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This all seems like a shambles to me.
As others have said, it's one thing charging a very high rate (which your client has agreed contractually to pay) - it's a buyer's market apparently - and another to charge for work not carried out. Solicitors charging too high a rate will always get hammered on any costs assessment or negotiation with insurers' costs' teams. "Testing the water" by charging excessive hourly rates simply brings you to the attention of Defendants and insurers and costs will then never be an easy ride.
I can't see that it is alleged that the work was not actually carried out as if so (as we've seen in other cases) that deserves a strike-off for dishonesty but charging too high an hourly is a different kettle of fish. It seems that unless you charge out at guideline rates you're now at risk of the SRA knocking on your door!

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