A former solicitor-judge who diverted client funds into his own account for more than 15 years has been jailed for four years. Sean Callaghan, from Rayleigh in Essex, pleaded guilty to 17 charges of fraud and two charges of theft after taking an estimated £350,000 from clients.
Essex Police said Callaghan, now 64, had repeatedly edited payment details to transfer money into accounts he controlled, inflated client fees and falsified invoices. He spent the money on home renovations, buying a classic car and replacement parts, and purchasing property abroad.
Callaghan, who sat as a deputy district judge, practised at BMTK Solicitors before joining another Essex firm, Palmers, in 2019. Both firms carried out investigations and began civil recovery proceedings.
More than a dozen individuals and businesses were defrauded by Callaghan or used by him to move and conceal payments made into his accounts. In one case from 2008, he altered the sums that beneficiaries were supposed to receive from a deceased woman’s estate, paying more than £20,000 into his own business.
He was jailed at Southwark Crown Court earlier this month. Callaghan was struck off the roll of solicitors in 2022 after admitting dishonestly misappropriating funds from client accounts.
Speaking after the sentencing, detective Thomas Blackmore said: ‘Callaghan was in a position of trust over his clients, yet he operated a complex web of deception to exploit their funds. He did this over and over, with total disregard for those he was stealing from, in one case even a family’s inheritance. Callaghan utilised multiple business accounts for the fraud and on some occasions had client funds sent directly to contractors he was employing for the maintenance and renovation of his properties.’
A spokesperson for BTMK said the firm had co-operated extensively with the Solicitors Regulation Authority and the police, adding: ‘When we were made aware of concerns, we took immediate action and we have set aside funds which we have identified should be reimbursed to affected clients and we are working at pace to locate those clients and complete their full reimbursement.
‘These clients comprise only a very small number of the firm’s clients overall, and a very small proportion of the firm’s business.’
A spokesperson for Palmers said Callaghan had come to the firm with a reputation as a trusted adviser after what appeared to be a lengthy and distinguished career. The firm’s internal system had flagged up there was an issue with funds being handled by Callaghan and he had been dismissed immediately, with the police and his former firm informed.
They added: ‘It is good to know that the process has reached a conclusion and the fact that he has now received a custodial sentence for his repeated thefts, frauds and abuse of position is of some comfort. We are grateful to our diligent, honest and proactive staff who were instrumental in the discovery of wrong-doing and which ultimately led to this result.’
