TWO apparently loyal and trustworthy women cashiers with a law firm
swindled more than #750,000 of clients' money, it was alleged yesterday,
as the solicitor in charge of the cash room was fined #5000 for
professional misconduct.
The firm, Storie, Cruden, and Simpson, of Bon Accord Crescent,
Aberdeen, is now suing the women, and the Crown Office confirmed that a
criminal investigation into the affair is being carried out.
Mr Mario Vicca, 55, was the partner responsible for supervising the
cash room when, in March 1991, accountants acting for the Law Society of
Scotland discovered a shortage of #758,528 in the firm's client account.
The Law Society took Mr Vicca before the Scottish Solicitors
Discipline Tribunal, where he admitted three breaches of the solicitors'
accounts rules.
In its written judgment the tribunal said the work in the firm's cash
room had been carried out by two women cashiers, one of whom had been
with the company for 35 years, the other for 16.
When the money was found to be missing, the firm's accountants,
Williamson and Dunn of Aberdeen, admitted that one of its audit clerks
had failed to carry out his duties properly.
However, the tribunal also found that Mr Vicca's level of supervision
had been inadequate and contributed in a significant way to a fraud on
the firm.
In its complaint to the tribunal the law society said it believed the
missing money in the client account was the result of a fraud by one or
both cashiers.
Mr Andrew Hardie, QC, who presented a plea in mitigation on behalf of
Mr Vicca at the tribunal hearing, explained that the embezzlement had
continued for a number of years and arose from misplaced trust of the
two long-standing employees.
The accountants, Williamson and Dunn, had assured Storie, Cruden, and
Simpson that all was well and everything in the firm's books appeared to
be in order. However, the firm was the victim of a clever fraud by the
cashiers.
Mr Hardie emphasised there had been no loss to the public and no
claims on the law society's guarantee fund because, as soon as matters
came to light, all the partners offered to put up their homes as
security. In the end, the whole deficit had been covered.
He informed the tribunal that the law firm was pursuing a court action
against the accountants, with reasonable prospects of a settlement for a
substantial amount. A decree could also be obtained against the cashiers
but it was doubtful whether any money could be recovered.
The tribunal acknowledged that it was reasonable for Mr Vicca and his
partners to place a considerable degree of trust in long-standing and
apparently experienced members of staff.
The tribunal added: ''It is accepted that the shortfall was not
directly attributable to the action of any of the partners.
Nevertheless, this tribunal has a responsibility to ensure that the
appropriate penalty is imposed in any case of professional misconduct.
''In this case, Mr Vicca's neglect exposed himself and his partners to
a situation where clients' funds were put seriously at risk. It is a
matter of good fortune in this case that, so far as the clients are
concerned, the partners had the resources to cover the shortfall.
''Otherwise, having regard to the amount involved, the loss could have
been catastrophic, causing much distress to clients and grievous damage
to the reputation of the profession in Scotland.''
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