H W Endeley, D J Stevenson & Another

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

In a multi-national partnership (Pinnacle Solicitors), the First Respondent (registered foreign lawyer) and Second Respondent (solicitor) were found guilty of serious misconduct, including SARs breaches, allowing client money into office account and using it for their own benefit, and conflict of interest. The First Respondent wrote a deliberately misleading letter to client KMC, which the Tribunal found dishonest under the Twinsectra test. The First Respondent was erased from the Register of Foreign Lawyers and the Second Respondent struck off the Roll, jointly liable for costs of £20,685.64. The Third Respondent, a salaried partner in reality functioning as an assistant solicitor and an innocent victim, had allegations of accounting breaches proved but no order was made against her. A Law Society compensation direction (£162,467.29 paid to Mrs O) was ordered enforceable as a High Court order.

Duties found breached:

• No taking unfair advantage
• Costs and fee transparency to client
• No own-interest conflict
• No improper use of client money
• Accounting records, reconciliation and reports
• Diligence and timeliness
• Not misrepresent regulated status

Aggravating factors:

• Lack of co-operation throughout disciplinary proceedings by the First and Second Respondents
• Second Respondent made no response despite personal service
• Rolling unreplaced client account shortages
• Creation of a fictitious ledger to answer FIU queries

Mitigating factors:

• Third Respondent's minor role and lack of actual knowledge
• Third Respondent's cooperation and positive testimonials