Former clients of closed Hong Kong law firm demand the speedy return of HK$100 million frozen in its accounts
- Wong, Fung & Co was shut down by the Law Society after a clerk there was accused of misappropriating funds and other grievous breaches
- Now, scores of clients say they have been unable to complete the purchase of homes as their money, which had been deposited with the firm, has been frozen
A group of victims affected by the closure of a major conveyancing firm that had misappropriated client funds has demanded the swift return of HK$100 million (US$12.9 million) belonging to at least 79 families hoping to buy new homes.
Last month, Wong, Fung & Co was shut down by the Law Society, which regulates the city’s 12,000 solicitors and some 900 law firms. It said a former clerk had misappropriated an unspecified sum of money from clients, and had committed other grievous breaches, such as overdrawing money from client accounts and allowing unqualified employees to sign off on client documents that required authorisation.
But on Sunday, a group of affected clients said they wanted the Law Society to release their funds, which had been frozen in the accounts of the law firm since its suspension, noting many of them had been unable to complete the purchases of new homes as they were unable to access their money or raise more.
“My deposit and stamp duty amounting up to HK$800,000 are now frozen in Wong, Fung & Co’s accounts. I had to borrow hundreds of thousands from my parents’ pension to pay for the house,” said a woman in her early 30s, who only wished to be identified by her surname, Chan. She had been planning to move into the house after marrying her boyfriend later this year.
“Everybody knows how hard it is for young people in Hong Kong to buy homes. I don’t know how many years it will take for me to get that money back now,” she said through tears at a press conference.
Another affected client said he hoped the government could intervene and prevent the other law firms that had taken over their cases from charging for their services.
The Law Society ordered the closure of the law firm on December 24, but did not disclose the exact number of clients affected or the amount of money involved, saying only that an investigation was under way. An insider had told the Post about 10,000 clients were affected.
The Law Society also did not reveal whether certain lawyers would be held accountable.