A five-day hearing involving a former City lawyer charged with a host of allegations has begun at the Solicitors Disciplinary Tribunal.

Kirsten Von Wedel, owner of defunct Berkshire firm K Law, is alleged to have failed to comply with an undertaking to redeem a mortgage on a property sale within the proper timeframe.

She is also charged with failing to pay stamp duty land tax on time and failing to register her client’s interest in another matter. She denies the charges. 

It emerged at the opening of the hearing today that Von Wedel, admitted in 2000, is also alleged to have engaged in offensive and threatening communication.

The Solicitors Regulation Authority further alleges that she made at least one improper transfer to the firm’s client account, and caused the transfer of funds purporting to be for legal costs she was not entitled to. This created a client account shortage of around £182,000.

All allegations, including charges of dishonesty and recklessness, remain unproven. Von Wedel told the SRA that she had attempted to redeem the mortgage but had failed.

Von Wedel was the sole proprietor of the Ascot-based K Law, which described itself as a private client firm for ultra high net international and regional clients, until it was shut down by the SRA in 2020. She had previously worked for a number of City firms.

The SDT heard that the regulator began investigating after receiving complaints in relation to conveyancing matters. An interim forensic investigation found a minimum shortage of £177,000 in the client account, an absence of accounting records and evidence that the firm used a foreign bank account to hold client money. The mortgage was finally redeemed three months after completion. Von Wedel said the payment had been made from a foreign account so her ex-husband would not be able to see her financial activity, but this payment had got ‘lost in the system’.

With regards to the non-payment of charges in the second matter, the tribunal heard that around £135,000 in SDLT, Land Registry fees and other costs was still outstanding a year after the sale completed. The clients claimed this back from the SRA's compensation fund but still had to find £7,000 to cover penalties for late payment. Von Wedel said the delay in repayment was down to issues during the lockdown with illness and providing home schooling. She claimed to have told the clients that the funds were being held in what she called an 'SDLT vehicle', but they denied this ever happened.

The tribunal heard that Von Wedel send four emails to a client who had complained about her which were now subject to disciplinary action.

One of these had called the client 'scummy' and 'baggy' and appeared to threaten the recipient with legal action. Another was sent at 1am, despite the client asking Von Wedel not to send messages at unsocial hours, telling him that her pursuit of him 'has only just begun' and later using the word 'spastic'.

The hearing continues.

Topics