Tribunal exposes shocking estate overcharging, reckless loans, and client account losses
The Solicitors Disciplinary Tribunal has struck off solicitor Petros Petrou and suspended his brother Stylianos Petrou after uncovering serious misconduct that left estates overcharged by hundreds of thousands of pounds and client accounts in turmoil.
The case, heard on 29 September 2020, revealed a damning catalogue of failures at the Petrou Law Partnership. At its centre was First Respondent Petros Petrou, admitted to the Roll in 1990, who the tribunal found had overcharged estates, borrowed from estate funds, and misused money belonging to other clients.
Between May 2016 and December 2017, Petros Petrou caused or allowed the firm to overcharge the estate of a deceased client, JW, by up to £237,999.23. He then failed to disclose these charges to the sole beneficiary, Mr C, while issuing a misleading completion statement that falsely suggested the beneficiary owed money to the firm.
The tribunal also found that in November 2016, Petros arranged a £100,000 loan taken from estate funds without independent legal advice for Mr C or any formal written agreement. When money ran short to pay Mr C, Petros instead raided funds from other clients’ accounts, transferring a total of £230,000 between August 2018 and February 2019.
Embed from Getty ImagesAnother estate, that of GL, suffered similar treatment. Between August 2018 and January 2019, the firm raised bills totalling up to £175,923.14, far exceeding agreed fees, and transferred nearly £156,638 to office accounts without informing the executors.
By January 2019, the Petrou Law Partnership’s client account was facing a cash shortage of up to £489,649.57, the result of overcharging, unauthorised payments, and misapplied funds.
The tribunal ruled that Petros Petrou’s actions amounted to reckless misconduct. Although he had replaced the shortages and cooperated with the Solicitors Regulation Authority (SRA), his behaviour was described as extremely serious and fully culpable. The tribunal concluded that only striking him off the Roll could protect the public and preserve the profession’s reputation.
Petros also gave an undertaking never to apply for readmission as a solicitor. He was ordered to pay £20,000 in costs.
His brother and fellow partner, Stylianos Petrou, admitted failings as the compliance officer for legal practice. While several allegations against him were withdrawn, he was held responsible for allowing the client account shortage to persist and failing to prevent his partner’s exploitation of estates.
The tribunal noted that Stylianos had already been fined £50,000 in 2019 for unrelated misconduct involving interim client payments. His repeated inattention to accounts, the tribunal said, enabled Petros’s behaviour to go unchecked and damaged trust in the legal profession.
Although Stylianos had ensured the shortfall was replaced and admitted his failings, the tribunal deemed his misconduct too serious for a reprimand or fine. He was instead suspended for 12 months from 29 September 2020 and placed under indefinite practice restrictions once the suspension ends. These include bans on handling client money, managing law firms, or holding compliance officer roles.
Stylianos must inform any prospective employer of these restrictions and may only apply to the tribunal to have them lifted in future. He too was ordered to pay £20,000 in costs.
In its decision, the tribunal stressed that both solicitors had caused significant harm not only to their clients but also to the wider reputation of the legal profession.