THE HIGH Court has frozen the bank accounts of a Dublin-based solicitor after it was discovered that he had not paid more than €200,000 owed to clients following the sale of their house.
The court also heard that files from solicitor William Davis’s offices have already been seized.
Yesterday Mr Justice Patrick McCarthy, following an application by the Law Society, made an interim order freezing all bank accounts relating to solicitor William Davis, the principal of William J Davis and Co, Solicitors, Herbert Street, Dublin 2.
The court made further orders including that Mr Davis hand over all his records and files to the Law Society, cease practising as a solicitor until further orders and not attend at his practice.
The court heard Mr Davis does not have a solicitor’s practising certificate. Yesterday’s application was made on an ex parte (one side only) basis.
Paul Anthony McDermott, for the Law Society, said it was seeking to have the firm’s bank accounts frozen due to a complaint by two people who Mr Davis acted for over the sale of a house.
Counsel said the Co Meath house was sold for €299,000 in March of this year, and the proceeds were paid over to Mr Davis.
The two, who were not named, received €90,000 from Mr Davis. Despite promises, he failed to pay the rest of the money. The two engaged another solicitor and complained to the Law Society. Counsel said the society engaged an accountant to investigate.
Last week the investigator went to Mr Davis’s offices and made a preliminary report on the issue.
Mr Davis, the court heard, fully co-operated with the accountant.
Counsel said Mr Davis told the investigator he used the money in his client account to pay off another client, whose identity was not revealed in open court. Solicitors are not supposed to transfer money in this way, counsel said.
There was only €767 left in Mr Davis’s client account. Mr Davis claimed to the investigator the deficit in his firm’s client account is an estimated €250,000.
Mr McDermott said an “emanation of the State” had previously raided Mr Davis’s offices and seized files and documents. It is understood the materials relate to the client to whom the missing money was transferred. “The Law Society does not know the full extent of the problem – it has not been able to work out what is going on,” he said.
The society was seeking “general freezing orders” in relation to bank accounts in the solicitor’s name, and the other orders as a matter of urgency. The society informed Mr Davis last week it intended to seek such orders.
Mr Justice McCarthy granted the Law Society the orders it was seeking, and made the matter returnable to later this week.