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Lawyer found guilty of misconduct after borrowing hundreds of thousands from client

SINGAPORE — A lawyer of more than 29 years’ standing has been found guilty of professional misconduct after he took two loans amounting to hundreds of thousands from a client.

SINGAPORE — A lawyer of more than 29 years’ standing has been found guilty of professional misconduct after he took two loans amounting to hundreds of thousands from a client.

Mr Ong Teck Ghee, the managing partner of law firm Ong & Lau, took S$150,000 from Madam Zhao Qian on Dec 19, 2011, to invest in a project he was involved in, which would yield her a S$54,000 profit. The pair had met in a social context in the previous month and Mr Ong had invited her for meals subsequently, where they carried out discussions on investments.

Shortly after, he approached her for a further S$500,000 investment although the amount she eventually handed over is in dispute. Mdm Zhao claimed she handed over the full sum in two tranches, but Mr Ong disputed this, saying he received only S$170,500.

Mr Ong was to have repaid the money for both loans to Mdm Zhao through a series of post-dated cheques, but many of them were dishonoured or stopped by the lawyer. After receiving only S$51,500 from Mr Ong, Mdm Zhao started legal proceedings against him in the High Court, and also lodged a complaint with the Law Society.

In a report released yesterday, the disciplinary tribunal hearing the complaint against Mr Ong noted that the main dispute in the matter was whether the pair’s relationship constituted a solicitor-client one. Under the Legal Profession (Professional Conduct) Rules, lawyers cannot borrow money or valuable security from their clients.

It found that Mdm Zhao was indeed a client, since certain exceptions to permitted borrowings from a lawyer were not met — for instance, a loan would be allowed if the person had sought independent legal advice.

The tribunal, which was presided by Senior Counsel Cavinder Bull, also pointed out why these safeguards against borrowings from lawyers were important. The nature of a solicitor’s professional standing is such that it engenders trust and confidence in him and clients need to be safeguarded against the “special influence” that a solicitor occupies, the tribunal said, in its 21-page report. The tribunal therefore ruled that there was cause of sufficient gravity for disciplinary action against Mr Ong for the two charges he faced. A Court of Three Judges will decide on the penalties.

This is not the first time Mr Ong has been embroiled in a financial dispute. In 2010, he had coaxed Mr Teo Bee Tiong into an investment agreement of S$450,000 — which, if successful within a year, would pay out S$900,000 to Mr Teo, and S$450,000, otherwise. When Mr Teo received nothing at the end of the 12-month period, he filed a suit against Mr Ong.

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