Hong Kong Law Society closes firm linked to crash-for-cash scam

Hong Kong’s Law Society has ordered the closure of a solicitors’ firm under investigation for its alleged role in a series of “crash-for-cash” scams in the city. The society’s council announced on Wednesday it would intervene in the practice of Raymond Lam & Associates, which will cease operations with immediate effect. The council also appointed Robertsons, another local law firm, as the intervention agent to handle matters pertaining to the closure. In a statement, the society said it found prima facie evidence suggesting employees at Raymond Lam & Associates had committed dishonest acts and failed to adhere to accounting rules. It said the latest move aimed at protecting the interests of the firm’s clients and the public, adding that a separate inquiry into individual lawyers’ conduct was ongoing. “If warranted, the Law Society will refer the case to the Tribunal Convenor of the Solicitors Disciplinary Tribunal Panel for disciplinary proceedings,” it said. “If any criminal offence is to be identified in the course of the investigation, the Law Society will refer the matter to the Hong Kong Police Force for investigation.” The council advised affected clients to contact Robertsons regarding cases previously handled by the firm. The intervention agent will take over the closed firm’s case files, but will not give legal advice or act for its former clients. Instead, it will hand over active cases to other firms at clients’ requests. Earlier this year, police conducted a high-profile raid at Raymond Lam Yat-wah’s office at the CMB Wing Lung Bank Centre in Mong Kok as part of a probe into an alleged fraud syndicate, accused of seeking exorbitant damages from drivers involved in minor or even fabricated traffic accidents. The raid came after police arrested two doctors and a married couple for allegedly masterminding more than 20 such scams, with officers investigating more than 100 suspicious cases. The largest claim exceeded HK$800,000 (US$139,441). The couple allegedly posed as drivers or passengers in taxis and cars, or as pedestrians in minor collisions, often reporting neck or minor injuries before filing large-sum civil lawsuits against other motorists and insurers. The force believes the case could involve offences of fraud, attempted fraud and using false documents. Raymond Lam & Associates later lodged an application in the High Court seeking to bar police from inspecting privileged documents, including confidential letters and medical documents of clients.