Solicitor’s accounts frozen after client account deficit discovered

Barry Murphy, who was admitted to the Roll of Solicitors in 2008, traded as Eugene Carey and Company Solicitors, Courthouse Chambers, Mallow.

The Law Society obtained interim orders at the High Court, on consent, freezing Murphy’s accounts after he revealed the client account deficit to two clients and the Law Society earlier when he was unable to provide €319,000 needed by clients to close a sale.

Mr Justice Peter Kelly heard that Mr Murphy was consenting to various interim orders, including freezing his accounts and suspending him from practising.

In an affidavit to the court Niamh O’Connell, investigating accountant with the Law Society, explained that Mr Murphy had admitted to her he had a serious gambling problem. He said he originally used monies from his account to fund his habit.

Ms O’Connell said that the Law Society’s Regulation of Practise Committee formed the opinion that Mr Murphy was guilty of dishonesty in his practise in allowing a minimum deficit of €349,437 to arise on the client account as of June 28.

Mr Murphy stated he had only €100,000 left in his client account and admitted to having considerable debts.

Ms O’Connell attended his office to inspect his accounts and had prepared an interim investigation report. But she added that none of the books were up to date and not all the bank statements were present, so it was difficult to quantify the deficit at the time.

The book of account were in arrears and had been last posted for July 2015, when the solicitor’s bookkeeper left.