'Potential fraud' investigated at closed law firm

A law firm which left tens of thousands of people in limbo when it closed suddenly is being investigated by the regulator in connection with a potential fraud.

Sheffield-based PM Law shut on 2 February, leaving hundreds of employees out of work and many clients stranded mid-transaction, including in the middle of house sales.

The Solicitors Regulation Authority (SRA) estimated the closure of PM Law, which had 24 offices in Yorkshire, Derbyshire, Cumbria and Berkshire, had impacted tens of thousands of live cases.

In an update on Monday, the SRA, which intervened after the firm's closure, said it was investigating potential fraud, including the misappropriation of client money.

The SRA, which previously stated that PM Law had closed "not in a manner we would expect", confirmed that the firm notified it of the closure on 2 February.

Jonathan Peddie, executive director of legal and enforcement, said: "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."

Peddie said the investigation was centred around 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," he said.

"We have also shared information with the appropriate law enforcement agencies."

PM Law, a network of firms trading under a single umbrella brand, specialised in personal injury, wills and conveyancing.

According to its website, it employed more than 600 people at firms including Proddow Mackay, Butterworths Solicitors, WB Pennine Solicitors and Angela Viney Conveyancing Services.

This included offices in Ilkley near Bradford, Brighouse in West Yorkshire and Kendal in Cumbria.

Some clients who spoke to the BBC said the closure left them stranded mid-house sale or liable for two active mortgages after redemption payments were not made.

Similarly, staff said they were devastated to discover they had lost their jobs through a notice posted in the firm's windows.

The BBC has made repeated attempts to contact PM Law at their Sheffield headquarters in person, by telephone, via email.

We have also put questions to them via the SRA and the law firm appointed as intervention agents by the body. In addition, we have put questions to a number of senior staff via business social network LinkedIn.

The SRA said its intervention agent, Gordons LLP, had taken possession of files and money, including clients' funds, held by the firm, and was "diligently" working through tens of thousands of files.

Further details on how Gordons LLP will be supporting clients are available on the firm's website.

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