Sheffield Law Firm PM Law Ltd Investigated for £39.5 Million Client Fund Fraud
PM Law Ltd, a Sheffield-headquartered law firm with 25 offices across Yorkshire, Cumbria, Berkshire, Derbyshire, and London, collapsed on 2 February, leading to hundreds of redundancies and impacting tens of thousands of client cases.
The Solicitors Regulation Authority (SRA) intervened following the closure, revealing an ongoing investigation into what it terms "sophisticated suspected fraud," centred on the "improper removal and misuse" of GBP#39.5 million of client funds. The SRA estimates that claims against its compensation fund have already surpassed GBP#21 million.
The PM Law group comprised 11 companies, operating under more than 30 trading names, including Proddow Mackay and Butterworths Solicitors. The firm specialised in personal injury, wills, and conveyancing, and reportedly employed over 600 staff members.
Paul Hastings, the SRA's director of client protection, stated that the intervention into PM Law has been among the most extensive and intricate the authority has ever undertaken, necessitating the processing of 25,000 communications and 17,000 inquiries.
As of 17 April, the SRA Compensation Fund had disbursed GBP#9.31 million across 92 claims to former clients. An additional GBP#6.8 million from funds held by the firm at the time of intervention has also been paid out. Furthermore, 9,300 client files have been returned.
Clients previously reported facing significant disruptions, including the potential collapse of home purchases and sales, and the loss of deposits due to the firm's abrupt closure. Staff were reportedly informed of their job losses via notices posted at company premises.
Report Fraud, a national service operated by the City of London Police, has confirmed its awareness of the fraud allegations against PM Law and is liaising with the SRA regarding the matter.
