Louis Stanley Spragg

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

Louis Stanley Spragg, sole principal of Louis Spragg & Co, was found to have committed 18 allegations including four findings of dishonesty (applying the Twinsectra test). An SRA forensic investigation found a minimum client account cash shortage of £85,295.19, with £38,187.48 wholly unexplained, 24 unallocated transfers from client to office account totalling £34,507.71, and a £12,600 stamp duty misposting. Client money was used for the Firm's tax liabilities and to keep the overdraft below £50,000. The Tribunal, proceeding in the Respondent's absence (ill health), found him dishonest and struck him off the Roll, ordering costs of £15,297. The Respondent's bankruptcy did not reduce the costs order per Bloom v Pensions Regulator.

Duties found breached:

• Honesty
• Integrity
• Uphold public trust in the profession
• Act in the client's best interests
• No improper use of client money
• Accounting records, reconciliation and reports
• Competence
• Diligence and timeliness
• Firm governance, systems and compliance
• Cooperate openly with regulators
• No baseless or threatened misconduct report
• Not misrepresent regulated status

Aggravating factors:

• Minimum cash shortage of £85,295.19 on client account not replaced
• Use of client money to pay Firm's tax liabilities (PAYE/NI)
• Transfers made to keep Firm's overdraft lower
• 24 unallocated transfers totalling £34,507.71
• Misleading reconciliation statement using a reversed 'deposit in transit' of £75,712.06 to reduce apparent shortage
• Respondent was meticulous with finances so knew of the transfers and shortage
• Clients suffered losses to be borne by the profession

Mitigating factors:

• No previous disciplinary findings
• Positive character evidence from Mr Burch describing him as a decent, meticulous gentleman
• Apology and expression of shame
• Previously good complaints, claims and accounting record
• Ill health