Former solicitor jailed for four years after stealing £350,000 from clients over 17 years
A disgraced solicitor who stole hundreds of thousands of pounds from clients over almost two decades has been jailed for four years.
Sean Callaghan, 64, diverted more than £350,000 from client accounts while working at two Essex law firms — BTMK and Palmers — between 2003 and 2020. Police investigators said he used the stolen funds to pay for home renovations, purchase overseas property and acquire a classic car.
According to Essex Police, Callaghan repeatedly manipulated financial records and payment instructions to conceal his thefts. He inflated client fees, falsified invoices, and redirected funds into accounts under his control.
In one example dating back to 2008, while administering the estate of a deceased woman, he underreported the amount owed to beneficiaries and transferred more than £20,000 from her estate into one of his business accounts — just days after paying the family what they believed was the full amount.
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The fraud continued for years. Callaghan joined Palmers Solicitors in 2019, where his deceit began to unravel after colleagues identified irregularities in billing and payment records. Staff discovered falsified invoices, prompting an internal review and immediate contact with police and the Solicitors Regulation Authority (SRA).
A joint investigation by Essex Police and the SRA uncovered 17 separate counts of fraud and two of theft involving more than a dozen victims. The total loss was estimated at £396,228.77.
Callaghan, of Rayleigh, Essex, pleaded guilty at Southwark Crown Court on 5 July to the full range of charges. He was sentenced at the same court on 3 October to four years’ imprisonment.
He had previously been struck off the roll of solicitors in June 2022 after admitting to dishonestly misappropriating client funds.
A spokesperson for BTMK said the firm acted swiftly once suspicions arose. “We took immediate action as soon as concerns were raised and have set aside funds to reimburse affected clients,” the firm said. “We have co-operated fully with both the Solicitors Regulation Authority and Essex Police throughout the investigation.”
Palmers Solicitors, where Callaghan worked shortly before his arrest, said he joined “cloaked in the reputation of being a trusted adviser” but was exposed by its internal checks. The firm said: “Our procedures quickly uncovered his attempted and fraudulent activities. Mr Callaghan was dismissed, the authorities were alerted, and we are proud of our team’s vigilance, which ultimately led to this result.”
Detectives said the fraud caused lasting damage to clients and their families, some of whom were unaware for years that they had been victims. Investigators described the scheme as “systematic, sustained, and motivated by greed.”
The SRA has confirmed that it worked closely with police during the criminal investigation and disciplinary proceedings. In its 2022 ruling, the Solicitors Disciplinary Tribunal found Callaghan’s conduct “wholly inconsistent with the trust placed in a solicitor.”
The case adds to a growing list of disciplinary matters involving long-term misappropriation of client funds, highlighting the regulatory focus on safeguarding client money. Under SRA rules, solicitors who handle client accounts are required to maintain strict accounting procedures, with immediate reporting obligations if discrepancies arise.
For clients affected by Callaghan’s offences, compensation is being handled directly by BTMK through a dedicated redress scheme. Both firms have expressed regret over the harm caused and reiterated their commitment to full transparency and cooperation with authorities.
Callaghan’s sentencing marks the conclusion of an investigation stretching over five years and underscores the enduring damage that financial misconduct can inflict on both victims and public confidence in the legal profession.