Omotayo Obatolu & Another

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

Both respondents were partners at Bearing Sachs LLP. The Tribunal found all allegations proved arising from six conveyancing transactions: breaches of SAR 1998 (Rules 32, 22, 15 Note (ix)) by failing to keep proper accounting records, making improper transfers that overdrew client ledgers, and allowing client account to be used as a banking facility. The First Respondent additionally breached the Money Laundering Regulations 2007 and Rules 1.04 and 3.19(d) SCC by failing money laundering checks, misusing mortgage funds and failing to report to lenders. The Tribunal expressly noted there was no allegation of dishonesty. The First Respondent (a registered foreign lawyer) was struck off the Register of Foreign Lawyers; the Second Respondent was fined £5,000 with a recommendation restricting her practice for three years. In this case (10427-2010) costs of £37,000 were apportioned (£27,000 to First Respondent, £10,000 to Second Respondent); the First Respondent was additionally ordered to pay £30,000 costs in linked case 10420-2010.

Duties found breached:

• Act only on proper, lawful instructions
• No improper use of client money
• Report serious misconduct of others
• AML and crime-prevention compliance

Aggravating factors:

• Consistent disregard for the rules and responsibilities of the profession; not isolated incidents
• First Respondent was the firm's Money Laundering Reporting Officer yet claimed never to have heard of the banking facility rule
• Flagrant breaches exposing clients and lenders to high risk
• Repeated breaches across six conveyancing transactions and a linked case

Mitigating factors:

• No previous disciplinary matters
• Second Respondent was an inexperienced solicitor
• Remorse and steps taken to prevent recurrence
• Character references provided
• Both respondents' difficult financial circumstances