Stephen Wilbert Dermont Sam & Another

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

Two partners of Sam Moseley & Co faced allegations of conduct unbefitting a solicitor arising from Law Society investigations revealing serious client account deficiencies and a conflict of interest. The First Respondent (Sam) was found to have acted in a conflict of interest through his interest in AGMS, made unauthorised inter-client transfers (teeming and lading), and used clients' money (notably £57,798 from O Property Limited) to pay the firm's PAYE. The Tribunal expressly found his conduct dishonest to the high standard required and struck him off the Roll, ordering £40,000 costs. The Second Respondent was found liable as a partner for the accounts breaches but no dishonesty was alleged or found; given strong mitigation he was reprimanded and ordered to pay £10,000 costs. One allegation was withdrawn and another (failure to deliver an Accountant's Report) left on file due to the accountant's lien on the papers.

Duties found breached:

• No improper communication with the court
• No own-interest conflict
• No improper use of client money
• Diligence and timeliness

Aggravating factors:

• Express finding of dishonesty against the First Respondent (Twinsectra test met to high standard)
• Use of client funds without consent (O Property Limited and Mr D)
• Systematic inter-client transfers/teeming and lading to disguise debit balances
• First Respondent's continued failure to accept the conflict of interest and cavalier attitude to stewardship of client funds
• Minimum cash shortage of at least £179,258.55 on client account

Mitigating factors:

• For Second Respondent: no dishonesty alleged or found; relied on partner and experienced bookkeeper; had set up accounting systems; did everything possible to put matters right; severe financial and professional loss including bankruptcy and loss of home; ensured no client suffered loss; positive references
• Shortage was ultimately rectified in full by the second inspection