A yacht-loving Dorset solicitor who used clients’
A yacht-loving Dorset solicitor who used clients’ cash to keep his law firm afloat was struck off for dishonesty today.
(Thurs)
William Caselton, 62, admitted transferring pnds stlg 40,000 worth of customer funds into his office accounts.
Investigating accountants, who examined his Poole firm, found a string of irregular transactions during an inspection of the ledgers in February last year.
Today (Thurs) Caselton admitted dishonesty and misappropriating clients funds at the Solicitors’ Disciplinary Tribunal in central London.
The lawyer, who has repaid the cash, claimed he did not intend to permanently deprive customers of any money.
But the Tribunal imposed the ultimate sanction by expelling Caselton from the profession.
It emerged Caselton had appeared before the Tribunal twice before.
In 1989 he had been suspended for three years for misconduct, although there was no allegation of dishonesty on that occasion.
Jon Goodwin, for the Office for the Supervision of Solicitors (OSS), said the cash scandal occurred at his firm, Caselton Solicitors, of High St, Poole.
Investigators uncovered a cash shortage of pnds stlg 47,587.
62 in the client account, said Mr Goodwin.
Caselton repaid pnds stlg 7,000 of the money immediately, the tribunal heard.
But over an eight month period between June 1999 and January 2000 sums ranging between pnds stlg 40 and pnds stlg 2,150 were siphoned from client to office account.
The vast majority of the cash related to money meant for stamp duty and land registry fees for property deals, said Mr Goodwin.
‘Initially what Mr Caselton was doing was utilising clients funds as if it was his office account.
‘It was working capital that effectively kept the practice going.
‘Had he not transferred those disbursements he could not have run his practice unless he borrowed from elsewhere.
‘
Caselton would have faced being in the red if he had not replenished the office account with client cash.
And when investigators probed his coffers they found the office account was in credit by pnds stlg 7,000.
In one case Caselton acted for Mr and Mrs W in a house deal and they paid him pnds stlg 3,224 in costs in June 1999.
But eight months later the investigator found that most of the cash, for land registry and stamp duty, had not been paid out.
Accountants also noted that some pnds stlg 1,760 had been taken from the client account for bills that were never sent to customers.
In one case Caselton created a false bill to justify keeping pnds stlg 270 of client cash.
‘In acting the way he did that was quite clearly not the actions of an honest solicitor,’ said Mr Goodwin.
On another occasion Caselton kept pnd stlg 50 of a client’s money after a Land Registry document was cancelled.
‘An honest solicitor would have immediately refunded that money to the client.
‘Suffice it to say it is my submission that the behaviour of Mr Caselton is appalling.
‘It creates the wrong impression and they are not the actions of a trustworthy solicitor,’ said Mr Goodwin.
Caselton’s firm was subject to intervention on the grounds of suspected dishonesty after the investigation.
Caselton, of Fullwood Avenue, Bearwood, Bournemouth admitted dishonesty, misappropriating clients funds, failing to keep properly written up books of account, drawing money out of client accounts other than permitted, and utilising clients funds for his own benefit.
His counsel, Graham Campbell, told the hearing all the cash has been repaid.
‘He had no intention at any stage that any of his clients should suffer any loss and there was no intention that he should be able to keep money to which he was not entitled,’ said Mr Campbell.
‘This is a case of a man who had no such intention and who prided himself on the care he gave his clients and the services he gave them.
‘He is very sorry and regretful at what he has done.
‘
He explained that Caselton was suspended in 1989 for three years after a bounced cheque from a property developer client left his firm in financial difficulties.
After setting up his own firm, Caselton started suffering from ‘burn-out and depression’ and was forced to seek medical help, added Mr Campbell.
He said that Caselton planned to retire from law and to open a business involving his passion for yachting.
Mr Campbell appealed to the Tribunal to allow Caselton to retire from practice ‘without the stigma of being struck off.
‘
But chairman Alan Ground ordered Caselton’s expulsion from the profession and said: ‘We have got before us serious allegations which are admitted, and dishonesty which is admitted in relation to them, albeit qualified.
‘However we have no doubt the the correct order to make is a striking off order in view of the admitted conduct.
‘
Caselton was also ordered to pay costs, to be assessed later.
ends
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