The solicitors’ regulator has imposed the biggest fine ever issued against any firm or individual working in the profession.
Nurul Miah, manager of the defunct consolidator firm Kingly Solicitors, must pay almost £4m and £41,670 in costs after overseeing hundreds of payments out of client accounts.
Solicitors Regulation Authority investigators found evidence of 310 improper transfers to companies linked to Miah that were used for loan repayments and to buy assets unrelated to the business. The regulator also discovered forged statements attempting to conceal these unauthorised transactions.
These findings and the supporting evidence have been passed on to law enforcement authorities.
The level of fine far outstrips anything ever issued by the SRA or the Solicitors Disciplinary Tribunal. The previous record was £500,000, given on separate occasions by the tribunal to Clyde & Co for anti-money laundering process failures and Locke Lord, for failing to stop a partner involving clients in a dubious investment scheme. The SRA is able to issue unlimited fines where misconduct involves an alternative business structure.
Paul Philip, SRA chief executive, said: 'Mr Miah’s dishonesty impacted thousands of people. We stepped in to safeguard their interests – closing the firm, securing files and returning money to clients.’
Kingly Solicitors, originally operating as RH Legal (Bristol) Ltd, was shut down by the SRA in 2020 following concerns about the misuse of client funds.
Despite the return of some funds, a shortfall of around £10m remained. The SRA intervention secured £22.5m in client money, with those who lost money claiming through the compensation fund. The SRA collected and secured 220,000 files from the various offices, including more than 90,000 wills and deeds.
Lalou Tifrit, a consultant assisting Miah, was disqualified from working in a law firm without SRA permission and ordered to pay £28,230 costs. Colin Buckingham, who worked at the firm, was disqualified from working as a firm’s head of finance and administration without permission and ordered to pay £1,350 costs.
Solicitor Simon Hutcheson was fined £26,766 and must pay £1,350 in costs.
Kingly ended up with 16 offices after buying small practices across the country. Unsecured creditors lost around £16.5m from its closure. Most of the firms acquired continued to trade under their existing names: they included Giffen Couch & Archer Solicitors in Bedfordshire, Milton Keynes firm Austin Ray, London practice Hughmans Solicitors and north east firm Coles Solicitors.
All fines levied by the SRA and SDT are paid to the Treasury. The likelihood of payment is not a factor the SRA takes into consideration when setting fine levels, operating on the basis that deterrence is an important factor. The regulator will take steps to seek to recover the monies owed.
