The Solicitors Regulation Authority (SRA) has today announced that it is investigating potential fraud and misappropriation of client money following the sudden and unexpected closure of Butterworths and PM Law Ltd on the 2nd February.
The SRA launched an investigation into PM Law, and connected individuals, and intervened into the firm on 4 February after the sudden unexpected closure of the company that included Butterworths in Penrith and other locations across Cumbria.
The SRA intervention agent, Gordons LLP, has taken possession of all files and money (including client funds) held by the firm. With the SRA providing information and support to clients who are impacted As agents work through tens of thousands of files to identify and contact everyone impacted.
Jonathan Peddie, Executive Director of Legal and Enforcement, said: 'We are investigating a potential fraud, including the misappropriation of client money.
'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 live nature of the investigation means that we will not provide further comment on this case at this stage.
Protecting clients' interests
We appreciate that PM Law's sudden closure is a cause of concern for their clients.
If clients are unable to access their funds held with PM Law, then they can make an application to the SRA compensation fund to recover the missing money.
We are prioritising applications to the fund where there is the most urgent need. We have already made several emergency grants to allow clients to move house when they had already exchanged contracts. And we have received more than 80 applications to our compensation fund already, which we have begun processing.
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