What if the registered firm suddenly close down and disappear with the client’s money?
What this means is similar to your lawyer ceased his firm and run away with all that money in his “client’s account”. Below see two newspaper reports on missing money in Client’s Account.
Investigation will be called upon. The bank would have to give the authorization of the money transaction in the client’s account. The registered name of the client’s account will be responsible for the account misappropriated. Well, if the person has gone missing? It will be reported as a crime as well as a missing person.
It is called “Criminal Breach of Trust” or CBT in short. And, upon conviction, the Board will suspend the practice of the Registered Estate Agent and charge him under S.24 of VAEP Act, 1981. Normally, a registered firm will never come to this stage. Even at the death of its registered person, there is a process which the law specifies the proper procedure to deal with it.
S.24 (1) (a) has been convicted of any offence involving fraud or dishonesty or moral turpitude;