The Solicitors Regulation Authority has formally confirmed it is investigating “potential fraud, including the misappropriation of client money” at the Sheffield-based law firm PM Law after it unexpectedly closed on Monday 2nd February.
In a statement published on the SRA website, Jonathan Peddie, executive director of legal and enforcement, confirmed the regulator is looking into the possibility of fraud being the reason for the closure of the firm and its subsidiaries. He added:
“We recognise that there is a strong public interest in this case, given the significant impact on clients. Alongside doing everything we can to protect and support clients, we are moving as quickly as we can with our investigation. It is a complex picture, and we are still establishing the core facts.
“We are focused on establishing what occurred, how it happened, and who was responsible. We will take appropriate action to protect the public, including enforcement action against anyone who has been involved in misconduct.
“We have also shared information with the appropriate law enforcement agencies.”
The announcement confirms what has been widely speculated on social media. Several outlets, including a Facebook group set up to support victims of the fallout from the closure of the firm, have named a director of PM Law as being involved in perpetrating a fraud against the firm.
PM Law and its subsidiaries closed overnight on Monday 2nd February, when notices appeared on offices doors advising clients and staff the firm had closed “due to regulatory matters.”
The regulator confirmed it would intervene in the matter on Wednesday 4th February, with Gordons LLP appointed as intervening agents, but said at the time it could not comment any further.
In the intervening period, despite calls for transparency and clarity for fellow professionals and clients, there has been limited information supplied by the SRA. The situation has left many on social media attempting to fill the gaps, resulting in widespread speculation including a detailed blog post naming the director and sharing what its author claims to be the circumstances surrounding the firm’s closure.
The Law Society of England and Wales said it welcomes the SRA’s statement, which brings “greater openness and transparency”.
Ian Jeffery, chief executive officer of the Law Society said:
“The SRA’s latest update shows the seriousness of the situation facing clients.
“The SRA must move quickly with its investigation to give consumers and the profession confidence that swift action is being taken. We are encouraged that the SRA in this case is at least acting with greater openness and transparency
“It is important that the SRA applies the lessons it learned from the Axiom Ince and SSB Group cases, in understanding and managing key risks effectively, as well as ensuring that clients are not left in legal limbo and out of pocket.
“We are continuing to monitor developments and are in regular contact with the SRA. Support is available from us and others to staff members affected by these events.”
Those with ongoing matters with PM Law and its affiliates are advised to access further information and support on a dedicated part of Gordon LLP’s website. The SRA has also provided initial guidance for those impacted.
One Response
As an early reporter of misappropriation of funds to the SRA, SFO and the Law Society all of whom suggested I take independent legal advice, I have been led down the garden path or yellow brick road,
Your profession need to back a revision of action when clients report funds are misappropriated as if the current action had taken place in 2022 when I reported the loss of funds, many other clients would be protected but it is now obvious that the deception myself ,the SRA and many others have been forced to accept brings down the propaganda supported by legal firms, institutions and Governments “the Rule of Law” to another political slogan of dishonesty