Tasmina admits ‘failings’ in trust fund loan
A FORMER Nationalist MP has admitted she failed to properly record financial accounts at a struggling law firm.
Tasmina Ahmed-Sheikh was yesterday forced to accept she had breached strict rules for solicitors while a partner at Hamilton Burns.
Mrs Ahmed-Sheikh and former colleague Alan Mickel faced a Law Society probe after concerns were raised about money being taken out of a trust fund for which they were signatories.
The pair were initially accused of ‘financial impropriety’ following an investigation in 2015. Yesterday,
‘Disregard for the rules’
a Scottish Solicitors’ Discipline Tribunal (SSDT) hearing at Perth Concert Hall heard concerns were raised after an inspection of Hamilton Burns’ finances showed money was taken out of a trust and ‘loaned’ to the firm.
The Law Society said both Mrs Ahmed-Sheikh and Mr Mickel showed ‘disregard for the rules’ over a prolonged period.
They failed to properly record financial transactions and did not realise there was a conflict of interest as the trust fund was classed as belonging to a ‘client’.
The hearing was told Mrs Ahmed-Sheikh was a partner at Hamilton Burns and responsible for funds held at the firm.
In 2012, Mr Mickel, who was also a partner and director, set up a trust fund for his sister. During an inspection in 2015, it was found that money had been taken from the trust fund and put into Hamilton Burns, which was struggling financially.
Shortly after this Mr Mickel resigned when he was advised there had been a conflict of interest, as the trust was classed as a ‘client’ of the firm – something he claims to have been unaware of.
The SSDT heard Mr Mickel and Mrs Ahmed-Sheikh ‘genuinely’ believed the money was Mr Mickel’s despite it being held in the Hamilton Burns client fund.
The Law Society of Scotland is pushing for both Mrs AhmedSheikh and Mr Mickel to be found guilty of misconduct – which could result in them being struck off.
Grant Knight, fiscal for the Law Society, told the panel: ‘Both of the respondents should have known what the account rules were. This is a disregard for the rules in relation to how you manage client funds.’
However, he noted the society no longer accused the pair of ‘financial impropriety, adding: ‘While the Society accepts the view held by both was genuine... they should have known better.’
Mrs Ahmed-Sheikh resigned from Hamilton Burns in 2015 after becoming the MP for Ochil and South Perthshire. The mother of four lost the seat at the 2017 general election.
Dorothy Bain, QC, representing Mrs Ahmed-Sheikh, stated that at no point did her client derive any ‘personal benefit’, nor did she sign documents which would lead her to believe the fund was a ‘client’.
She said: ‘It’s clear now she should have analysed the state of the firm with more vigour vis-a-vis the trust.’
The hearing is expected to conclude today.