Ban and £1.3k fine for law firm's financial head

The former head of finance of a firm at the centre of a £39.5m fraud investigation has been banned from working at law firms.

Sheffield-based PM Law Ltd, which had offices across the country, closed suddenly in February, leaving hundreds of employees out of work and tens of thousands of clients in limbo.

The Solicitors Regulation Authority (SRA) said on Tuesday that Jonathon Bostock, who was also PM Law's compliance officer, had allowed improper client account withdrawals and had fabricated account balances.

Bostock, who is not a solicitor but a chartered accountant, was also fined £1,350, the SRA said, with its wider investigation "ongoing". Bostock has been approached for comment.

The SRA previously said as much as £39.5m in client money could be missing from the PM Law group, which entered voluntary liquidation on 3 March.

The group consisted of 11 companies, 25 offices and more than 30 trading names, and included firms such as Proddow Mackay, Butterworths Solicitors and WB Pennine Solicitors across Yorkshire, Cumbria, Berkshire, Derbyshire and London.

It specialised in personal injury, wills and conveyancing and, according to its website, employed more than 600 members of staff.

Following the firm's sudden closure on 2 February, dozens of clients got in touch with the BBC, saying they had been left stranded in the middle of house sales and were facing worrying financial implications such as double mortgage payments and lost deposits.

In April, the SRA, which intervened after the closure, said more than £21m of claims had been made to its compensation fund.

According to the watchdog, Bostock exercised senior managerial control and financial authority across the firm, including oversight of its financial controls.

He led the firm's accounts team and reported to Donald Mackay, solicitor, owner and chairman of the firm.

The SRA found Bostock had breached his duties by permitting improper client account withdrawals resulting in shortages and failed to report serious financial difficulties.

He had also provided the SRA with false or misleading information and fabricated account balances to misrepresent the firm's financial position.

The SRA said Bostock could no longer work for SRA-regulated law firms as a head of legal practice, head of finance and administration, manager or employee.

Amy-Jade Hughes, from Rotherham, had been in the process of selling her house to move to Australia with her young family when PM Law shut.

She said she had mixed feelings about the SRA's sanction for Bostock.

"Him being banned doesn't help all the individuals who have and still are suffering from this disaster," she said.

"So many people have suffered and it's caused so many issues in so many areas that are still ongoing even after the SRA have helped.

"I hope there's a way for everyone to get compensated for all this nightmare."

Einion Jones was another client who was in the middle of purchasing a buy-to-let property.

Jones, from Hebden Bridge, said that while he had not been as badly affected as others, he believed the SRA's decision "won't be any comfort" to the many clients left out of pocket.

"He [Bostock] has been asked to pay just £1,350. What a disgrace after what he put everyone through," said Jones.

"He won't care. No deterrent to anyone else doing the same really, is it?"

Katie Brown, from Staffordshire, who was a client of John M Lewis & Co, one of PM Law's associated firms, called the SRA's sanction "a joke".

"[Bostock] caused stress, made sales fall through and all he is getting is a fine 'to cover costs' and to not be able to run a solicitor firm again," she said.

"That's disgusting."

Listen to highlights from South Yorkshire on BBC Sounds, catch up with the latest episode of Look North