Former clients allege Cape Town attorney withheld RAF payouts

Several former clients of a suspended Cape Town attorney have lodged complaints with the Legal Practice Council (LPC) and its Fidelity Fund, alleging their Road Accident Fund (RAF) and medical negligence payouts were mismanaged or withheld.

The former clients said they were seeking to recover money they claimed was improperly deducted, retained or loaned by Celeste Julius, director of CJ Julius Inc.

Former clients allege millions missing from settlements

Julius was suspended by the LPC in August last year, following concerns about the administration of trust money and RAF settlement proceeds.

Although the former clients welcomed the suspension, they said they remained concerned about recovering their money and dealing with outstanding debts linked to their settlements.

One claimant alleged R9 million had been paid into the law firm’s trust account in connection with a medical negligence case.

“Julius [allegedly] borrowed R700 000 and R600 000 went missing – and no proper explanation was given,” the claimant said.

Another former client alleged Julius asked him to take out a bridging loan and give her the money, but failed to repay it.

“I had to pay a lot of interest and pay the new lawyer to stop her from receiving another portion of the RAF payout,” he said.

The affected former clients have also approached the Western Cape High Court in Cape Town, where the matter is ongoing.

Allegations include unexplained deductions and bridging loans

According to information supplied by the claimants, some settlement amounts were allegedly deducted or retained without adequate explanations.

Other allegations concern bridging finance and loans allegedly obtained using clients’ names, and demands for clients to redeposit money into an account associated with CJ Julius Inc.

Some of the loans remain outstanding, with finance companies allegedly continuing to hold clients liable for repayment.

The former clients also allege money deducted from their settlements for expert fees, medical-legal expenses and other services was not paid to the relevant doctors, experts or service providers.

Clients face demands for unpaid medical bills

One claimant said Julius had allegedly taken R200 000 from an earlier RAF payout, promising to repay it in monthly instalments of R10 000.

“She never did. There was also an unexplained deduction from the second payment paid into her trust,” the claimant said.

In one case, a doctor is reportedly owed R1.3 million.

Some service providers are allegedly pursuing former clients for payment, despite the clients believing the amounts had already been deducted from their settlements.

The allegations also include substantial charges for bills of costs, accommodation and travel.

In one instance, an RAF offer was allegedly forged and presented to a client.

The claimants said the alleged financial losses have left them struggling with demands for payment from bridging finance companies, medical practitioners and other service providers.

LPC confirms disciplinary action against suspended attorney

LPC spokesperson Kabelo Letebele said the allegations raised serious questions about the handling of trust money, possible unlawful deductions, fraud and professional misconduct.

The LPC was dealing with the matter and its provincial director had been appointed as curator, Letebele said.

“The LPC confirms the necessary disciplinary process was undertaken when complaints were received. The practitioner is suspended and the court will consider the LPC application to have her struck from the roll.”

Letebele urged members of the public to exercise caution and verify the credentials and background of legal practitioners before employing them.