Solicitor who transferred £175k from clients’ funds loses appeal to escape sanctions

Former solicitor failed to overturn ruling after transferring £175k in client funds without authorisation

A former solicitor has lost his appeal against sanctions imposed after he transferred £175,000 from client accounts without permission—an act the legal regulator deemed a serious breach of trust.

The individual, whose name was withheld for legal reasons, had challenged the findings of a disciplinary tribunal that ruled his conduct had fallen significantly below the standards expected of a solicitor. The case centred on unauthorised movements of client funds totalling £175,000, spread across several transactions.

The Solicitors Disciplinary Tribunal (SDT) had earlier found that the former solicitor’s actions lacked transparency, proper documentation, and appropriate client consent. The tribunal ruled that he had breached core principles of the Solicitors Regulation Authority (SRA) code of conduct, including integrity, acting in clients’ best interests, and preserving trust in the legal profession.

During the appeal, the former solicitor argued that the transfers had been made in good faith and were later reconciled, with no lasting loss to the affected parties. He maintained that the transactions were part of internal firm movements, albeit poorly executed, and that the disciplinary consequences were disproportionate.

However, the appellate court was not persuaded. In a written judgment, the court affirmed the original findings, stating that “the absence of immediate client harm does not negate the seriousness of mishandling client money.” It added that the solicitor’s behaviour “undermined the public’s confidence in the profession” and showed a “disregard for basic regulatory safeguards.”

The appeal was dismissed in full, and the court upheld the sanctions, including the striking off from the roll of solicitors. The former solicitor was also ordered to pay additional legal costs associated with the appeal, bringing his financial burden to over £10,000.

According to the original tribunal decision, the misconduct occurred over a period spanning more than 12 months, during which the former solicitor was responsible for client accounts at a mid-sized regional law firm. The firm reported the anomalies after internal reviews identified missing documentation and unexplained transfers.

The SRA launched an investigation shortly after and referred the case to the SDT. During proceedings, the tribunal was told that while the funds were eventually restored, the methods used and the lack of transparency amounted to professional misconduct of a serious order.

The SDT concluded that the only proportionate outcome was to strike the solicitor from the roll to protect the public and preserve the integrity of the profession. In its ruling, it stated: “Clients must be able to place absolute trust in the safekeeping of their funds. Any departure from that standard, especially on this scale, cannot go unpunished.”

The case has been cited by legal ethics experts as a clear reminder of the non-negotiable duties solicitors owe to their clients, particularly around financial conduct. Mishandling client money—whether or not restitution occurs—is seen as one of the most severe breaches of professional duty.

Despite the appeal’s failure, the former solicitor has expressed disappointment with the outcome, claiming he was made a “scapegoat” for procedural flaws within his former firm. He has not indicated whether he will seek further legal remedies.

The SRA welcomed the appeal court’s decision, stating it reinforces the message that solicitors must be held to the highest standards when dealing with client assets.