Investigation revealed client account shortages, disclosure failures and misconduct
A solicitor has been struck off the Roll of Solicitors after the Solicitors Disciplinary Tribunal found he acted dishonestly when completing professional indemnity insurance applications and committed a series of serious regulatory breaches over several years.
The tribunal heard that Shashi Patel, principal of Patel & Co, provided misleading information in applications for professional indemnity insurance covering the 2021–2022 and 2022–2023 policy years. The tribunal found that Patel failed to disclose previous investigations by the Solicitors Regulation Authority (SRA), despite being aware of them when completing the applications.
According to the judgment, Patel answered “no” to questions asking whether his practice had been subject to investigations or enquiries by the SRA, despite previous regulatory investigations and being aware that the SRA was investigating matters arising from the firm’s 2022 self-report that followed a self-report concerning an alleged cyber fraud incident in 2022.
The tribunal concluded that Patel knew his answers were misleading and determined that ordinary decent people would regard his conduct as dishonest. It also found that he lacked integrity and had breached multiple SRA Principles and provisions of the Code of Conduct.
The disciplinary proceedings arose from an SRA forensic investigation launched after Patel & Co reported that it had fallen victim to a vishing scam in April 2022, resulting in unauthorised withdrawals from client accounts. Although the funds were later reimbursed, the investigation uncovered extensive compliance failures within the practice.
Among the proven allegations were failures to maintain proper client account records, allowing shortages to exist on client accounts, failing to carry out adequate client account reconciliations, and retaining client money long after there was no proper reason to hold those funds.
The tribunal found that hundreds of client matters contained residual balances that had remained untouched for extended periods. Some dated back many years, with one matter showing no activity since 1999.
Patel was also found to have failed to obtain or provide an accountant’s report requested repeatedly by the SRA during its investigation. In addition, the tribunal determined that the firm did not have a compliant documented firm-wide risk assessment required under anti-money laundering regulations.
The judgment noted that Patel had previously appeared before the tribunal in 2016 for similar misconduct involving accounting records, reconciliations, client account deficits and accountants’ reports.
Patel did not attend the hearing and was not represented. The tribunal decided it was appropriate to proceed in his absence after finding that he had been properly notified and had chosen not to participate.
In its sanction decision, the tribunal described the misconduct as being of an exceptionally high level of seriousness. It highlighted the proven dishonesty, repeated breaches over a prolonged period and Patel’s previous disciplinary history.
The tribunal ordered that Patel be struck off the Roll of Solicitors and directed him to pay costs of £45,337.