Craig Nicholas Hollingdrake & Elaine Saunders

Findings — machine-extracted (anthropic-batch:claude-opus-4-8); verify against the decision

On an agreed outcome dealt with on the papers, the SDT approved sanctions against two of four respondents arising from the Firm's handling of the 'Client A' storage pod/parking space investment scheme (2011-2016), through which about £101.5m passed. The Second Respondent (Hollingdrake, the Firm's COFA) admitted failing to prevent the Firm using its client account as a banking facility and making improper transfers/payments in breach of the SRA Accounts Rules and Principles; his conduct was assessed as moderately serious (Fine Band 2) and he was fined £7,500 plus costs. The Fourth Respondent (Saunders, a non-solicitor fee earner) admitted breaches of Principle 6 and Accounts Rules and consented to a section 43 order restricting her employment in legal practice, plus costs. No dishonesty was alleged or found; breaches were treated as inadvertent with no client loss.

Duties found breached:

• Proper basis for allegations
• No improper communication with the court
• Proper termination and return of instructions
• No improper use of client money

Aggravating factors:

• Misconduct took place repeatedly over several years
• Given length of qualification and experience (Second Respondent), he ought reasonably to have known the conduct was in material breach of obligations to protect the public and reputation of the profession
• Very substantial sums (estimated £101,509,669.20) passed through client account improperly

Mitigating factors:

• Exemplary careers with no prior disciplinary findings for both respondents
• Breaches were inadvertent and caused no loss to clients or purchasers
• Second Respondent was not the main protagonist and not a fee earner on the transactions; culpability arose from his COFA role
• Fourth Respondent was not a solicitor or director and was supervised by an experienced solicitor (Mr Bujakowski)
• No transfers to unknown third parties; no money laundering or insolvency-avoidance element made out
• Firm undertook firm-wide SAR training when alerted; cooperation with the SRA
• Proceedings had financially disastrous consequences for the Second Respondent