Lawyers’ breach of trust cases cause RM192m losses since 2023

Lawyers' breach of trust cases have resulted in over RM192 million in losses since 2023, according to the Commercial Crime Investigation Department (CCID). Property-related matters, including house and land purchases, ownership transfers, and estate administration, were the most common types of cases. Delays in paperwork, third-party payments, and the misuse of client funds were cited as reasons for the financial losses.

CCID Director Rusdi Mohd Isa stated that police would not rely solely on the explanations provided by those under investigation, but would verify them against facts and evidence. The CCID recorded 181 cases involving lawyers between 2023 and July 2026, with investigations proceeding if there were indications of misuse or dishonesty.

Among the practices uncovered were delays in returning clients' money, using funds for unrelated purposes without permission, and transferring money from client accounts to other accounts. Some lawyers allegedly threatened clients, stopped meeting them, or issued dishonoured cheques. Lawyers suspected of misusing funds sometimes delayed payments, gave false explanations about document completion, or continued to provide assurances while settling matters.

Rusdi emphasized that a person's profession would not affect the way police handle an investigation and that the CCID would work with the Malaysian Bar to address cases involving professional misconduct. Between 2023 and July 2026, 43 people were arrested under Section 409 of the Penal Code for criminal breach of trust, with 34 subsequently charged in court.

While the number of cases was relatively small compared to other commercial crime cases, the losses could be substantial as the money involved often belonged to clients and was held in trust for various transactions. The CCID urged the public to engage registered lawyers and monitor their transactions closely, reporting any suspicious activity to the authorities.