TWO Liverpool solicitors who allowed their busy firm's accounts to become a "complete mess" were fined a total of £8,000 yesterday. Action was taken against Michael Ellenbogen, 43, and Andrew James, 52, after a Law Society inspector found the books would not balance. The Solicitors' Disciplinary Tribunal heard that the ledgers had not been checked properly since January 2003 - some nine months before the official visit. They had also failed to deliver two accountants' reports for the 2001 and 2002 financial years. Both solicitors, partners in Howard Jackson and Co, appeared at the hearing in central London to admit five allegations. They included failing to keep their books in order and failing to carry out reconciliations. Mr Ellenbogen, a family and personal injury lawyer, runs the firm's office at Belle Vale Shopping Centre, Childwall Valley Road. Mr James, who specialises in conveyancing, works from premises in Lark Lane, Liverpool. Ian Ryan, for the Office for the Supervision of Solicitors, said: "The inspector was not able to compute the total liabilities to clients and could not tell whether sufficient funds were in place to meet liabilities." The accountant later discovered a cash shortage of £1,379.08 that had existed for two and a half years, the tribunal heard. The error was rectified by the partners immediately after the inspection in October 2003. That mistake was caused by overpayments and incorrect transfers on nine different matters. Mr Ryan said the computer accounts system could not produce a proper balance sheet to show outstanding liabilities. He added: "It is clearly a serious matter for the books of account to be in such disarray. "The books were in a complete mess. This was through negligence and chaos rather than a deliberate act." Although the tribunal heard the firm had "historical problems" with bookkeeping, it was made clear that no kind of dishonesty was alleged against it. Jon Goodwin, representing both lawyers, said: "They offer their profound apologies to the tribunal and the profession for the breaches. They are deeply ashamed they are here today." Mr Goodwin said Mr Ellenbogen and Mr James had incurred bills in excess of £6,000 in a bid to remedy the accounts blunders. Fining both lawyers £4,000 each, chairman Anthony Gibson said the tribunal had "great sympathy" with them for the computer problems. They agreed to pay costs of £2,500 each. | 
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