criminal courts will keep their
wigs on. And solicitor-advocates, who have long fought for parity with
barristers, will be allowed to don the same traditional costume that is the
hallmark of the Bar. |
Times Online |
12 Jul |
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Lawyer for defence in the
wrong, says judge A solicitor
who represented three of the July 21 defendants has been criticised by the
judge for her conduct during the trial. Mudassar Arani tried to cover up
lengthy delays in providing statements from her clients by seeking to blame
prison staff, Mr Justice Fulford said. He described her complaints about
Belmarsh jail, southeast London, as a smokescreen and said they were written
in “extremely intemperate language”. |
Times Online |
12 Jul |
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United States: Supreme Court
Clarifies Securities Fraud Standards
In a new 8-1 decision favorable
(sic) to issuers, the U.S. Supreme Court has interpreted the pleading
requirements for securities fraud claims under section 10(b) of the
Securities Exchange Act as imposing a heightened burden on allegations
concerning a defendant’s state of mind. (A riveting read, this one. UJ) |
Mondaq |
11 Jul |
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Lawyer for defence in the
wrong, says judge
A solicitor who represented three
of the July 21 defendants has been criticised by the judge for her conduct
during the trial. Mudassar Arani tried to cover up lengthy delays in
providing statements from her clients by seeking to blame prison staff, Mr
Justice Fulford said. He described her complaints about Belmarsh jail,
southeast London, as a smokescreen and said they were written in “extremely
intemperate language”. After sentencing, the judge said: “These complaints,
in my view, were designed to justify the late service of the defence
statements . . . or some of them. I consider these complaints to be wholly
unjustified.” |
Times Online |
11 Jul |
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Freshfields to face M&S
disciplinary hearing next month
Freshfields Bruckhaus Deringer
will go before the Solicitors’ Disciplinary Tribunal (SDT) at the beginning
of August for its role in the Marks & Spencer (M&S) takeover bid three years
ago. Corporate chief Tim Jones and former corporate head Barry O'Brien will
go before the SDT on 2 August the Solicitors’ Regulation Authority confirmed
today (11 July). In 2004 the magic circle firm advised business tycoon
Philip Green on his £9bn bid for M&S, despite having previously acted for
the retail chain. The then regulatory arm of the Law Society began an
investigation into the conflict of interest, resulting in Jones and O'Brien
being referred to the SDT last October. |
The Lawyer |
11 Jul |
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Law Soc warned about
complaints conduct The Legal
Services Complaints Commissioner Zahida Manzoor today (10 July) raised
concerns that the Law Society was not handling complaints in line with its
own policies. The warning comes as Manzoor published her third Annual
Report, which showed that the Legal Complaints Service (LCS) and the
Solicitors Regulation Authority (SRA) had closed more than 20,000 complaints
in the last financial year within a budget of £36m. The Commissioner said
that the performance of the LCS and SRA had been mixed. |
The Lawyer |
10 Jul |
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Solicitors 'discriminated
against' Nearly a quarter of
solicitors claim to have been discriminated against at some point in their
careers, a survey said. The findings came in a Law Society of Scotland
survey which is said to provide the most in-depth study of the profession to
date. More than 3,000 solicitors, almost a third of the profession, replied
to the survey. And 22% said they had been discriminated against, on grounds
of either age, sex, disability, ethnic origin or sexual orientation, marital
status, or because they worked part-time. Forms of discrimination included
bullying, harassment, being left out of communication, and allocation of
work. But only 9% of those suffering discrimination reported it. |
Midlothian Today |
09 Jul |
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Why are lawyers miserable:
want a list? The juxtaposition
of two stories in The Times last week – one reporting that top-flight City
lawyers were charging as much as £1,000 an hour for their expertise, another
that a quarter of lawyers wanted to leave their profession – raised a
pertinent question: just why are those in the legal business so miserable?
The Law Society has recently been trying to provide an answer, but its
“quality of life” review, taking the form of workshops, debates and online
surveys, has been dragging on inconclusively like a complex fraud case and
also seems to have missed some vital evidence from across the pond. |
Times Online |
09 Jul |
|
NHS pays out £592m a year for
blunders - and a third goes to lawyers
More than half a billion pounds of Health Service cash has been paid out
over blunders as the compensation culture booms. Of the £592million spent on
negligence claims last year, almost a third went directly into the pockets
of lawyers. Experts say increasing numbers of cases are being taken to court
by "no win no fee" solicitors, who tout for business even in A&E waiting
rooms. If they win, these lawyers ask the court for more in costs than legal
aid would, to cover their risk. |
Daily Mail |
09 Jul |
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Kennedy caught smoking on
train Charles Kennedy has been
'spoken to' by police after being caught smoking on a train. The former
Liberal Democrat leader, who quit from the top job after admitting an
alcohol problem, received the reprimand from British transport police
following his behaviour on a Great Western train. Mr Kennedy was said to
have been on the 11.05am from Paddington to Plymouth this morning. According
to the BBC, Mr Kennedy was caught smoking by train staff, who informed the
police, but he was not arrested. (Poor old Charles - no booze, no fags -
what pleasures are left? UJ) |
Guardian |
06 Jul |
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TV 'sting' solicitor struck
off A solicitor filmed in a TV
"sting" giving advice to an undercover journalist on how to stop witnesses
testifying has been struck off. David Lancaster, 57, from Havant, Hampshire,
was taken off the solicitors' roll at a Solicitors' Disciplinary Tribunal on
Thursday. Lancaster was jailed for three years in October for inciting the
reporter to pervert the course of justice. |
BBC |
06 Jul |
|
Client hospitality comes under
the spotlight in Bar standards review
Bar Standards Board unveils ‘blush test’ as key plank of new guidance on
chambers hospitality as senior Bar figures say the regulator has managed a
deft balancing act. Claire Ruckin reports on the latest developments at the
Bar. The Bar Standards Board (BSB) was surely taking a risk when it based
its eagerly-awaited ruling on chambers hospitality on something as
intangible as a blush. But if the reaction of the legal profession is
anything to go by, the BSB has been spared any blushes of its own following
its unveiling of a new ‘blush test’ against which to measure whether
chambers hospitality is over the top or not. The test forms the central
plank of a new set of guidelines on the offering of hospitality and gifts to
solicitors that will be issued shortly to all sets of chambers by the BSB.
While barristers will be allowed to continue entertaining their clients,
they will be warned that ‘lavish’ entertainment risks bringing the
profession into disrepute. |
Legal Week |
05 Jul |
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SRA unveils revamped
solicitors’ rulebook The
new-look Solicitors’ Code of Conduct was finally unveiled this week, five
years after the Law Society first announced it was to review the system. The
25 new mandatory guidelines, which came into force on 1 July with immediate
effect, were drawn up by the professional ethics division of the Solicitors
Regulation Authority (SRA). They replace the 47-year old Guide to the
Professional Conduct of Solicitors. The publication of the new rulebook,
which is intended for solicitors and law firm managers across England and
Wales, follows a Law Society review of the rules that began in 2002.
Download the full Code of Conduct as a pdf file from the
Solicitors Regulation Authority. |
Legal Week |
05 Jul |
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Town fraudster jailed after
£145,000 scam A FRAUDSTER from
Burnham who stole over 145,000 from a law firm in a "highly devious" scam
has been jailed for 28 months. Poplar Road man Allan Geoffrey Thompson, 54,
pleaded guilty to ten theft offences, two of falsifying documents and asked
for a further 25 thefts and 11 false accounting crimes to be taken into
consideration. Bristol Crown Court heard prosecutor Paul Cook explain how
Thompson took money from estates accounts he had access to between 1998 and
2006 when he worked at Veale Wasbrough...When Veale Wasbrough discovered
what had happened the firm reimbursed clients accounts in full, before
notifying police. |
Burnham & Highbridge Weekly News |
04 Jul |
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Solicitor cleared of
perverting course of justice A
solicitor spoke of his relief after a jury cleared him of being part of a
bribery deal to get a criminal case dropped. Mark Rogers, 39, a well-known
defence lawyer in Sussex, was found not guilty at Lewes Crown Court of
perverting the course of justice. Friends, family and colleagues crowded
into the public gallery reacted with tears and cries of delight as the jury
returned its verdict after a ten-day trial. After he left the court Mr
Rogers, who closed his own business following his arrest on the allegations
last year, struggled to maintain his composure as he said: "I am relieved it
is all over. |
The Argus |
03 Jul |
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FSA warns of criminal gangs
cashing in on insider dealing
Gangs of organised criminals may be infiltrating the mergers and
acquisitions departments of British investment banks to garner inside
information on takeover bids, the City watchdog suggested yesterday. The
Financial Services Authority accused banks of being “complacent” about the
risks that their own staff might be guilty of illegally exploiting secret
bid information. Banks and other advisers needed to do more to investigate
the source of leaks and should do more to reduce the huge numbers of people
with access to price-sensitive information, the FSA said. It criticised
banks and other advisers for failing to monitor and control personal
dealings in shares and derivatives by their staff. Weaknesses in controls on
information technology and lack of staff training were also raised as
problem areas. |
Times Online |
03 Jul |
|
Internet landbanking scam exposed
Three companies involved in selling plots of agricultural land to the public
have been wound up in the High Court, following an investigation by the
Companies Investigation Branch (CIB) of the Insolvency Service. Townfield
Land Investments Limited acquired agricultural land near Southwold in
Suffolk under an option agreement with a local farmer. It was then marketed
to the public by Libertas Land Limited, by sub-dividing the land into plots
of 2,000 square feet at a price of around £9,000 per plot. CIB's
investigation revealed that the plots had been sold using the internet to at
least 250 members of the public across the UK at some 50 times their
agricultural value and furthermore, the site was inherently unsuitable for
residential development. In particular, the site was within an area of
outstanding natural beauty and a part of the Heritage Coast, where planning
authority policy is not to permit development. See also:
Alerts section |
Money Extra |
03 Jul |
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One in four lawyers wants to
change jobs Almost a quarter
of lawyers want to leave the profession because of stress and long hours,
according to a survey published this week. The poll of 2,500 lawyers also
indicates that assistant solicitors — those who are not partners — are even
more unhappy, with more than a third wanting to give up their jobs. The
YouGov survey for The Lawyer magazine confirms that there is widespread
dissatisfaction with the work-life balance in law, despite record levels of
pay. It coincides with an inquiry by the Law Society of England and Wales
into the long hours and lack of career prospects for lawyers with families. |
Times Online |
02 Jul |
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SRA “Wake up” warning to
solicitors The Solicitors
Regulation Authority (SRA) has warned that rule breaking will not be
tolerated after a Law Society council member was fined at the Solicitors
Disciplinary Tribunal (SDT). Glyn Maddocks, council member for the West
Country and Gwent and a partner at Gabb and Co admitted to five breaches of
professional rules in relation to his dealing with the coalminers’
compensation scheme. He was reprimanded for failing to recognise a conflict
of interests between the firm and it’s clients as a result of his
relationship with the claim farmers IDC, with other breaches including the
paying of unlawful referral fees by his firm. The SRA, who brought the case,
believes the outcome shows the authority’s determination to fight for the
interests of sick miners. |
Legal & Medical |
02 Jul |
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