b'of inquiry to various banks, but had little success in retrievinguninformed, grew concerned by the ashen-faced partners the funds. By October the trust managers were aggressivelyhuddled behind closed doors. demanding the return of the money and contacted Allen Allen & Hemsley in Sydney. This coincided with the CroatianThen came a glimmer of hope: a week after Lehanes Governments call to Jim Dunstan. It had also investeddash to London, some of the money was found sitting in through Linpar and was caught in the same morass.a bank account in Singapore and due to be transferred to Switzerland on the following Monday. A call went through Lehane flew straight to London, but Powles refused to meetto partner Andrew Boxall in the Singapore office. Could he with him and instead returned to Sydney. In his briefcase,stop it? Over a weekend, Boxall achieved a miracle. Working Powles carried incriminating files detailing the money hewith Singapore barristers, he located a judge on a golf had stolen from individual clients to fund his gamblingcourse, arranged an injunction and stopped the transfer. addiction and mounting debts. What followed was anThe account held around US$20 million. I couldnt believe extraordinary series of events in which partners of the firmit, said Boxall. It was the difference between continuity found themselves surveilling Powles and giving chase whenand collapse for the firm. In total, around US$28.5 million he decided to leave Sydney by car, heading north. Theywas recovered, but when the dust settled AU$21 million caught up with him at Gosford and convinced him to returnwas still missing. to Sydney. It was only then they discovered the contents of Powless briefcase and came to appreciate the full extent ofThe firm instigated a plan to notify clients and inform the crisis that was about to unfold. the press. The announcement greatly concerned the Law Society of New South Wales. Under the Legal Profession A makeshift command centre was established in the officeAct 1987 (NSW), the Law Society had the right to appoint a of senior partner Hugh Jamieson who, along with Lehane,receiver if client money, held in trust, had disappeared. On shouldered much of the burden over the coming weeks.Christmas Eve in 1992, the Law Society resolved to do just Jamieson was always in his office when his team left forthat. JohnMarsden, the president of the Law Society who the day, and there when they returned in the morning.had just three days left in the role, knew this decision would The severity of the situation was not lost on anyonethealmost certainly be fatal for the firm and send many partners partners knew that the liability resulting from Powlessinto bankruptcy. He felt there was little choice. At 5pm conduct fell to all of them.Allen Allen & Hemsley was informed of the devastating news. A meeting of the Law Society Council would take Jim Dwyer, Stephen Walker, Tim LEstrange, Philip Kerr,place after the four-day holiday to formaliseAndrew Boxall, John Atanaskovic and Michael Ball werethe arrangements.among those supporting Lehane and Jamieson, working day and night trying to sort out the mess. Staff, as yet Over a weekend, Boxall achieved a miracle. he located a judge on a golf course, arranged an injunction and stopped the transfer. The account held around US$20 million. I couldnt believe it, said Boxall. It was the difference between continuity and collapse for the firm.200'