Professional misconduct by a chartered accountant upheld after fraudulent investment conduct, dishonoured cheques, and proper disciplinary procedure.

A chartered accountant was found guilty of professional misconduct and other misconduct where he admitted acting as director and authorised signatory of the investment companies, which operated from his office, and the record showed his active involvement in inducing investments, accepting substantial funds, and issuing dishonoured post-dated cheques. The High Court held that the disciplinary material had been supplied, written representations considered, and the procedure under the Act followed, so the belated complaint of denial of cross-examination failed. The findings were upheld and the recommendation to remove his name from membership for one year was approved.

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Issues: Whether the respondent chartered accountant was guilty of professional misconduct and other misconduct, and whether the disciplinary findings and the proposed penalty of removal from membership for one year were liable to be approved.

Analysis: The respondent had admitted that he was a director and authorised signatory of the companies through which the complainant's money was invested, that the companies operated from his office, and that he actively ated in their affairs. The record showed that he induced the complainant to invest at an unusually high return, accepted substantial sums, issued post-dated cheques which were dishonoured for insufficiency of funds, and did not rebut the allegations by evidence. The disciplinary authorities had supplied the material, considered the written statements and representations, and followed the procedure prescribed under the Act, so the plea of denial of opportunity to cross-examine was rejected as belated and unfounded.

Conclusion: The findings of professional misconduct and other misconduct were upheld, and the reference recommending removal of the respondent's name from the list of members for one year was approved.

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