It has been revealed that an investigation into potential fraud has been launched into a law firm which owned Cumbrian brand Butterworths.
Butterworths branches across the county – owned by Sheffield-based PM Law Group – closed suddenly on February 2.
Posters were put up at branches, including those in Cockermouth, Carlisle, Penrith, Kendal and Hensingham, saying: “Due to regulatory matters, the PM Group businesses carried out in within this building can no longer trade.”
The Solicitors Regulation Authority, which monitors law firms to make sure they are complying with the rules, launched an immediate investigation.
It has revealed today that it is investigating potential fraud and misappropriation of client money and is working with the police.
It added that it was investigating the firm and individuals linked to it.
Jonathan Peddie, the authroity’s executive director of legal and enforcement, said: “We are investigating a potential fraud, including the misappropriation of client money.
“We recognise that there is a strong public interest in this case, given the significant impact on clients.
“Alongside doing everything we can to protect and support clients, we are moving as quickly as we can with our investigation. It is a complex picture, and we are still establishing the core facts.
“We are focused on establishing what occurred, how it happened, and who was responsible.
“We will take appropriate action to protect the public, including enforcement action against anyone who has been involved in misconduct.
“We have also shared information with the appropriate law enforcement agencies.”
PM Law Group has 11 firms across the country and also trades under a further 30 names.
The authority intervened on Wednesday February 4.
It said it had visited 24 offices belonging to PM Law, including in Cumbria, worked with intervention agent Gordons LLP and taken possession of files and money – including clients’ funds – held by the firm.
It said it included accessing their case management systems, which identified tens of thousands of live cases.
It had also, it said, contacted clients relating to more than 100 urgent matters, primarily relating to litigation and conveyancing cases, received more than 50 applications to our compensation fund and have begun making emergency payments for those with the most urgent need and notified more than 100 courts across the country about the firm’s closure and the impact this could have on potentially urgent litigation matters.
The authority said it had received over 80 applications to its compensation fund to date.
People who had ongoing matters with PM Law and its affiliates are urged to access further information and support on a dedicated part of Gordon LLP’s website.
The authority has also provided initial guidance for those impacted.
