The Solicitors Disciplinary Tribunal yesterday ordered Richard Barnett, formerly senior partner at Southport firm Barnetts, to be struck off the roll.
Barnett, a Law Society Council member, had denied 10 allegations by the Solicitors Regulation Authority involving a conflict of interest and misuse of funds.
A three-week hearing heard that Barnett had spent litigation funding from the now-collapsed Axiom Legal Financing Fund on the running of the firm.
A second senior partner, Anthony Swift, was ordered to be suspended for six months with conditions attached to his practising certificate.
The tribunal said the full judgment, which may be subject to appeal, would be published later this summer.
The tribunal awarded costs against Barnett.
A Law Society spokesperson said: 'We will be running a by-election for a council seat in Merseyside and District.'