Andrew Derrick John Farmiloe

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

Andrew Derrick John Farmiloe, a solicitor admitted in 1975, acted as a trustee in a high-yield investment scheme (Optimum Returns (BFIG)). He released the entire £9.452 million trust fund to non-qualifying banks (Banco Santander and Bankhaus Lampe) contrary to the Trust's Key Features Document, signed cheques to investors when the trust account lacked funds, gave misguided assurances of no risk, and involved himself in a scheme exhibiting characteristics of fraudulent transactions. The Tribunal found allegations 1, 2, 3, 7 and 8 proved (with recklessness on 1, 3 and 7) but allegations 4, 5 and 6 not proved. It expressly found the Respondent credible and not ill-intentioned and made NO finding of dishonesty. For public protection he was struck off the Roll and ordered to pay £22,000 costs, not enforceable without the Tribunal's leave given his bankruptcy.

Duties found breached:

• Proper basis for allegations
• Not mislead third parties or opponents
• No conflict between current clients
• No improper use of client money

Aggravating factors:

• Respondent drafted the key trust documentation and was responsible for its terms
• Failed to disclose the matter to the firm's Risk Committee despite attending meetings and to the professional indemnity insurance renewal disclaimer
• Significant sums involved (over £10 million) and delayed reporting to partners

Mitigating factors:

• Found to be a credible and not ill-intentioned witness
• Acted under considerable pressure (billing targets, workload, personal circumstances)
• No personal benefit from the Scheme
• Investors were ultimately repaid via insurers
• Genuine remorse and admission of failure as trustee
• Bankruptcy and expulsion from firm; no desire to return to practice