It has been headline time for Vlad the Impaler … Esteemed employee struck off the jam roll … Atanaskovic Hartnell even wanted to charge the client for tracking his stolen money … Then there was the Elizabeth Kelly case … The bully division … Fear of managing partner’s tendency to “denigrate” and hold “grudges” … Max Shanahan and Henry Chen report
Once of Ashurst and Goldman Sachs, Clarke’s precipitous downfall began as a “young hot shot” – in the words of Justice David (the Hammer) Hammerschlag – special counsel at Atanaskovic Hartnell.
Developing a close relationship with firm client Bruce Gordon (of WIN fame and fortune), Clarke impersonated Gordon’s son to Deutsche Bank to arrange a two-staged transfer of $7 million into his personal bank account to feed a debilitating gambling addiction.
The Deutsche Bank transaction was the largest and most brazen in a two-year stretch of defrauding Antagonistic Heartless clients.
Clarke was ultimately convicted of six counts of dishonestly obtaining an advantage and, in January 2019, was sentenced to a term of six years porridge. His non-parole period now expired, Clarke was summoned to the Supreme Court by the Law Society to have his legal career formally defenestrated.
There was a ritualistic element to the proceedings, which seemed designed as an opportunity for Clarke to receive another judicial bollicking.
Clarke consented to the orders sought by the Law Society – a declaration that he was not fit and proper, costs, and removal from the jam roll.
For John Basten, Robert Macfarlan, and Carolyn Simpson in a mere 12 paragraphs the exercise was ritualistic and obligatory – “notwithstanding that, the court however needs to satisfy itself that the it is appropriate to make [the orders].”
Clarke was “remorseful and wishes to redeem his reputation in the future,” but the court said that was “purely a matter of speculation”.
“The offences involved him taking advantage in a deliberate and calculated fashion of opportunities arising out of his employment as a solicitor and involved significant breaches of trust and serious dishonesty.
“His acts were antithetical to the central requirement for being a fit and proper person, namely honesty and integrity …
“Mr Clarke’s conduct was clearly dishonourable and disgraceful, and inimical to the reputation of the legal profession and to public confidence in its integrity.
“The offences of which Mr Clarke was convicted in our view leave no doubt that he is not a fit and proper person to be a lawyer and will continue to be unfit for the foreseeable future.”
Council of the Law Society of New South Wales v Clarke
It will also be remembered that John Atanaskovic, the Golden Serb himself, was caught in Brody’s rip.
The Serb sent a bill to Birketu Pty Ltd, Bruce Gordon’s holding company, for $150,000 – fees that Vlad was charging to track down the sums pilfered by his employee.
Atanaskovic Hartnell unsuccessfully appealed findings by The Hammer who said the firm was too conflicted to be able to help Gordon recoup the stolen loot.
Birketu and Gordon never gave informed consent to this conflict, which meant AH’s investigation was “infected” – quite apart from which the Atanaskovic had promised Bruce Gordon he would not charge for chasing Clarke’s plunder.
The Hammer’s findings were upheld by John Basten, Fabian Gleeson and Lucy McCallum.
On March 31, the FCFC revealed that Atanastovic Hartnell was home to a toxic workplace culture.
Elizabeth Kelly had been the shop’s general manager for 12 years, from 2004 to 2016. Judge Rolf Driver found that Atanaskovic, as managing partner, was a “bully” who treated her in an “abusive and belittling” fashion. She was awarded a total of $160,427.84
He repeatedly threatened to fire her and reduce her salary, referring to the “EMK disease” (in honour of Kelly’s initials) to reprimand underperforming employees, and referred to her “menstrual based cycles” in emails to other members of staff.
Two other partners at Atanaskovic Hartnell, Michael Sophocles and Tony Hartnell, chose not to raise Kelly’s complaints with Atanaskovic because they thought it would have only made matters worse.
One partner “had a practice of making a conscious decision to ignore rude and inappropriate comments” by Atanaskovic, for fear of the managing partner’s tendency to “denigrate” and hold “grudges” against anyone who challenged his authority.
Judge Driver awarded $30,000 in general damages to Kelly for hurt, humiliation and distress, on the basis that the law firm had breached an implied contractual obligation to prevent harm to its employees.
AH was also required to pay her accrued entitlements of $130,427.84, with the law firm’s cross claims being tossed out.