The Law Society said on Thursday that it had shut down two law firms with alleged links to fraudulent transactions involving property worth more than HK$60 million.

The society said it began looking into Flora Lam & Co and Li & Associates in light of a police investigation announced in September.

The signatures of property vendors and borrowers were allegedly forged as part of the scam.

"The Council of the Law Society had reason to suspect dishonesty on the part of the sole proprietor of Firm Lam who allegedly signed off on the conveyancing documents as the witness to the allegedly forged signatures," said Amirali Nasir, a vice president of the society.

He added that the council also found reason to suspect dishonesty surrounding the role of a former employee of Li & Associates who allegedly acted as a witness to document signing.

"Taking into account the seriousness of the findings of the investigation of Firm Lam and Firm Li, the council had no alternative but to exercise its statutory powers to intervene into the practice of the two firms...for the protection of the clients of the two firms and the public," explained Nasir.

The society said it was assessing how many clients have been affected by its intervention.