Richard James Morris; Candey Limited

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

Richard James Morris, a solicitor at Candey Limited, faced allegations relating to inadequate source of funds checks under the Money Laundering Regulations 2007 and improper use of the client account as a banking facility in connection with c.£24m of settlement monies received in June 2015. Although Mr Morris admitted all allegations against him, the Tribunal found that Enhanced Due Diligence was not required in the circumstances and therefore dismissed the MLR-related allegations (1.1 and 1.2) against him and all allegations (3.1-3.3) against the firm. The Tribunal found allegation 1.3 (breach of Rule 14.5 by facilitating transfers of £7,541,716.18 with no underlying legal transaction) proved. No dishonesty was alleged or found; the misconduct was inadvertent due to Mr Morris's lack of understanding of Rule 14.5. He was fined £6,000 and ordered to pay £10,000 costs. The firm was ordered to pay no costs, its unreasonable conduct in defending precluding any award in its favour.

Duties found breached:

• Act in the client's best interests
• Non-discriminatory acceptance and cab-rank
• No improper use of client money

Aggravating factors:

• Mr Morris was an experienced solicitor with direct control over the circumstances of his misconduct
• His conduct caused harm to the reputation of the profession

Mitigating factors:

• Misconduct was inadvertent, arising from a lack of understanding of Rule 14.5, not deliberate or planned
• Single episode in an otherwise unblemished career
• No previous disciplinary matters
• Demonstrated remorse and insight
• Early admissions made from the outset of the investigation and maintained throughout
• No financial loss to the client
• Delay by the SRA in bringing the proceedings