Auditors probe lawyer's affairs

FAMILY TRUST: Neville and Morag Lush took concerns about Mr Porteous to the Law Society. PHOTO/GLENN TAYLOR HBT14324802

One of Hastings' longest-serving lawyers has closed his firm amid an investigation into alleged misuse of a trust fund.

David Porteous, a lawyer in Hawke's Bay for 32 years, confirmed last night he had laid-off his staff and closed, and that Law Society auditors had been in his office this week examining files as a result of a complaint by long-time client Neville Lush.

"This is not the way I'd want to go out," said 63-year-old Mr Porteous. He's voluntarily surrendered his practising certificate and promised he won't be seeking renewal before the investigation is complete, but added: "I don't think I will be applying to renew it."

"The Law Society has begun an investigation, and the auditors have been here for two days this week," he said. "They've told me they're coming back."

"I don't believe there are any irregularities in the trust accounts, and any issues that are found I'll deal with," he said.

While he said he couldn't comment on specifics of the complaint, Mr Porteous said: "He [Mr Lush] still has funds in the trust account and they are available to him at any time [through the appointed power of attorney who has taken-over management of the firm's ongoing affairs]."

Mr Lush, at home in Hastings last night with wife Morag, said that appeared to be a "turnaround", because he had been having difficulty finding out how much was in the account.

Having left the money with the lawyer and established a family trust "about eight or nine years ago" in the wash-up after having to sell his business following major heart surgery, he said he had accessed funds for such items as medication, and his annual bowling club fees.

He believed at least $50,000 plus interest remained and accepted assurances by Mr Porteous that the funds were safe and earning interest. "He's been our lawyer for 30 years," Mr Lush said.

But he said he did not receive statements when they were requested, and became alarmed when he saw figures which appeared to show interest much less than expected.

"A month or so ago I walked in and said I've got to know about my money," Mr Lush said.

He said the lawyer told him he had been busy with other matters, but would see him a few days later and have it "sorted".

"Well," said Mr Lush, "that never happened."

New Zealand Law Society communications manager Geoff Adlam, restricted by the Lawyers and Conveyancers Act, was yesterday unable to confirm or deny the investigation is taking place, although the society does regularly publicly disclose when decisions have been made to discipline lawyers.