Court of Appeal: 'reduced onus on solicitors' as recent cases raise required knowledge

Three solicitors who were the subject of a 25-month money laundering investigation told of their 'horrendous ordeal' this week, as charges against them were dropped on the basis that recent Court of Appeal decisions have led to a 'reduced onus on solicitors'.


The Crown Prosecution Service (CPS) decided to offer no evidence against two Burnley solicitors, Basil Dearing, consultant at SFN solicitors, and John Greenwood, partner at JGT solicitors, and sole practitioner John Broughton in Keighley. They were given a not-guilty verdict at a pre-trial hearing this week. The three solicitors had been charged with money laundering in relation to conveyancing.


Mr Dearing, whose home was raided by 14 police officers during the investigation, said: 'I am delighted that common sense has prevailed and, after 25 months of anguish, I and my family can put behind us this most horrendous ordeal... The publicity was horrendous and the damage to my reputation incalculable... The relief that I feel today cannot be described.'


Mr Dearing's solicitor Paul Schofield said justice and common sense had now prevailed.


A statement issued by Mr Broughton's Keighley-based solicitor John Holden said: 'Everyone who knows John Broughton believed him to be innocent. The prosecution never had a witness to prove their allegations. John Broughton has had to suffer over two years of worry, distress and expense as a result of this time-wasting prosecution.'


Anthony Barnfather, partner at Pannone & Partners in Manchester who represented Mr Greenwood, said: 'The case against John Greenwood centred around his involvement with conveyancing transactions a number of years ago. It was alleged that, when conducting the transactions, he should have suspected that something was untoward.


'He always denied the allegation but at the same time, co-operated with the police enquiry and gave full explanations for his conduct.


'Although shocked that he was charged in the first place, he obviously welcomes the CPS decision to withdraw all allegations at this early stage of the proceedings.'


Acting Chief Crown Prosecutor Ian Rushton, who was also speaking on behalf of the National Crime Squad, said: 'We have offered no evidence against the solicitors. This step follows careful consideration of the case by senior representatives of the service in conjunction with senior National Crime Squad officers.


'There have been four very important decisions in respect of money laundering in the Court of Appeal, which have in effect changed the law. When we reviewed the cases in light of these, we decided it was right that they should not continue.


'The decisions have redefined the law in many respects, and reduced the onus on solicitors. This has been distressing for the solicitors but hopefully they will be relieved.'


Mr Rushton said recent case law had raised the level of knowledge a solicitor must have in order to be convicted of a money laundering offences. He added that a case is still continuing against six individuals who are not solicitors.