Law Society v Leong Pek Gan: Disciplinary Proceedings for Conflict of Interest and Unlicensed Moneylending
In Law Society of Singapore v Leong Pek Gan, the Court of Three Judges addressed an originating summons by the Law Society against Leong Pek Gan, an advocate and solicitor, concerning potential disciplinary action under the Legal Profession Act. The Law Society alleged that Leong acted for both parties in an unlicensed moneylending transaction, creating a conflict of interest and failing to report the transaction. The court found Leong had breached her professional duties and ordered her suspension from practice for two-and-a-half years.
1. Case Overview
1.1 Court
Court of Three Judges of the Republic of Singapore1.2 Outcome
Respondent suspended from practice for two-and-a-half years.
1.3 Case Type
Regulatory
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The Law Society sought disciplinary action against Leong Pek Gan for acting in a conflict of interest and facilitating unlicensed moneylending. The court suspended her for two-and-a-half years.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| THE LAW SOCIETY OF SINGAPORE | Applicant | Association | Successful in application | Won | Dhillon Dinesh Singh, Wang Jingyi |
| LEONG PEK GAN | Respondent | Individual | Suspended from practice | Lost | Michael Khoo SC, Josephine Low, Chiok Beng Piow Andy |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Judge of Appeal | No |
| Andrew Phang Boon Leong | Judge of Appeal | Yes |
| Judith Prakash | Judge of Appeal | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Dhillon Dinesh Singh | Allen & Gledhill LLP |
| Wang Jingyi | Allen & Gledhill LLP |
| Michael Khoo SC | Michael Khoo & Partners |
| Josephine Low | Michael Khoo & Partners |
| Chiok Beng Piow Andy | Michael Khoo & Partners |
4. Facts
- The Respondent acted for both the Vendors and the Purchaser in a property transaction.
- The transaction was structured as a sale and purchase with an option exercisable within six months.
- The Vendors granted a power of attorney to the Purchaser's managing director, Benson Ho.
- The Law Society alleged the Respondent acted in an unlicensed moneylending transaction.
- The court found the transaction was a thinly disguised loan secured by the Option and POA.
- The Respondent knew or had reasonable grounds to believe the transaction involved unlicensed moneylending.
- The Respondent failed to report the transaction as required by the CDSA.
5. Formal Citations
- Law Society of Singapore v Leong Pek Gan, Originating Summons No 4 of 2015, [2016] SGHC 250
6. Timeline
| Date | Event |
|---|---|
| Originating Summons No 4 of 2015 filed | |
| Written judgment issued finding due cause for disciplinary action | |
| Parties heard on appropriate sanction | |
| Grounds of decision issued | |
| Suspension effective |
7. Legal Issues
- Conflict of Interest
- Outcome: The court found that the Respondent was oblivious to the potential conflict of interests and her advice was woefully inadequate.
- Category: Substantive
- Sub-Issues:
- Failure to advise of potential conflict
- Preferring interests of one party over another
- Related Cases:
- [2007] 1 SLR(R) 240
- [1993] SGDSC 9
- [2007] 3 SLR(R) 477
- [2009] 4 SLR(R) 674
- [1999] 3 SLR(R) 596
- Unlicensed Moneylending
- Outcome: The court found that the Respondent knew or had reasonable grounds to believe that the transaction involved unlicensed moneylending.
- Category: Substantive
- Failure to Report Criminal Conduct
- Outcome: The court found that the Respondent failed to report the transaction, which she knew or had reasonable grounds to suspect involved a form of criminal conduct.
- Category: Substantive
8. Remedies Sought
- Disciplinary Action
- Suspension
- Striking off the roll
9. Cause of Actions
- Breach of Professional Conduct
- Failure to Advise
- Conflict of Interest
- Facilitation of Illegal Activity
10. Practice Areas
- Professional Responsibility
- Regulatory Law
11. Industries
- Legal Services
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Law Society of Singapore v Manjit Singh s/o Kirpal Singh and another | Court of Appeal | Yes | [2015] 3 SLR 829 | Singapore | Cited for the objectives of disciplinary action: punishment, deterrence, and protection of public confidence. |
| Law Society of Singapore v Chiong Chin May Selena | High Court | Yes | [2005] 4 SLR(R) 320 | Singapore | Cited for the importance of public perception and confidence in the legal profession. |
| Law Society of Singapore v Vardan Vasantha Lakshmi | High Court | Yes | [2007] 1 SLR(R) 240 | Singapore | Cited as a precedent for a two-year suspension for conflict of interest and indifference to clients' interests; distinguished on the facts. |
| The Law Society of Singapore v Yoong Tat Choy Joseph | Disciplinary Committee of the Law Society | Yes | [1993] SGDSC 9 | Singapore | Cited as a precedent for facilitating an illegal moneylending transaction; distinguished on the facts. |
| Law Society of Singapore v Tan Phuay Khiang | High Court | Yes | [2007] 3 SLR(R) 477 | Singapore | Cited as a precedent for a two-year suspension for preferring the interests of a moneylender; distinguished on the facts. |
| Law Society of Singapore v Arjan Chotrani Bisham | High Court | Yes | [2001] 1 SLR(R) 231 | Singapore | Cited for the principle that the minimum punishment for falling below standards of integrity is suspension. |
| Law Society of Singapore v Uthayasurian Sidambaram | High Court | Yes | [2009] 4 SLR(R) 674 | Singapore | Cited as a precedent for suspension for conflict of interest and disregard of professional standards. |
| Law Society of Singapore v Ng Cher Yeow | High Court | Yes | [1999] 3 SLR(R) 596 | Singapore | Cited as a precedent for suspension for acting for both parties and failing to disclose an 'under the table' arrangement. |
| Lie Hendri Rusli v Wong Tan & Molly Lim (a firm) | High Court | Yes | [2004] 4 SLR(R) 594 | Singapore | Cited for the principle that the level of sophistication of the client affects the standard of care that a solicitor should be held to. |
| Law Society of Singapore v Ganesan Krishnan | High Court | Yes | [2003] 2 SLR(R) 251 | Singapore | Cited as an example of a case where a solicitor faced disciplinary proceedings due to inability to discharge duties adequately. |
| Law Society of Singapore v Leong Pek Gan | High Court | Yes | [2016] SGHC 165 | Singapore | The earlier judgment on liability in this case. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Legal Profession Act (Cap 161) | Singapore |
| s 83(1) of the Legal Profession Act (Cap 161, 2009 Rev Ed) | Singapore |
| Moneylenders Act (Cap 188, 2010 Rev Ed) | Singapore |
| s 3 of the Moneylenders Act | Singapore |
| Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap 65A, 2000 Rev Ed) | Singapore |
| s 39(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap 65A, 2000 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Unlicensed Moneylending
- Conflict of Interest
- Legal Profession Act
- Power of Attorney
- Option to Purchase
- Disciplinary Proceedings
- Professional Misconduct
- Conveyancing
- Solicitor's Duties
- Integrity
- Probity
- Trustworthiness
15.2 Keywords
- disciplinary proceedings
- conflict of interest
- unlicensed moneylending
- legal profession
- suspension
- solicitor
- advocate
16. Subjects
- Legal Ethics
- Professional Responsibility
- Regulatory Law
- Conflict of Interest
- Moneylending
17. Areas of Law
- Legal Profession
- Disciplinary Proceedings
- Professional Conduct
- Conflict of Interest
- Moneylenders Act