Thomas Lowndes was forced to resign as senior partner of Kidsons Impey's Chester office on 19 May when he informed the firm that he had been bankrupted by the Inland Revenue.
The firm said: 'Mr Lowndes was declared bankrupt on Monday, 16 May, as a result of personal circumstances of which Kidsons Impey were unaware.
'On 23 May Mr Lowndes advised Kidsons Impey of certain irregularities involving an apparent misappropriation of funds. Kidsons Impey immediately instigated an investigation. The police have also been informed.'
The Inland Revenue presented the bankruptcy petition against Mr Lowndes in July 1993. According to Kidsons, when Mr Lowndes told the firm about his bankruptcy on 19 May 1994 he said he had no previous knowledge of the bankruptcy proceedings against him.
The firm could give no further comment, but Chester police confirmed that they were conducting an investigation.
When Mr Lowndes resigned, Kidsons released a statement saying that the bankruptcy 'is in no way connected with Kidsons Impey or a reflection of the firm's financial position'.Reuse content