Donald Martin Clitheroe

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

Donald Martin Clitheroe, admitted 1978, allowed his firm's client account to be used to receive and distribute large sums from another firm (Kio) on behalf of client MJ in circumstances showing many indicators of money laundering and mortgage fraud, failed to disclose material information to a mortgagee client, acted in a conflict of interest, and gave/failed to correct misleading information to other solicitors. He admitted all five allegations. The Applicant expressly did not allege dishonesty and no dishonesty was found. Given a prior 2001 finding involving similar money laundering warnings which he ignored, the Tribunal concluded he was not fit to be a solicitor and struck him off, ordering costs subject to detailed assessment (the Applicant had proposed a round sum of £19,000).

Duties found breached:

• Not mislead the court
• Disclose material information to client
• No conflict between current clients
• No improper solicitation or touting

Aggravating factors:

• Prior disciplinary finding in September 2001 involving similar money laundering/bank instrument fraud warnings
• Ignored clear written warnings from the Law Society and the Tribunal about money laundering and mortgage fraud
• Many indicators of money laundering and/or mortgage fraud which he failed to heed
• Facilitated the fraudulent activities of client MJ and Kio

Mitigating factors:

• No allegation or finding of dishonesty; Respondent himself was a victim of the fraudsters
• Respondent eventually reported the activities of MJ and Kio in August 2002
• Admitted all allegations and facts
• Effectively suspended for around 2.5 years having not applied for a practising certificate since 2002
• Devastating personal and financial consequences including bankruptcy and resignation from partnership
• Operated under a heavy workload; instructions came from another firm of solicitors
• No other complaints against him