A solicitor who was hoodwinked by an accused fraud
A solicitor who was hoodwinked by an accused fraudster into taking part in a pnds stlg 16,000 mortgage con was struck off today.
(Thurs)
Telford lawyer William Ranson, 60, claimed his client, a classic car dealer, had ‘pulled the wool over his eyes.
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And Ranson lost a massive pnds stlg 143,395 from his client account after allowing the accused fraudster and bankrupt to run the car business through his books.
Today (Thurs) the Solicitors’ Disciplinary Tribunal in London ruled Ranson was unfit to carry on practicing as a solicitor.
Margaret Bromley, for the Office for the Supervision of Solicitors, said Ranson ran his own firm, Ranson’s from premises in Church Street, Wellington, Telford.
In April 1990 Ranson was asked by the client, referred to as Mr E, to help with the purchase of a pnds stlg 117,500 cottage in Powys, Wales.
But Mr E told the Britannia Building Society that the purchase price was pnds stlg 160,000.
As a result the mortgage lender gave Mr E an advance of pnds stlg 136,000.
Mr E then told Ranson he paid a cash deposit of pnds stlg 42,500 to the property vendor.
The allegedly dishonest transaction left Mr E with a tidy profit of more than pnds stlg 16,000 after paying out pnds stlg 117,500 to the sellers.
Ms Bromley said: ‘That was a complete fiction.
There was never any intention for pnds stlg 160,000 to change hands.
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The tribunal heard that Ranson had allowed his firm to act in the scam.
‘There was a balance on the respondents bank account of pnds stlg 16,011.
95 and that money was paid out to the borrower Mr E, and that was confirmed in the ledger,’ Miss Bromley went on.
‘There are significant features to the transaction which should have been notified to the building society.
‘Had they known the true situation they would not have lent pnds stlg 136,000.
It is very likely they would not have lent anything,’ said Ms Bromley.
Ranson later told lawyers for the building society he thought the sale price was the lower figure.
But he did not give an explanation as to why he acted in the way he did.
‘It is clear this transaction had a number of features of a substantial fraud and the respondent wholly lost sight of the fact he was acting for building society as well as Mr E,’ said Miss Bromley.
‘He wholly failed in his duty because his conduct effectively assisted fraud on the building society.
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The tribunal heard how Law Society accountants probed Ranson’s client account in December 1999 and unearthed a client account shortfall totalling pnds stlg 143,395.
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And it was revealed Mr E was ‘effectively running his business through Mr Ranson’s client account’ even though the shady client had been made bankrupt in June 1995.
‘After the date of Mr E’s bankruptcy there was some 420 transactions recorded on the client ledger,’ Miss Bromley said.
The tribunal also heard how more than one million pounds went through the books in a three year period – significant sums of which went to Mr E or his girlfriend.
The shortfall was eventually repaid after eight months and no clients suffered any loss.
But Miss Bromley added: ‘Mr Ranson wholly lost his independence and almost his ability to use independent judgement.
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Ranson, a solicitor for 24 years, denied dishonesty but admitted he had been ‘reckless.
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Nichola Hatcher, for Ranson, said he had the ‘wool pulled over his eyes’ by Mr E.
‘He fell under the influence of another person, Mr E.
He acted in a way he should not have done.
It was reckless.
‘Mr E was someone in his mid 20s.
He was a legitimate businessman.
Mr Ranson had no reason to doubt him.
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Miss Hatcher said the pair then developed a friendship outside the business that may have caused Mr Ranson to ‘lose sight of his professional responsibilities.
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She added that Ranson should have been alerted to potential problems when Mr E was involved in criminal proceedings in Huddersfield on charges that were later dropped.
The panel heard Ranson allowed his bankrupt pal to use the firm’s accounts to give him some ‘breathing space.
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Miss Hatcher went on: ‘You don’t just turn your back on someone when they are down.
‘There was no reason to believe this was some nefarious act.
‘He has allowed himself to be conned and to lose his professional judgement as a result of that.
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Ms Hatcher revealed that Mr E is currently ‘residing in Wandsworth prison in relation to fraud matters but not in relation to things today.
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Ranson , of Dairy Farmhouse, Horton, Telford, admitted breach of duty in failing to disclose information, acting in a conflict of interest, made misleading representations to other solicitors, mislead third parties, failed to obtain written instructions, allowing bankrupt client to make and receive payments without notifying trustees; allowing cash shortfall on clients accounts, that he compromised the independence and integrity of his profession.
Tribunal Chairman Richard Bamford told Ranson: ‘In view of the seriousness of the offence we are going to take the view of striking off and we will leave it to the Law Society whether you will be permitted to work in a solicitors office.
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Ranson will also pay costs, to be assessed at a later date.
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