Ernest Hedwa Mugadza

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

The Respondent, sole director, COLP and COFA of Denning Solicitors, employed two fraudsters (NK and RW) without adequate checks. He recklessly authorised 10 payments totalling £2,681,695.77 to unrelated third parties across five conveyancing transactions bearing the hallmarks of mortgage fraud, without sight of ledgers, completion statements or files, causing a cash shortage of £2,686,563.62. The Tribunal found recklessness and lack of integrity (objective test applied, not dishonesty). All six allegations were found proved (most admitted). Given the seriousness, the substantial harm, and it being his second appearance before the Tribunal, he was struck off the Roll and ordered to pay costs of £14,300.

Duties found breached:

• No abuse of process or coercive powers
• Proper basis for allegations
• Personal probity and fitness to practise
• No improper use of client money
• AML and crime-prevention compliance

Aggravating factors:

• Misconduct involved ten payments across five separate transactions, not a one-off
• Respondent knew he was taking a risk and was aware he was in breach of obligations
• Second appearance before the Tribunal, having not heeded the lesson of his previous appearance
• Substantial harm and very high sums misappropriated
• Sought to absolve himself of responsibility by relying on the bank and NK

Mitigating factors:

• Deceived/manipulated by RW and NK who were sophisticated fraudsters
• On discovering fraud, went to Police and notified insurers
• Co-operated with the SRA investigation
• Made substantial admissions in proceedings
• Showed remorse and apologised to clients