Stella Peter, Kate U Echeazu & Frank N Ezuma

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

Three solicitors who were partners at Phoenix Nova Solicitors faced disciplinary proceedings arising from systemic conveyancing and accounts failures. The First and Second Respondents misrepresented purchase prices to lenders, failed to report incentives and over-lending, and failed to supervise staff. The Third Respondent was found to have acted dishonestly (applying Twinsectra) by causing a cash shortage of nearly £1 million through an improper payment from client account. Dishonesty was found only against the Third Respondent. All three were struck off the Roll. The Tribunal noted the First and Second Respondents had previously been reprimanded in 2007. Costs of £18,000 were apportioned (£4,000/£5,000/£9,000) to reflect differing culpability and the lack of engagement by the Second and Third Respondents.

Duties found breached:

• No improper communication with the court
• No conflict between current clients
• No improper use of client money
• Accounting records, reconciliation and reports
• Safeguard documents and limit liens
• Diligence and timeliness
• Supervise staff and delegated work
• Truthful, non-misleading advertising

Aggravating factors:

• Previous appearance before the Tribunal in March 2007 with substantiated accounts rules breaches (reprimanded)
• Systemic and repeated breaches across multiple conveyancing transactions
• Allegations placed at the highest end of the scale
• Catastrophic consequences for clients and the public - clients lost money, businesses paid punitive interest, lender clients unaware of true circumstances
• Cash shortage of almost £1 million caused by Third Respondent's dishonest conduct
• Second and Third Respondents failed to engage with proceedings, increasing costs

Mitigating factors:

• First Respondent cooperated and engaged throughout proceedings and sought to remove her own name from the Roll
• First Respondent made admissions to allegations 2-5, 9 and 10
• First Respondent was out of the country when the client account funds were transferred and took steps to notify insurers and SRA on return
• First Respondent's personal circumstances - widow, daughter with sickle cell anaemia, own poor health and financial constraints, over 20 years previously unblemished
• Character references attesting to First Respondent's good credibility