CSA to mull over disciplinary action against Kveps for conflict of interest in favour of TM security
BNN: Baltic News Network (bnn-news.com) published on December 6th, 2011 the following article which refers to pietiek.com:
What do some banks have in common with some attorneys? You can trust neither of them. In the banking business we see this in Krajbanka collapse, dragging down also the bank’s professional reputation. The portal www.pietiek.com informs about another case, which could lead to a similar outcome, but in the profession of an attorney.
Latvian Council of Sworn Advocates (CSA) will decide on Tuesday, December 6, whether to launch a disciplinary action against the sworn attorney Martins Kveps. The case could round up with Kveps being excluded from the circles of sworn attorneys, CSA Chairwoman Guna Kaminksa told Pietiek.com.
Kveps is reproached for failure to comply with the client’s interests and conflict of interest. The CSA has already asked an explanation from Kveps, while the attorney himself refused any comments to Pietiek.
The complaint was submitted on November 11 by the potash company Kālija parks, which stresses that back in April 2010 Kveps pretended to represent their interests. Thus, he tricked Kalija parks into signing an unadvantageous contract with the security company TM security. Based on these unadvantageous conditions, TM security is now claiming the Ventspils transit company’s insolvency. Kalija parks instead claims that it has evidence to prove that Kveps is in a conflict of interest, because he represents also TM security.
The whole story stems from April 2010, when Kalija parks slipped out of millionaire Oleg Stepanov’s hands and was taken over by the Swiss lawyer Rudolf Meroni. This was followed by attempts to keep the company with the help of TM security – just like in the case of AS Ventbunkers.
Kveps, who is linked with the interests of Stepanov, was then representing AS Kalija parks majority shareholders. He talked the company into signing a contract with the security company TM security. Kveps promised that the contract will be in force only for a single day – the one of the shareholders meeting. Actually, the contract remained in force and TM security employees stayed in the territory of Kalija parks despite the management’s objections. The contract developed by Kveps foresees that Kalija parks has to pay 25% of the total sum for each delayed daily payment. Similalry, Kalija parks is supposed to pay TM security a 100 000 lats compensation if the agreement is terminated.
The severe contractual conditions are not the only reasons why Kalija parks claims that the sworn attorney actually worked in the interests of the other party. “It is possible to conclude from SIA TM security’s words to AS Kalija parks that “Mr. Kveps will take care of everything”, as well as the severe conditions that Kveps acted in the interests of SIA TM security. Thus, not only did he ignore AS Kalija parks‘ interests, but also allowed the conflict of interest to enter his professional work,” it is said in AS Kalija parks‘ complaint to the Council of Sworn Advocates. What is meant here is TM security board member Markes Varnelis’ statement that “Mr. Kveps will take care of everything.”
“On April 29, 2010, Kveps was considered to be a sworn attorney working in the interests of AS Kalija parks, not providing legal assistance to SIA TM security. Only later it became known that Kveps had made ill use of trust in order to carry out other interests. He provided AS Kalija parks with misleading and false information, so that its board members would act without checking his words and in the interests of the third party represented by him,” it is said in the complaint that the CSA is about to review on December 6.
The complainants believe that Kveps’ “professional activities are violating the key principles of ethics. They dishonour not only him alone, but also cast the shadow of distrust to the profession of lawyer as such.” Therefore, the Kalija parks is asking the CSA to launch disciplinary action against Kveps on the grounds of “blunt violation of ethical norms in his professional work.” Kalija parks urges the CSA to dismiss Kveps from fulfilling the duties of a sworn attorney. According to the company, it is an appropriate punishment, because, given the attorney’s violations, he could be imposed the most severe punishment – exclusion from circles of sworn attorneys.
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