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Emily Woods

Ex-top silk 'shunned' over attempted class action fraud

Ex-barrister Norman O'Bryan inflated his fees and invoiced for hours not worked, prosecutors said. (Jay Kogler/AAP PHOTOS)

A top barrister’s fall from grace has been outlined in court after he attempted to commit fraud while representing a class action.

Elderly victims of Norman O'Bryan have recounted how he put them through "seven years of hell", including overcharging for his legal fees.

The former senior counsel, who is from one of Victoria's most respected legal families, faced the County Court in Melbourne on Thursday, after pleading guilty to one count of attempting to obtain financial advantage by deception.

The 68-year-old falsely inflated his legal fees to members of the Banksia Securities class action and used false invoices to claim billable hours he did not work, prosecutors said.

Woman in Banksia office (file)
Banksia Securities collapsed owing about $663 million to more than 16,000 debenture holders. (Julian Smith/AAP PHOTOS)

O'Bryan was struck off as a barrister in 2021, declared bankruptcy and returned his Order of Australia medal.

His barrister Neil Clelland KC said O'Bryan had been "shunned" and ostracised by the legal profession over the offending.

"He's lost just about everything he had to lose," he said, as he outlined the professional, personal and financial consequences O'Bryan has since faced.

The charge carries a maximum sentence of five years' prison, but Mr Clelland asked for O'Bryan to be handed a community work order.

"Mr O'Bryan has already been severely punished," he said.

"There is no doubt that his conduct was serious and we make this concession."

Banksia Securities collapsed in October 2012, owing about $663 million to more than 16,000 debenture holders, many of whom were elderly and lost their retirement funds.

A judge approved a $64 million settlement for class action members, and about $20 million in fees and commissions for lawyers, including O'Bryan.

Prosecutor Michael Stanton SC said O'Bryan's offending was uncovered after Wendy Botsman, a retired nurse and debenture holder, appealed against the Supreme Court settlement as the legal fees attached were excessive.

Prosecutor Michael Stanton
Michael Stanton SC said the offending had brought the legal profession into disrepute. (Jay Kogler/AAP PHOTOS)

O'Bryan and another lawyer, who has since died, attempted to dissuade Ms Botsman from pursuing her appeal by threatening her with further costs, Mr Stanton said.

Ms Botsman told the court she became scared she would lose her home after being served with the letter.

"The feeling I had when I finished reading that letter is one I will never forget," she said in a statement.

"I was stressed, intimidated and extremely anxious. 

"As a divorcee, living alone on a fixed income, my home is not just an asset, it is my security. The prospect of losing it was devastating."

Her appeal was upheld and the matter was remitted to the Supreme Court where a judge found against O'Bryan in 2021.

Justice John Dixon ordered more than $20 million be recovered and O'Bryan, who declared himself bankrupt during those proceedings, sold his house to pay back $1.25 million.

Police began investigating him in 2022 and found O'Bryan had been billing the class action members at the same time as being overseas or representing other clients in court, including the ACCC.

Another debenture holder Keith Pitman, aged 90, said the attempted fraud felt like "slow motion robbery".

"It has been seven years of hell," he said in a statement.

"I don't understand how a lawyer of such high standing, who was Queen's Counsel, could think that he might get away with such deception."

Mr Stanton said O'Bryan's offending had brought the legal profession into disrepute.

Barrister wearing a wig
Norman O'Bryan's father and grandfather were judges, one brother is a judge and another is a silk. (Dean Lewins/AAP PHOTOS)

"It risked eroding confidence in the public administration of justice," he said.

But he accepted O'Bryan's remorse, good rehabilitation prospects, that he no longer practised law, and "undue" delays to the matter warranted him not serving prison time.

He called for a lengthy community corrections order, with conviction, and long community work hours attached.

O'Bryan's father and grandfather - both also named Norman O'Bryan - spent decades as Supreme Court judges during the 20th century.

His brother Michael O'Bryan was made a Federal Court judge in 2019 and another brother Stephen became a silk in 2003.

O'Bryan will return to the court on May 14 for sentence.

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