Solicitors fight laundering case

Two solicitors from Sunderland have hit back at accusations by Northumbria Police that they perverted the course of justice and laundered money.

John Lowe, a partner at Snowball Worthy & Lowe, and Paul Heron, partner at McKenzie Bell and a former president of Sunderland Law Society, have strenuously denied any impropriety over the payment of 31,000 into a joint account by a client of Mr Heron.

The sum was paid into the account on instruction of Mr Heron's client Kara Kennedy - accused of stealing at least 87,000 from a hotel that employed her in a case that has received widespread publicity - after she had reached an agreement with the hotel owner, represented by Mr Lowe, to repay some of the money.

The Northumbria Police arrested the two in August 2000 over the payment - Mr Heron was in a meeting with clients at the time - but subsequently released them and referred the matter to the Crown Prosecution Service (CPS) in York.

The CPS decided that no proceedings would be taken against Mr Lowe and Mr Heron for perverting the course of justice, but has now received a file from the police accusing the solicitors of money laundering.

Ms Kennedy has now admitted theft and is scheduled to be sentenced on 9 September.

Mr Heron said: 'To this day I don't know what we have done wrong apart from try to put a halt to a police enquiry that they saw as an opportunity to look good.

Agreements between claimants and the accused are perfectly usual and I merely acted on the instruction of my client.'

Mr Lowe said: 'It is utter nonsense - we're both denying wrongdoing because there has been none.

This is an example of how solicitors can be ill-treated if they're not careful.'

Simon Purchas, Mr Heron's solicitor and a partner at Leeds-based Harrison Bundy & Co, said: 'This is a deeply troubling and alarming case that I can't believe is still dragging on.

The police were notified of the payment over the phone and in writing, so everything was very open.'

A CPS spokeswoman said it was considering the file and thus could not comment on it, while a spokesman from the Office for the Supervision of Solicitors said: 'We are following events, and will get formally involved if charges are brought.'

Andrew Towler