Well-known Umhlanga-based attorney Shahir Ramdass is facing suspension by the Legal Practice Council (LPC) over allegations he “rolled” trust fund money in a property transaction, failed to wind up a deceased estate after seven years and “transferred”, without authority, R5m from another deceased estate.
The LPC filed an application for his suspension in the Pietermaritzburg high court in July this year after a probe into three complaints against him by an investigations committee.
The committee noted he had “simply refused” to co-operate with it and withheld documentation to support “his narrative”.
The matter has been set down for hearing in September.
The LPC application came to light after it was attached to a separate, urgent application which came before Durban high court acting judge Paul Wallis on Monday in which attorney Jenna Jones, acting on behalf of a client, said Ramdass was refusing to pay R750,000 he was holding in trust after the sale of a property in Zimbali.
Jones said her concern was prompted by an informal conversation with a colleague who had brought the LPC’s suspension application to her attention.
In spite of several requests and demands, she said Ramdass had not paid the money to the trust account of another firm of attorneys.
He had given several excuses, including he was out of office, his office server had been breached and he could not access his bank accounts and he required an addendum.
Jones said she contacted the LPC’s attorney of record in the suspension application, Siva Chetty, to ask if he could assist.
“He suggested I immediately contact the LPC as they are receiving a plethora of other requests and complaints against Ramdass.”
She subsequently lodged a complaint.
When the matter was called on Monday, advocate Sian Clarence reported after receiving the urgent court papers late last week, Ramdass had transferred the money. Wallis ordered he pay punitive costs.
In the LPC application, legal officer Wade Paul said investigations showed Ramdass had “failed to act honourably”, had a total disregard for the interests of clients and was possibly guilty of misappropriating or mishandling trust monies.
Two of the three complaints against him related to deceased estates. The other related to the purchase of two upmarket Umhlanga properties by a doctor which, seven years later, had not been transferred into his name.
While Ramdass had not co-operated with the investigators, he denied fraud or negligence. He claimed he had been dealing with 400 transfers and said the doctor's money had not been “identified” and had remained in his suspense account.
This is misappropriation of trust monies
— Wade Paul, legal officer
Paul said: “A disturbing feature is the ex facie documentation shows he deposited trust money into a business account, which is totally unacceptable. It is shocking an established firm was unable to identify payments. The excuse he was not able to, shows a lack of internal control. It subsequently transpired the money was used for another transaction. This is misappropriation of trust monies,”
Paul said Ramdass’s narrative in this respect was a “blatant lie”.
In the first complaint regarding a substantial deceased estate, of which a minor was one of the beneficiaries, the inspection committee again noted Ramdass had not co-operated with the investigation.
At the time of the inspection, seven years later, only a draft liquidation and distribution account had been prepared by him.
The complainant had alleged Ramdass, as administrator, had not paid levies in respect of one of the properties in the estate and had stopped paying her and her son’s medical aid contributions in 2018.
Paul said Ramdass had not furnished the inspection committee with any of the requested records. Ramdass claimed they were archived.
In the second deceased estate matter, the executor complained that Ramdass, who was the administrator, had taken R5m out of the account without authority and had been unable to account for it.
Ramdass, in his response to the complaint, said he had moved the funds to a Nedbank corporate saver account.
However, Paul said he had not given the investigators a complete set of bank statements.
The Hawks were investigating a complaint of fraud.
“This complaint highlights the gravity of his conduct. He appears to have no regard for the interest of the beneficiaries of the estate let alone instructions from the executor.
“The complainant suspects fraud has taken place.”
Paul said Ramdass simply refused to co-operate.
“At a disciplinary hearing documentation can be presented under the pain of subpoena and a true and proper picture may unfold and test the statements made by Ramdass in his response to the complaints against him.
“If he had nothing to be apprehensive about, one would have expected him to submit each and every statement requested.”
Ramdass did not respond formally to a request for comment but is expected to oppose the application.
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