S P Kenny & E Coates

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

CK Solicitors was intervened into by the SRA following discovery of a large client account shortage. First Respondent Simon Kenny, sole principal and a Deputy District Judge, was found to have misused a suspense ledger (2-009), improperly held office money in client account, made improper withdrawals, misled his reporting accountant (falsely claiming client money had been sent to Thailand and returned, when it was actually a £300,000 loan from Mr White used to plug the deficit), submitted a misleading PII proposal, practised in an unrecognised partnership and failed to manage the firm. The Tribunal expressly found him dishonest (Twinsectra test) on allegations 1.3 and 1.4 and struck him off, with costs of £56,853.79 not to be enforced without leave due to impecuniosity. Third Respondent Emma Coates (a FILEX, joint account signatory) admitted several accounts breaches and was found liable for improper withdrawals but was found NOT dishonest on most matters; dishonesty was expressly found only on allegation 2.2.3 (the improper £4,825 'dummy bill' withdrawal on client Mr K's matter). As a non-solicitor she received a section 43 order and was ordered to pay costs of £44,152.08. The Tribunal declined to impose the forensic investigation costs jointly and severally. The Third Respondent's later appeal to the High Court was struck out.

Duties found breached:

• No conflict between current clients
• No improper use of client money
• Account for interest on client money
• Report serious misconduct of others

Aggravating factors:

• Deliberate and systematic concealment of a very large client account deficit from reporting accountant and regulator
• First Respondent was not only a solicitor but also a Deputy District Judge responsible for administering justice
• Over £526,606 withdrawn from client account through ledger 2-009 in under 18 months
• Damage to the reputation of the profession and serious risk to the public
• Contribution to consequences including the reporting accountant's suicide

Mitigating factors:

• Third Respondent was heavily influenced/misled by the First Respondent and was in some respects a victim
• Third Respondent admitted several allegations and accepted fault, though denying dishonesty
• Third Respondent under severe financial and personal pressure, having lost around £600,000

⚠ figures not found verbatim in the source were dropped: ["unverified_costs_amount=101005.87"]