No decision has been made yet on whether investors who are millions of dollars out of pocket because of former Dunedin lawyer John Milne will club together to seek any financial compensation.
In September last year, Dunedin lawyer Alistair Paterson launched an ''affected persons register'' to encourage former clients of Milne to come forward about loans they made to him. Only five of the 35 affected clients subsequently registered an interest.
Last month Milne was found guilty of professional misconduct over his handling of almost $3 million of missing client funds, and was struck off the Register of Lawyers by the New Zealand Lawyers and Conveyancers Disciplinary Tribunal.
The New Zealand Law Society labelled Milne's actions ''reprehensible'' and as having ''grossly abused'' clients' trust.
Milne (77), who is bankrupt and whose assets are overseen by the Official Assignee, remains the subject of a separate Serious Fraud Office investigation, which could result in charges of dishonesty. Milne took a total of $2.86 million from 35 clients over about 20 years.
Key to any compensation claim is whether the money was taken as loans or investments, while the timing would determine which of two Law Society fidelity funds may assist with compensation.
When contacted yesterday, Mr Paterson said the written decision of the disciplinary tribunal was yet to be released, so it could be considered by lawyers, while the outcome of the SFO investigation was another factor delaying any decision on what the former clients might do.
Included in the issues Mr Paterson wanted to canvass with the clients was whether they wanted to take action against Milne's former employer, Dunedin solicitor Craig Paddon; possible actions regarding making a claim against the New Zealand Law Society's fidelity fund; and the clients' tax positions with the IRD.
