In the years 2013–2023, the late lawyer Per Asle Ousdal brought in close to a billion kroner from lenders who were presented with sky-high interest on the money, as high as 15 percent. Of this, NOK 727 million went into the client account of Bull Årstad Advokatfirma DA, where Ousdal was a partner in the same period. The lending scandal Per Asle Ousdal, former partner in the law firm Bull Årstad DA in Stavanger, is said to have raised loan capital from investors over several decades. These were offered interest rates of 10–15 per cent, without risk. The lawyer enjoyed a high degree of trust in the local business community, and he was a sought-after board member in various businesses. He informed the lenders that the law firm guaranteed the paid-in funds through so-called declarations of suretyship, but the guarantees turned out to be false. The lawyer left Bull Årstad on 31 December last year. The company reported him to the police on 31 May, and he took his own life three days later. The family has chosen to be open about this. The lenders who have lost money are both companies and private individuals in Rogaland, mostly south of Stavanger: In Sandnes, Ålgård and in the municipalities of Klepp, Time and Hå. The case broke in the media late in the evening on Wednesday 12 June. Then Sandnesposten reported that there had been a claim for at least half a billion kroner in the estate of a recently deceased lawyer from Sandnes. Dagens Næringsliv published a longer article about the entire case complex shortly afterwards. Økokrim announced on 18 June that they would start an investigation. The Sør-West police district is also involved in this. On 21 June, the Finanstilsynet also announced that they had started follow-up of certain companies in the case. This applies, among other things, to certain banks, as well as accounting agencies and audit firms. news has been made aware of an overview which shows that the 727 million kroner from the lenders accounted for more than half of the total amounts that went into the law firm’s client account in the same period. Quick in, quick out What distinguished the payments from Ousdal’s lenders were the many round amounts that were paid into the client account. news is also aware that every payment from a lender to the client account very often resulted in a payment to another person shortly afterwards. On Monday, it became public that Per Asle Ousdal also paid out a total of NOK 690 million to lenders during this ten-year period. This mainly consisted of interest on invested capital, but in some cases repayment of all or part of the loans. This means that not all lenders have lost money on Ousdal, some may also have profited from his fictitious lending business – most likely those who joined the fraud carousel first. By using payments from investors who came in late to feed the earliest investors with money, Ousdal was able to leave the impression that the lending business was serious and real. The company refers to a duty of confidentiality. This was supported by loan documents with the logo of the well-reputed law firm, documents which it later turned out that Ousdal had falsified. But at some point late this spring, the bubble burst. The question is whether the other partners in the company should have reacted to all the payments that took place under the auspices of Ousdal as long as these made up such a significant proportion of the total movements on the client account? – Our partners mainly work alone with their assignments. All transactions carried out on our client account relate to assignments between the individual lawyer and the client. Transactions on client accounts are included in the lawyer’s duty of confidentiality. This also applies between the partners/lawyers internally. The duty of confidentiality can only be lifted by the client for whom the lawyer has completed the transaction, says Lars Kåre Pedersen, general manager of Bull Årstad Advokatfirma DA. Lars Kåre Pedersen, general manager at Bull Årstad Advokatfirma DA. Photo: Bull Årstad Advokatfirma DA In connection with the claims the company has received, he says that they are in dialogue with the claimants’ lawyers about an exemption from confidentiality for Ousdal’s customers. – This is so that we, and Erling Grimstad on our behalf, can have insight into the transactions and carry out the necessary investigations in this case, says Pedersen. – As of today, not all conditions surrounding exemption from confidentiality have been clarified. Bull Årstad is therefore precluded from commenting on further information about transactions on client accounts that have been carried out by Ousdal, he adds. The supervisory board did not react in 2021 – Have the company’s auditors ever questioned the fact that such a high proportion of the payments to the client account came exclusively from the one partner’s (Ousdal) contacts? – The same auditor has audited Bull Årstad throughout the period indicated, and has submitted a clean audit report every single year. This means that the auditor has not reacted to the transactions in and out of the client account, explains Lars Kåre Pedersen. He says that the Supervisory Board for Legal Practice has supervised Bull Årstad Advokatselskap in 2018 and 2021, where client asset management has been part of the supervision. – Despite the duty of confidentiality, the Supervisory Board has the right to access. The feedback has been that the client asset management has been sound, says Pedersen. Following the inspection in 2021, the company received a letter from the supervisory board. Here it said, among other things: “Based on what appears in EY’s report of 30 August 2021, the Supervisory Board’s board assumes that the lawyers’ bookkeeping, handling of client funds and follow-up of the tax and fee regulations have been sound during the period covered by the supervisory visit.” The deadline for claims expires on Wednesday So far claims in the bankruptcy estate of more than NOK 700 million have been reported. The deadline for reporting claims expires on Wednesday this week. Property manager Flemming Karlsen tells news that he will only get a full overview of the overall requirements a little towards the end of August. Executor Flemming Karlsen. Photo: Ole Andreas Bø / news – Ousdal has paid out significant amounts to some investors. Is this something you, as a property manager, are concerned about? – The estate is naturally concerned with the cash flow, and the work to map it is still ongoing, says Karlsen. There are few values in the deceased lawyer’s estate, compared to the high demands from the creditors. After the summer, the estate board will continue the work of realizing the values of the sale of properties, cars, works of art and other assets. The total value of this is probably several tens of millions of kroner. Published 30.07.2024, at 14.29
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More than half the client account consisted of fictitious loans – news Rogaland – Local news, TV and radio
