JOHOR BAHRU – What was supposed to be a smooth property transaction turned into a financial nightmare for a family based in Subang Jaya as the law firm handling the sale allegedly misused the entire sale proceeds, amounting to over RM500,000.
The nephew of the woman who sold the property took to Facebook to share the ordeal, revealing that the law firm involved confessed to diverting the funds intended for the family.
Timothy Prakash said the property had been successfully transferred to the buyer in August last year, but the family did not receive the expected proceeds from the sale.
On Facebook, Prakash said a staff member at the law firm had remained uncooperative and ignored repeated attempts to contact him.
He said upon visiting the law firm’s office in Kuala Lumpur, the family was shocked to learn that all their funds had been used.
“This money was supposed to be used by us to purchase our new property, and we have already signed a sales and purchase agreement,” Prakash lamented in his viral social media post.
While the law firm agreed to pay a portion of the owed amount immediately, the remaining RM300,000 is promised to be settled later.
Unsatisfied with this arrangement, Prakash’s family sent a letter of demand to the law firm and filed a complaint with the Advocate & Solicitor’s Disciplinary Board.
The law firm also promised the family to settle the full amount by January 20, subject to the withdrawal of their complaint to the Disciplinary Board.
Speaking with Scoop, Prakash explained that his family made a report at a police station in Senawang and filed another official report at Bukit Aman to highlight the alleged criminal breach of trust (CBT) by the law firm.
The virality of the Facebook post by Prakash led to other clients of the law firm reaching out to him with similar allegations.
“We want to file the report to help with our situation. So far, we have made a report stating the law firm has used our money, and now we will mention CBT in our next report,” Prakash said when contacted.
“The Disciplinary Board has also received our report, and it will take some time for them to resolve the matter. In the meantime, we just want to get our story out there.”
Meanwhile, Scoop also contacted an individual named Yusyairi, the law firm’s staff member whom Prakash implicated.
Asked to comment on the allegations, Yusyairi briefly mentioned that he has to consult with his superiors, as the law firm does not want to complicate the matter further.
Yusyairi confirmed that Prakash and his family had contacted the firm, which was keen to resolve the matter.
However, upon pointing out that lawyers are not allowed to use clients’ funds outside their intended purpose, Yusyairi ended the conversation.
“Later, if there is anything else, I will call you back,” Yusyairi told Scoop.
Rule 7 of the Solicitor’s Accounts Rules 1978 stipulates that only a lawyer is permitted to withdraw funds from their client’s account for payment on their client’s behalf or to their client.
Further, misuse of funds in their client’s account may result in a lawyer losing their practising license under Section 94(3)(c) of the Legal Profession Act 1976 for dishonest conduct.
According to Prakash, Yusrairi is not a lawyer in the law firm and is employed as a clerk. – January 8, 2024