£129k client money scandal: David Berens fined, Oliver Hanrahan erased from roll

Berens fined and restricted; Hanrahan struck off after £129k client money misuse exposed

The Solicitors Disciplinary Tribunal (SDT) has imposed severe penalties on two solicitors after they admitted to mishandling client funds in a series of financial breaches that spanned several years.

At the centre of the case were David Anthony Berens, a solicitor admitted in 1988 and former manager of Fuglers (operating as David Berens & Co LLP), and Oliver John Anthony Hanrahan, admitted in 1994. Both men admitted allegations of professional misconduct following an investigation by the Solicitors Regulation Authority (SRA).

The tribunal heard that on 15 August 2017, £129,827.22 belonging to two clients — identified only as Clients A and B — was wrongly used to pay Stamp Duty Land Tax (SDLT) owed by another client, referred to as Client C. Neither A nor B consented to the use of their funds.

Berens admitted he failed to notify the clients promptly after discovering their money had been diverted. The panel also found that on 3 August 2015, a separate £95,012 was transferred from the firm’s client account to individuals who were not entitled to receive it.

Hanrahan’s conduct went further. The tribunal found that he caused or allowed the £129,827.22 transfer and later received £10,800 directly into his personal bank account from Client C in January 2018. He provided his own account details to Client C by email.

The SRA’s forensic investigation revealed further systemic failures. Between 2012 and 2017, Berens failed to properly manage the firm’s bank accounts, repeatedly breaching the Solicitors Accounts Rules.

Both men admitted the allegations in full. The SDT considered aggravating and mitigating factors before reaching its decision.

In Berens’ case, the tribunal judged his misconduct “more serious” but concluded a financial penalty, rather than removal from practice, was proportionate. He was ordered to pay a £7,501 fine — forfeited to the Crown — along with £7,500 in costs.

However, restrictions were imposed on his future practice. Berens is permanently barred from acting as a manager or owner of an authorised body, from serving as a compliance officer, and from handling client money or operating client accounts.

The tribunal noted Berens had a previous regulatory history, having been fined £20,000 in 2013 for unrelated client account misuse. Despite this, it accepted that his latest breaches did not involve dishonesty and had not resulted in permanent financial loss to clients.

Hanrahan faced a harsher sanction. The SDT ruled that being struck off the Roll of Solicitors was the only proportionate response. The panel emphasised that he had already been struck off in Ireland and saw no exceptional circumstances to justify leniency. He was also ordered to pay £10,000 in costs.

In its judgment, the tribunal reaffirmed the principle of open justice but anonymised the names of clients. Chair H Dobson stressed that the sanctions were designed to protect the public and preserve trust in the profession.

The case highlights how serious breaches of the Solicitors Accounts Rules can end careers and severely restrict future practice rights. For Berens, it marks the second time his handling of client funds has led to regulatory action. For Hanrahan, the judgment brings his career in law to a permanent close.