Australian Lawyers Weekly report that the former CEO of a collapsed law firm has been ordered to repay $430,000 worth of shares for fraudulently misleading an investor about the firm’s success.
In 2016 and 2017, former legal practitioner Cedric Ng agreed to purchase two tranches of shares from SHS Law under the impression it was highly successful and there were unique opportunities to return to the profession. While being fed lies by the CEO of the safety of his investments, SHS Law was close to collapse.
Appearing before the NSW Supreme Court, Mr Ng detailed allegations against Joshua Chan, the firm’s CEO, and an alleged agent responsible for attracting investors. Over three investments, Mr Ng paid the firm $430,000 on promises that it would be worth it.
Mr Ng claimed both Mr Chan and agent Bao “Jackson” Ming Xian – referred to as only Jackson by the court – “made fraudulent, misleading and deceptive statements about the profitability, operations and business prospects of SHS Law”. Mr Chan has denied these statements and that Jackson acted expressly as his agent.
In 2017, and shortly after the last investment, SHS Law ceased providing professional services after the Law Society of NSW stepped in to investigate an allegation Mr Chan was withdrawing funds from the firm’s trust and general accounts without authority.
Looks like SHS Law was a short lived affair
