Preece Family Tree

USED HIS CLIENTS' MONEY.

RHONDDA SOLICITOR'S ADMISSIONS.

LOST £700 IN LAW CASE.

FAILURE DUE TO STRIKE AND OTHER THINGS.

Mr. David Moy John, who has practised as a solicitor in Station-road, Porth, admitted to the assistant official receiver, Mr. E. V. Watkins, at the Pontypridd Bankruptcy-court on Tuesday that he had used money belonging to clients.

He stated that a receiving order was made on March 10. Creditors had obtained judgment against him, under one of which the sheriff was in possession. That was the cause of his filing his petition.

Gross liabilities amounted to £5,320 1s. 8d., of which £4,732 7s. 6d. was expected to rank for dividend.

The assets were estimated to produce £527 6s. 7d., leaving a deficiency of £4,205 0s. 11d. The unsecured liabilities, totalling £1,080, were in respect of clients' money received by him to invest on mortgage. Over £700 represented money as agent in respect of damages and costs.

With regard to the latter he had received the damages and not paid them over. He had also received costs which he had not paid over.

There was also an amount of £912 13s. 8d., money received from purchase of properties which had not been handed over to the vendors.

BORROWED FROM RELATIVES.

Seven hundred pounds was another item representing money borrowed from relatives and a moneylender, while £5772 14s. was money received in discharge of mortgages and not paid over to mortgagees. There was a further item of £102 16s. 6d. for counsel's fees.

Part of that sum was actually given to him to pay the barrister, but he returned it.

He was articled to a solicitor at Cardiff.

He joined the Army in 1915 and was demobilised in 1918. He was admitted as a solicitor in 1920, and subsequently practised in Station-road, Porth, borrowing £200 from a relative to start with. In the six years during which he practised he had not more than £300 a year. This amount was not sufficient to keep him, and he lived considerably above his means. It was in this way that he incurred a bank overdraft, and because of this he resorted to clients' money and used it for other purposes.

He had a joint account with his wife and intermingled the clients' money with his own. He first went to a moneylender about six months before the receiving order, when he borrowed £140. He had paid back £100.

ASSIZE DAMAGES NOT PAID.

The Assistant Official Receiver: "Did you cash some of the cheques you received?" - "No, never. I put them through my banking account."

"You have been asked by the official receiver to lodge an account showing the moneys received by you on behalf of and from clients which you have converted to other purposes, and on the other side of the account you show, as far as you are able, what you have done with the money.

"The account in question shows that you have received £3,475 6s. 6d. on behalf of and for fourteen clients?" - "That is so."

"And this money has been converted by you for purposes other than those for which it was intended. Do you say that you have been using clients' money for three years preceding the receiving order?" - "Yes."

"The result has been that in order to find money to pay something off the amounts mentioned you had to use someone else's money?" - "Yes."

"It has been more or less of a snowball for the last three years?" - "Yes."

"Did you some time late in 1926 act for a man called Fraser at the Swansea Assizes?" - "Yes."

"Your client lost the action and judgment was given for £500 and costs?" - "Yes."

"Did you pay over this £500 damages?" - "No. I paid off various other items."

"Did you receive a further cheque from the insurance company?" - "Yes, £212 6s. 5d."

"Did you pay the solicitors their tax costs?" - "No."

SPENT MORE THAN HE EARNED.

"I take it that you have not told the insurance company that you have not paid over the damages when they gave you a further cheque. They assumed you had paid for the damages?" - "I presume so."

"I take it that you could not have paid all the amounts I read out to you but for these cheques?" - "That is so."

"You have told the official received that you have had certain losses and expenses which you could calculate up to an amount of something like £3,000. Can you give us an explanation?" - "On my father's death I took charge of affairs, and shortly afterwards my mother became seriously ill. I think I can safely say that between both matters I spent about £290. I have come to the conclusion on reflection that I have been living above my income to the extent of between £250 and £300 a year.

"I paid a Mrs. Davies, of Hopkinstown, Pontypridd, £50, as I had wrongly advised her regarding a case, and also made up the purchase money of a house she was buying by £25.

"I estimate I had lost in regard to E. Davies, now dead, in regard to journeys to London, and interest, £350. I have lost in building my bungalow £170.

"I have paid £50 to John Williams because I settled a case without his instructions, and he insisted on his money in full.

"I paid a deposit on a house which I could not recover, and this was £30.

"I also lost £700 in a Chancery action in Railton v. Railton, and was out of pocket by £150.

"I lost on my car £100 and I paid £75 towards my father's tombstone.

"I am out of pocket re S. J. Thompson by about £20.

"My wedding expenses cost £75, and I estimate I have paid about £100 in extra interest through holding clients' money for a long time. These amounts make a total of £3,295."

"AMATEUR LEDGER."

The Assistant Official Receiver: "In regard to the client's ledger, how was that kept?" - "I am afraid it was not properly kept. I did not keep it myself."

"It was never balanced?" - "That is so. It was quite of an amateur nature."

"So you agree that the books of account kept by you were not proper books of the kind as should be kept by a solicitor?" - "I honestly admit that."

"You really say your books have never been balanced or totalled?" - "Well, no. They were made up out of my head or on a scrap of paper."

"Have you got those scraps of paper?" - "I am afraid not."

"It would be impossible for any accountant to get at your position from your books?" - "Quite."

"What are some other causes of your failure?" - "There were several strikes."

"Would they affect you as they would a tradesman?" - "Yes."

"Did you have any anticipation of an improvement in your position?" - "Well, I thought I had resources which I could go to, but they failed."

The Registrar remarked that the debtor had apparently made a full disclosure, and he would close the examination.

OBITUARY

Mr. David Moy John, Usk

The death has occurred at the age of 45 of Mr. David Moy John, joint proprietor with his brother-in-law, Mr. A. W. Butcher, of the Three Salmons Hotel, Usk.

Mr. John has been an enthusiastic supporter of the Rugby and cricket sections of Usk Athletic Club, and in his younger days played Rugby as a forward with many well-known clubs.

During the last War he saw service with the Royal Welch Fusiliers and reached the rank of captain. He was awarded the Military Cross for conspicuous bravery. He is survived by his wife and a baby daughter.

4-YEAR SENTENCE ON SOLICITOR.

£3,500 Misappropriated.

David Moy John, solicitor, of Porth, was sentenced to four years' penal servitude at Glamorgan Assizes yesterday for fraudulently converting clients' money to his own use. It was stated that John was a member of a good family, and had had a distinguished career in the Army. He became bankrupt last March, and altogether had misappropriated £3,500.

Passing sentence Mr. Justice Wright said he was bound to take a very serious view of the offence. By becoming a solicitor, John had joined a great and honoured profession, upon which the public placed complete reliance and trust. The greater the trust the more serious the betrayal.

Identical articles appeared on the same day in the following papers:
Leeds Mercury - page 3
The Scotsman - page 5

In very loving memory of David Moy John MC died Dec'r 10th 1940 aged 45 years.
Also Mr and Mrs Radcliffe Three Salmons Hotel from 1933-1964.