Habibullah Khan

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

Habibullah Khan, principal of HK Solicitors, faced eight allegations relating to holding client monies in office account, failing to keep proper records, failing to account promptly to clients, retaining disbursement funds, failing to remedy breaches, COFA failures, making an untrue statement on a PII proposal form, and providing untrue information to the SRA. The Tribunal found all allegations proved (Allegation 1.8 in part). Dishonesty was expressly found in respect of holding client monies in office account (1.1), the untrue PII proposal form answers (1.7), and two particulars of untrue statements to the FIO (that the firm held no client funds, and that the LAA had identified no issues). Dishonesty was not found for the ATE payments and LDF statements. Given the findings of dishonesty and no exceptional circumstances, the Respondent was struck off the Roll and ordered to pay costs of £7,000 (reduced from £40,000 based on his limited means).

Duties found breached:

• Honesty
• No conflict between current clients
• Handle inadvertently received material
• Segregate client money
• No improper use of client money
• Prompt accounting and return of money
• Self-report to the regulator
• Report serious misconduct of others

Aggravating factors:

• Findings of dishonesty
• Misconduct repeated and deliberate over a period of time
• Element of concealment in completion of PII form and answers to SRA
• Knew actions were in material breach of obligations to protect public and reputation of profession
• Significant experience as sole practitioner with direct control and responsibility

Mitigating factors:

• Rectified the office account with his own money
• Made some admissions to the allegations
• Motivation was to keep the firm afloat, not personal enrichment
• Health issues at material time
• Positive character references
• No evidence of harm caused to individual clients
• No previous disciplinary matters