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Lawyer denies $500,000 theft

from an alcoholic client who trusted him with his finances.Lawrence John Madeiros was given power to handle the affairs of Boyd Davis after Davis inherited an estate on the North Shore,

from an alcoholic client who trusted him with his finances.

Lawrence John Madeiros was given power to handle the affairs of Boyd Davis after Davis inherited an estate on the North Shore, Hamilton Parish that had been in his family about 150 years.

The Supreme Court heard that now, nine years after inheriting the 71 acre property, about all Davis had left was an orchard and a garage plot.

Instead of owning the family home handed down to him by his mother, he was now a tenant in it.

Madeiros, 64, of Harbour Road, Paget, denies stealing $506,000 from Davis between April, 1987 and November, 1989.

He also denies fraudulently disposing of property while acting as a trustee and attempting to convert the money to his own use.

Crown Counsel Ms Sharon Kenny, prosecuting, told the court that Davis inherited Sleepy Hollow estate in 1984 after his mother died. Apart from the main house, the "homestead'', it had two cottages.

Because of a battle with alcoholism, Davis decided to have someone else manage the property. He gave Madeiros full power of attorney in 1986.

She said that while Davis approved the subdivision and sale of a small section to pay off $300,000 in debts attached to the property, Madeiros eventually sold off most of the property without Davis' knowledge.

It was discovered that on Davis' behalf Madeiros had borrowed $500,000 from former Senator Mr. Arnott Jackson, who was paid back after the property was sold, Ms Kenny said.

Instead of getting several million dollars from the property sales, Davis found he was hundreds of thousands in debt, she said. He was forced to sell the main house.

Davis was advised by his ex-wife Mrs. Rosalie Davis and a friend, Mrs. Sheila Dickinson, to transfer the power of attorney to another lawyer.

Ms Kenny said the "bottom line' was that when he made the transfer, Davis had virtually no property and only $12,000.

"He now pays rent to live in the house that used to be his.'' Documents will show Madeiros took at least $500,000 in "legal fees'', said Ms Kenny.

Madeiros told Police these sums were gifts from Davis in appreciation of his services, the court heard.

But, said Ms Kenny, money from property sales had gone into Madeiros' pocket and was used to pay off loans, credit cards and bills.

Davis often mumbled and sometimes appeared confused while giving evidence. He admitted to the eight-woman, four-man jury that he had been an alcoholic for about 18 or 20 years.

Asked by Ms Kenny if he was now a "dry'' alcoholic, he replied: "Most definitely, yes''.

He stopped drinking 15 weeks ago to the day, he said. Davis said when he had been drinking he had not had a problem with forgetting things. He was positive he had not promised Madeiros any property. He said Madeiros convinced him to sign over power of attorney because Davis was often travelling. Davis was given $2,000 pocket money a month.

He "never really got a clear answer'' from Madeiros about how much was made from the sale of lots.

"He told me not to worry, and that everything was all right.'' Questioned by Mr. Richard Hector, for Madeiros, Davis agreed he had discussed plans for the property with consultant Mr. David Summers, but added: "Every move that was made, I feel Mr. Madeiros was behind it.'' LAWRENCE MADEIROS -- on his way to Supreme Court yesterday.