Hector Ekes: Doubt over Sydney law firm Gardner Ekes’ trust account
A Sydney solicitor directed a client to deposit thousands of dollars in legal fees into his account rather than in the law firm’s trust account, it can be revealed.
NSW
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A Sydney solicitor directed a client to deposit thousands of dollars in legal fees into his account rather than holding it on trust in the law firm’s trust account.
Hector Ekes’ CBD firm, Gardner Ekes, closed last year after a former employee had the firm wound up when it failed to meet a $5000 deal negotiated when she left the firm.
Since then, a number of people, including staff, barristers and clients, have come forward to paint a dire picture of how the once-flourishing firm was managed.
As detailed in The Saturday Telegraph last week, the NSW Law Society is investigating allegations that legal fees weren’t managed properly and clients were intimidated.
Despite the Law Society, which said it couldn’t comment on ongoing investigations, approaching several former clients and employees over the past year, no action has been taken.
It can be revealed that Mr Ekes advised a client and a second person who paid fees on her behalf to deposit legal fees held on trust into a National Australia Bank (NAB) account.
Law practice trust accounts are heavily regulated in a bid to avoid money going missing and ensure the funds are used to run legal matters with clients’ knowledge.
On September 10, 2015, Ekes emailed former client Susan Huybers requesting “$25,000 in trust to commence work immediately”.
The bank account details listed were not the firm’s trust account, which is registered with the NSW Law Society, but a NAB account, which Ekes wrote was under the name “Gardner Ekes”.
Ms Huybers, who hired Ekes to represent her in civil proceedings involving an accountant who defrauded her, said she deposited her legal fees into that same account several times.
Bank statements seen by this newspaper show Ms Huybers transferred $20,000 in September, 2015 and $5000 in March, 2016, into the NAB account.
According to Legal Profession Uniform Law, trust money must be deposited into a trust account and can only be withdrawn under client directions.
In an email to The Saturday Telegraph last week, Ekes said the firm only banked with “St George”.
However, the emergence of emails from Ms Huybers, who a cost assessor found was overcharged by Gardner Ekes to the tune of $100,000, and information from a former employee appears to contradict that.
Asked about the use of the NAB account for trust funds, Mr Ekes, via his solicitor, said he would be in a position to reply after he obtained bank records.
The former employee, who left the firm in 2019, claimed the firm’s trust account was with Westpac before switching to St George in 2018.
“When we did the first initial invoice and cost agreements, we only gave out the Westpac account to clients,” she said.
On seeing the account number given to Ms Huybers, the former employee confirmed it was not the firm trust account. Ms Huybers said she was also told by another former colleague of Mr Ekes that the NAB account was Mr Ekes’ personal account.
In line with claims from former clients, the employee said Ekes sometimes made demands for legal fees without issuing an invoice and staff were directed to create invoices after the fact.