S V Koranteng

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

Consolidated proceedings against a solicitor's clerk and two solicitor partners of Koranteng Hughes & Co. Koranteng gave a US$1million solicitor's undertaking in a suspect petroleum/oil-loan transaction and paid out client monies without identity checks; the Tribunal found him grossly reckless (not dishonest) and, with seven proved allegations plus a prior disciplinary record, struck him off and ordered £15,658.11 costs. [Respondent 3], much less culpable and unaware of the undertaking, was reprimanded and ordered to pay £2,500 costs. The s.43 allegation against the clerk was not proved, but he was found to have been intimately involved and ordered to pay £10,000 costs. Costs against the two solicitors not enforceable without leave.

Duties found breached:

• Not mislead third parties or opponents
• Act in the client's best interests
• Disclose material information to client
• No conflict between current clients
• Accounting records, reconciliation and reports
• Professional indemnity insurance
• Honour professional undertakings

Aggravating factors:

• Gross recklessness as to duties in a transaction bearing the hallmarks of fraud and/or money laundering
• Paying out client monies without appropriate identity investigations
• Giving a US$1million undertaking without ensuring it could be honoured
• Koranteng's previous appearance before the Tribunal (fined £3,000, costs £9,000 in August 2009)

Mitigating factors:

• [Respondent 3] was unaware of the undertaking and oil transaction until February 2009
• [Respondent 3] made efforts to obtain books and arrange the Accountant's Report
• No consequential losses to lender clients and failures not deliberate (oversight)
• [Respondent 3] was naive, newly qualified and inexperienced when entering partnership; apologised unreservedly
• [Respondent 3] remained liable on the undertaking and faced possible bankruptcy