Solicitors' regulator investigating 'potential fraud' after collapse of law group

‘Potential fraud’ is being investigated by a solicitors’ regulator following the collapse of a law group and the closure of its associated brands in Maidenhead and across the country.

Earlier this month, the Solicitors Regulation Authority (SRA) was alerted to the sudden, unexpected closure of a group of law firms under the umbrella of Sheffield business PM Law Ltd, which included Maidenhead-based Proddow Mackay (Conveyancing) Limited.

Since launching an ‘immediate investigation’ into PM Law on Monday, February 2, the SRA has taken a decision to intervene and has appointed Gordons LLP as its intervention agent.

The regulator has taken possession of all files and money (including client’s funds) held by the group and has identified ‘tens of thousands of lives cases’ on its case management systems.

In a latest development, the SRA revealed it is investigating ‘potential fraud, including the misappropriation of client money’ at PM Law, but did not specify which parts of the group were affected by the investigation.

Johnathan Peddie, executive director of legal and enforcement, said: “We are investigating a potential fraud, including the misappropriation of client money.

“We recognise that there is a strong public interest in this case, given the

significant impact on clients.

“Alongside doing everything we can to protect and support clients, we are moving as quickly as we can with our investigation.

“It is a complex picture, and we are still establishing the core facts.

“We are focused on establishing what occurred, how it happened, and who was responsible.

“We will take appropriate action to protect the public, including enforcement action against anyone who has been involved in misconduct.

“We have also shared information with the appropriate law enforcement agencies.”

Due to the live nature of the investigation, the SRA said it will ‘not provide further comment on this case at this stage’.

As part of its intervention, the SRA has attended 24 offices belonging to PM Law, including in Berkshire, and contacted clients in relation to more than 100 urgent matters, mainly relating to litigation and conveyancing cases.

One of the clients affected by the sudden closure of Proddow and Mackay (Conveyancing Ltd) are husband and wife Robert and Kim Groves, who spoke to the Advertiser earlier this month.

They used the firm to sell their house in Maidenhead last year and were in the process of buying a new property in Binfield.

However, they were left ‘flabbergasted’ when they attended the Grove Road practice to find a notice on the door saying ‘CLOSED’ when they arrived to sign some forms earlier this month.

The SRA has also notified more than 100 courts across the country about the closure and the impact it could have on ‘potentially urgent litigation matters’.

The regulator said it appreciates that PM Law’s sudden closure ‘is a cause of concern for their clients’.

Clients who are unable to access their funds held with PM Law can apply to the SRA’s compensation fund to recover the money.

The SRA said it is prioritising applications ‘where there is most urgent need’ and have already made ‘several emergency grants’ to enable clients to move house when they had already exchanged contracts.

Speaking to the Advertiser earlier this week, Mr Groves said he had not yet been contacted by the SRA but another firm was now dealing with his house purchase.

The SRA has already received more than 80 applications to its compensation fund, which it has started processing. For more, visit: sra.org.uk/pm-law

Proddow Mackay (Conveyancing) Ltd and PM Law have been contacted for comment.