Alastair Gourlay Howard Lapsley

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

Sole practitioner admitted three accounts-rules allegations involving a client account shortage of £87,794.85 arising from 77 unallocated client-to-office transfers made by his long-serving cashier, Mr T. The Tribunal expressly found that dishonesty (allegation iv, misappropriation) was NOT substantiated to the relevant standard, accepting he had been deceived by a trusted employee. However, his conduct amounted to gross dereliction of duty and extraordinary recklessness (notably leaving signed blank cheques and transfer forms), aggravated by a prior 1987 finding of similar accounts misconduct. He was struck off and ordered to pay agreed fixed costs of £9,000.

Duties found breached:

• No improper use of client money
• Accounting records, reconciliation and reports

Aggravating factors:

• Experienced sole practitioner with full responsibility for compliance
• Substantial client account shortage (£87,794.85)
• Improper transfers occurring over a period of time
• Left signed blank cheques and transfer forms for staff (extraordinary recklessness)
• Prior 1987 Tribunal finding of accounts rules breaches and improper use of client money (fined £500)

Mitigating factors:

• Frank admission of allegations (i)-(iii)
• Deceived by a long-trusted employee
• Over 37 years of otherwise honest practice
• Character witnesses spoke in support
• Monies used to maintain the firm, not for personal enrichment
• Significant personal/professional losses suffered