Hector Diaz Suner

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

The Respondent, a Registered European Lawyer and sole principal of Hector Diaz & Co, admitted numerous breaches of the SRA Principles and Accounts Rules, including dishonesty under the Twinsectra test in relation to withholding client money, making improper and personal withdrawals from client account, and failing to protect client money. There was an unquantified shortfall on client account affecting six or seven clients, with funds intended for Spanish tax and registration formalities not applied, including failure to pay inheritance tax for the G Family Trust (Compensation Fund paid out £35,945.05). The parties submitted an agreed outcome under the Carecraft procedure. The Tribunal approved the agreed strike-off and costs of £19,998.50, but declined to leave the two unadmitted allegations (1.1.1 and 1.7) on file, instead dismissing them as not proved. The Respondent was struck off the Register of European Lawyers and ordered to pay costs of £19,998.50.

Duties found breached:

• Accounting records, reconciliation and reports
• Cooperate openly with regulators
• Honesty
• No conflict between current clients
• No improper use of client money
• Non-discriminatory acceptance and cab-rank
• Prompt accounting and return of money
• Segregate client money
• Uphold public trust in the profession

Aggravating factors:

• Client money shortfall affecting six or seven clients who were unaware their Spanish registration and tax formalities had not been completed
• Personal payments made from client account (salaries, rent, daughter's accommodation)
• Up to £216,837.21 client money withheld from client account, £66,837.21 not returned
• Failure to account to the G Family Trust for £35,865.36 (Spanish inheritance tax never paid), requiring Compensation Fund payout of £35,945.05
• Repeated failure to cooperate with the SRA despite multiple prompts; admitted he 'shied away' from SRA emails
• Practised for years without registering as a REL (until 2006) and without renewing registration/recognition

Mitigating factors:

• Engaged with proceedings and made extensive admissions including admissions of dishonesty
• Entered into a Statement of Agreed Facts, Admissions and Outcome (Carecraft procedure)
• Claimed to have made some payments to rectify shortfall (loans from family)