Glasgow lawyer who covered up husband’s £24K mortgage scam makes it to Scottish Legal Consumer Complaints register

The Law Society of Scotland continues to allow dishonest lawyers to work, unknown to potential clients. GLASGOW SOLICITOR CATRIONA MACFARLANE, made famous earlier this year for covering up her mortgage broker husband’s theft of £24,000 of funds from clients she also represented, is the subject of this week’s feature on the new Scottish Legal Consumer Complaints website, well worth a read for Scots consumers of legal & financial services – especially in this case, mortgages, house purchases & sales.

Notably, even though Ms McFarlane was found guilty by the Scottish Solicitors Discipline Tribunal, censored, and fined the magnificent sum of £2,500, she is still working as a solicitor – a testament to the ‘ultimate in client protection’ offered by the Law Society of Scotland and hapless Scottish Legal Complaints Commission, ensuring once again that consumers are not safe while lawyers continue to regulate themselves.

Scottish Legal Consumer Complaints - A community based register of those to avoid in the legal profession :

I have previously reported on the Catriona MacFarlane case here : Glasgow lawyer who covered up husband's £24k client theft gets slap on the wrist by Law Society tribunal, continues working & here : Law Society ‘routinely fails to report crime' as Crown Office admits it never received report on Glasgow lawyer theft cover-up investigation

Curiously, the Crown Office refused to prosecute Ms MacFarlane even though the matter was reported to the Lord Advocate herself, as I reported here : Crown Office brought in over mortgage broker’s £24k client theft after Law Society failed to report Glasgow lawyer who 'covered up' for husband

Perhaps Mortgage Fraud, especially when it involves lawyers, is not much of a crime to the Crown Office .. or could it be more to do with the Crown Office being rather reluctant to prosecute lawyers for any offence at all, as I reported here : Justice Secretary 'hush hush' on criminal records of lawyers as Crown Office claims its too costly to keep details on legal profession's crooks

A fine example where the community must step in to protect & ensure all consumers are alerted to the dishonest elements of Scotland’s legal profession. Please visit Scottish Legal Consumer Complaints for more details on elements of Scotland’s legal profession you as consumers & existing or potential clients of solicitors may very well wish to avoid …

Crown Office brought in over mortgage broker’s £24k client theft after Law Society failed to report Glasgow lawyer who 'covered up' for husband

Crown Office received report of Mortgage broker theft. SCOTLAND’s CROWN OFFICE have today received a report of the theft of a client’s £24,000 mortgage deposit by ex-mortgage broker NIGEL MACFARLANE (formerly of mortgage brokers, Ideal Mortgages), details of which were discovered during hearings at the Scottish Solicitors Discipline Tribunal after the Law Society of Scotland investigated complaints against Mr MacFarlane’s wife, solicitor Catriona MacFarlane who had represented the same client and covered up her husband’s theft.

The Crown Office were informed of matters concerning the case, and were drawn to the attention of weekend media coverage in the Sunday Mail newspaper, reporting further on the MacFarlane case and spectacularly breaking the secrecy of the SSDT report which had suspiciously failed to publicly identify Mr Wilson, the client whose funds had been stolen by solicitor Catriona MacFarlane’s husband. The Sunday Mail's report gave the victim a chance to speak publicly about his nightmare at the hands of the MacFarlanes.

Today's report to the Crown Office, which was accompanied by copies of the Scottish Solicitors Discipline Tribunal hearings, stated : “It is in the public interest, and vital for the protection of all consumers that the Crown Office investigate the case for possible prosecution as a deterrent to a further reoccurrence of this incident to consumers, and proceed accordingly.”

You can read my earlier report on the Catriona MacFarlane case, here : Glasgow lawyer who covered up husband's £24k client theft gets slap on the wrist by Law Society tribunal, continues working

Law Society of Scotland failed to report crimes it detected. During my own investigation of the MacFarlane case, it transpired the Law Society of Scotland and the Scottish Solicitors Discipline Tribunal FAILED to inform both Strathclyde Police and the Crown Office that criminal activity had been detected during their investigation of the complaints made against Catriona MacFarlane. You can read my earlier report revealing the failures to inform the authorities, here : Law Society ‘routinely fails to report crime' as Crown Office admits it never received report on Glasgow lawyer theft cover-up investigation

A legal insider today commented that Law Society complaints reports and SSDT findings are routinely screened to prevent identities of clients being made known to the wider public & media, for fear that newspapers would approach those whose complaints had ended up at the Tribunal for possible ‘striking off’ solicitors.

He said : “Its a bit off that in 2010 people cant find out who is making a complaint about a solicitor just because the Law Society and the SSDT don't want journalists knocking on victims doors. People have a right to know which solicitors have done what to clients. I personally do not have a problem with that.”

Solicitors Tribunal revealed solicitor covered up theft but no report was made to Police or the Crown Office. A spokesman for a consumer organisation also commented on the apparent lack of detail in the solicitors tribunal findings, saying : “I feel its about time the Law Society ensured the full details of any criminal activity they come across while conducting an investigation should be handed over to the proper authorities to ensure consumers are fully protected against professionals who the general public are forced to place their trust in to handle their legal & financial affairs.

He continued : "The Law Society frequently inform complainers they cannot investigate criminal allegations but rarely if at all pass on to the Police, the details of those allegations to the proper authorities. Clearly this matter, which amounts to the legal profession turning a blind eye to criminality within its ranks, must be immediately addressed.”

The SSDT could not be contacted for a statement on the actual reasons for their rules of secrecy and the Law Society were today, said to be “angered” & “very concerned” the identity of Catriona MacFarlane’s client had been revealed, which led to the renewed publicity on the case and today’s report to the Crown Office, asking the full weight of the law be applied in this case to protect consumers and act as a deterrent against similar instances.

So, the lesson here is, if you have made a complaint to the Law Society of Scotland, or the Scottish Legal Complaints Commission, or you have a case before the Scottish Solicitors Discipline Tribunal, make sure you contact someone or a journalist like myself who can publish it, because it is very clear the legal profession don't want the public to know what their solicitor has done to other clients. Time to change all that, and ensure the public do get to know who they are trusting as their legal representatives.

MORTGAGE MAN STOLE MY £24K

Lawyer wife covered up scam

By Russell Findlay Sunday Mail 07 Feb 2010

A STUNNED home-buyer's £24,000 deposit was swiped by a mortgage broker whose lawyer wife then covered it up. Jim Wilson gave the money to Nigel MacFarlane, of Ideal Mortgages, but the adviser stole it and spent it. It then took 19 days for Jim's solicitor Catriona MacFarlane, 49 to tell him that the thief was actually her husband. Despite the deception, MacFarlane was not struck off by the Scottish Solicitors' Discipline Tribunal. Instead she was fined £2,500 for professional misconduct.

Jim, from East Kilbride, said : "She had her knuckles rapped. Yet for almost three weeks, she hid the fact her husband had taken our money."

MacFarlane referred to her husband as "the broker” during the property purchase.

The SSDT found that MacFarlane's delay in revealing the truth deprived her client of independent legal advice.They also ruled that MacFarlane, a solicitor for 27 years, had acted "very irresponsibly" and that her actions were "contrary to the standards of conduct expected".

Suspicious Jim found out the truth when he confronted MacFarlane at her then employers, Glasgow firm Hasties. Jim said : "She put her head in her hands and admitted it. I had to take out an emergency loan."

Nigel MacFarlane visited Jim at his home and vowed to repay the cash, which he did.

Glasgow lawyer who covered up husband's £24k client theft gets slap on the wrist by Law Society tribunal, continues working

Law Society of Scotland investigation found McFarlane covered up £24,000 client theft by her own husband. In yet another case which demonstrates the lack of effective regulation of Scotland's legal services market and poor consumer protection, solicitor CATRIONA MACFARLANE, 49, of Hasties Solicitors, Glasgow, has been found guilty by the Scottish Solicitors Discipline Tribunal of professional misconduct but allowed to continue working as a solicitor.

The findings reported by the Scottish Solicitors Discipline Tribunal (SSDT), said that Catriona Macfarlane’s actions had left her client in a vulnerable position and left them exposed to an unacceptable risk after it had been revealed she covered up her own husband's theft of £24,150 from a client who had approached Mrs Macfarlane to act for him in a house purchase deal.

SSDT heard lawyer covered up husband’s massive theft from client after cash was handed over for mortgage. In August 2006, Mr. A approached a mortgage broker, identified as Ideal Mortgages, to arrange a mortgage, giving Mr Nigel Macfarlane £24,150 to be used as a deposit on a property, and approached Catriona Macfarlane of Glasgow Law Firm Messrs Hasties to act for him in the purchase. The client, Mr A, was not aware at this time, that Catriona Macfarlane was married to his mortgage broker, Mr Nigel Macfarlane, nor did Macfarlane disclose this relationship to her client. Problems with the mortgage caused the house purchase to be delayed, which prompted the client to call his solicitor, Mrs Macfarlane, informing her he had handed £24,150 to the mortgage broker, who Mrs Macfarlane had still not disclosed was her husband. The SSDT judgement reported that Mrs Macfarlane's only reply to her client's telephone call was "She said only that she would call him back".

The Tribunal decision further reported : "She (Mrs Macfarlane) called back a short time later. She said that, having spoken to the broker, she was able to confirm that Mr A's money was safe and could be returned to him at any time. By this stage, she was aware that her husband had misappropriated Mr A's money. On 19 February, Mr Macfarlane came to Mr A's house and confessed … that he had spent his money. He promised to 'sort things out'."

“Mr. A and his wife were by this time suspicious. Although Mr. MacFarlane and the Respondent referred to each other respectively as “the broker” and “the solicitor” they shared the same surname. Mr. A and his wife confronted the Respondent on 19 February 2007. She confirmed that she and Mr. Macfarlane were married. She said that she “would sort things out”.

“On 26th February 2007 the Respondent advised Mr. A that she could no longer act for him and that he should seek separate representation. Mr. A was thereafter represented by new Solicitors. The transaction was completed in April 2007. All additional costs including penalty interest due to the sellers of the property were recovered from Nigel Macfarlane. The sums misappropriated by him were repaid in full."

The SSDT’s verdict : availabe for download in pdf, here: Law Society v Catriona Margaret Macfarlane

Solicitor Catriona Macfarlane, of Loganswell, Newton Mearns, Glasgow, and employed by Glasgow Law Firm Messrs Hasties Solicitors of Lynedoch Crescent, Glasgow, who was enrolled as a solicitor on 4 October 1982 was found guilty by the SSDT of Professional Misconduct in respect of her failure to disclose to her client the extent of her knowledge of her husband’s actings and her failure to timeously advise her client to seek separate independent advice and her failure to withdraw from acting for her client, all in breach of the Code of Conduct for Scottish Solicitors 2002.

The Scottish Solicitors Discipline Tribunal issued punishment, censuring Mrs MacFarlane, and issued a fine of £2500 to be forfeit to Her Majesty and Direct in terms of Section 53 (5) of the Solicitors (Scotland) Act 1980.

Further, Mrs Macfarlane was informed that for a period of 3 years, her practising certificate shall be subject to such restriction as will limit her to acting as a qualified assistant to and to being supervised by such employer as may be approved by the Council or the Practising Certificate Committee of the Council of the Law Society of Scotland. Mrs Macfarlane was also found liable in the expenses of the Complainers and of the Tribunal.

A representative of one of Scotland's consumer organisations condemned the decision to allow Mrs Macfarlane to continue as a solicitor, also branding the fine & practising certificate reduction as "weak".

She said : "This case shows us nothing has changed. Weak punishments like this are no deterrent for rogue solicitors who have the ability to rip off their clients without fear of losing their jobs & livelihood. Cases like this show that the Law Society of Scotland and SSDT are not serious about consumer protection from rogue solicitors.”

“How can the public have any confidence in the legal profession if all solicitors get is a slap on the wrist and fine when they are caught in major wrongdoing such as this case where, according to the SSDT findings, the solicitor covered up for her own husband's theft of clients money."

She continued : "I'm sure the public expected a lot more after the LPLA Act (2007) came into force but as we can see, the legal profession are still looking after their own, with the Scottish Legal Complaints Commission making not one bit of difference to the rising levels of fraud against consumers by their legal representatives."

Justice Secretary Kenny MacAskill accused of being a soft touch on poor regulation of crooked lawyers. A member of the public who is experiencing huge problems with the Scottish Legal Complaints Commission and the Law Society of Scotland over his complaint branded the whole system of regulation of lawyers in Scotland as ‘a con against the public, and also condemned the Scottish Government for being soft on crooked lawyers.

He said : “Where is the long arm of the Justice Secretary when all these crooked lawyers are stealing to order from their clients ? I cant get a fair hearing with this useless SLCC or the Law Society, and writing to the Scottish Government has also done no good. Any lawyer who covers up a theft or steals from theri clients should be jailed because if I had done it, I would go to jail. Why the special dispensation for lawyers to steal as they like ?”

Crown Office silent on criminal charges against lawyers. The Crown Office were asked today if Catriona Macfarlane and her husband, Nigel Macfarlane, would face criminal charges for the cover up and theft of their client’s funds, which albeit were repaid, still rank as theft (which in most people’s book is still a criminal offence). So far, no response from the Crown Office, who are well known to have a soft touch against criminals in the legal profession itself, often apparently refusing to prosecute solicitors of even very serious crimes.

You can read an earlier article I wrote on how the Crown Office mishandle prosecutions against solicitors, here : Justice Secretary 'hush hush' on criminal records of lawyers as Crown Office claims its too costly to keep details on legal profession's crooks

A source at the Law Society of Scotland today alleged it had not passed on any details of any criminal activity detected during their investigation to the Crown Office, which is no big surprise, as the Law Society of Scotland usually cover up any details of criminal activity they discover during the course of their 'investigations' into crooked lawyers and I doubt the Scottish Legal Complaints Commission, had they been involved, would have done any different (another non-surprise).

‘Anti-client’ Scottish Legal Complaints Commission would have done no differently, issuing just another slap on the wrist. Trust in the Scottish legal profession will never be established until fully independent regulation (not the half-baked, half-house Scottish Legal Complaints Commission slap handed version) is enacted to protect consumers from thousands of cases of serious fraud, negligence and the poor handling of clients legal affairs which occur each year in Scotland.

Please support the implementation of fully independent regulation for legal services in Scotland.