Lawyers providing free advice

Pro Bono Dunedin lawyers are still looking into claims of the victims of jailed former Dunedin lawyer John Milne whose Ponzi scheme fleeced them of $2.8 million of their savings.

The six lawyers are giving free advice to the victims, to determine whether they could be successful in making a claim for compensation from one of the Law Society's two fidelity finds.

Milne was 79 when jailed in November for more than eight years, and had earlier placed himself in bankruptcy, leaving no assets to sell to compensate his victims.

Downie Stewart solicitor David Sim, who is a committee member of the Otago branch of the Law Society, is one of the six lawyers.

Mr Sim was contacted for an update, but responded that for confidentiality reasons the lawyers could not discuss their respective clients' cases. Nor could he estimate a time frame.

''We are advising our respective clients in relation to their claims at the moment,'' he said.

It was understood there was a group of 11 claimants, but more of Milne's 35 victims might also have taken the opportunity to contact the lawyers.

Mr Sim did not verify how many had come forward.

Any claims would not be straightforward, as a claimant would have to prove they lent their cash to Milne as a personal loan, as opposed to giving it to him as an investment, as the latter is not covered for compensation from the Law Society funds.

Mr Sim said last year that the lawyers were supplying advice free, but could go on to represent a client, if a formal claim was made to the Law Society.

It was an Otago branch investigation in 2012 which led to the Serious Fraud Office taking over the case, and successfully laying 34 fraud charges.

simon.hartley@odt.co.nz

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