Michael Ghobrial: Penrith lawyer spent clients’ cash on cocaine, gambling
A once respected western Sydney lawyer defrauded his clients of almost $500k so he could feed his cocaine and gambling habits. He fought back tears, with his mother by his side, as he was sentenced for his shameless swindle.
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A former lawyer from western Sydney who defrauded his clients of almost half a million dollars to feed his out of control drug and gambling habits will spend his first night behind bars.
Disgraced solicitor Michael Ghobrial, 45, who was the principal of Ghobrial Legal in Penrith until early 2019, faced up to five years in jail after pleading guilty to two counts of larceny as bailee over the misappropriation of almost $500,000 from clients’ trust accounts.
On Friday, Judge Stephen Hanley jailed Ghobrial for a maximum of four years, but he may only serve half this time after the court found he would be vulnerable to “abuse and exploitation” from other inmates in custody.
His sentencing came after a prior judgment date was delayed due to him becoming violently ill in the courtroom in the moments before he was due to learn his fate.
The extent of his fall from grace as a once-respected lawyer with some of the country’s biggest firms, including PricewaterhouseCoopers, was heard in court, with his professional conduct first coming under notice as early as 2013.
It was heard that the University of Sydney graduate had been reprimanded by the Law Society of NSW that year and was fined $4000 after an investigation found he had failed to maintain clients’ trust accounts and records.
In 2016, the law society conducted another investigation into trust account irregularity over the payment of barrister fees.
The following year, Ghobrial narrowly avoided a criminal conviction after he was charged with possessing cocaine.
Speaking to the court, Ghobrial admitted he had used funds from the trust accounts of two clients to support his daily cocaine habit and “uncontrollable” gambling addiction.
“The profession as a solicitor, when we are admitted, we take an oath that we will serve our clients and be trustworthy,” he said.
“I dishonoured that trust to my clients over a period of six months.
“I’m very embarrassed by my actions. I’ve let my clients down.”
The court heard Ghobrial’s life began to spiral out of control when he turned to illicit drugs in late 2017 following a marriage breakdown and the death of a close family member.
Between April and October 2018, Ghobrial made almost 120 withdrawals, some amounting to $4000 a day, from his clients’ accounts.
By October, the entirety of the funds, worth more than $493,000, had been emptied from the accounts.
In December, when his clients made numerous attempts over several months to receive their funds, Ghobrial made up excuses as to why the funds could not be deposited.
He consistently avoided his clients’ phone calls and emails, and cancelled a string of office appointments, claiming he was ill or on holidays.
When one of the clients urgently requested the return of her funds, Ghobrial agreed to deposit $20,000 into her account, however, only half the money was received.
The court heard that in order to hide his criminal offending, he hid trust account books from his office accountant.
In January 2019, his clients raised concerns with the law society who were advised Ghobrial was already under investigation.
He was subsequently arrested and charged by police in May 2019.
In sentencing, Judge Hanley said the offending was “persistent, frequent and calculated”.
“It was a grave breach of trust. It impacts the rest of the legal profession and has a cost to other solicitors and their insurances,” Judge Hanley said.
“It was a deliberate and ongoing exploitation of that position of authority he held.
“This type of offending has a significant impact on public confidence in the legal system.”
Holding back tears, Ghobrial told the court he was ashamed.
“I’ve failed not only me, but the people I care for. I’ve failed my profession. I’ve failed my clients,” he said.
“I am embarrassed and ashamed. I am remorseful that I put my clients through that hell.”
However, a report tendered to the court found Ghobrial had little insight into his offending and failed to see how his victims were out of pocket.
Ghobrial will be eligible for parole in September 2022. He is unable to practice as a lawyer in Australia.