David Adams

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

David Adams, an unqualified conveyancing clerk at Widdows Mason for eleven years, conducted over fifty mortgage transactions (all involving a Mr L) between 1991 and 1995 in which he failed to disclose to building society lenders deposits paid direct, allowances on completion, reductions in purchase price below the mortgage advance, and sub-sales, in breach of Practice Rule 1. The Tribunal found the allegation substantiated, expressly accepted he was NOT dishonest but displayed an exceptional degree of naivety, and noted his employers had failed to supervise him adequately. It made a section 43 order controlling his future employment in the profession. Because of the supervision failings, the respondent was ordered to pay only half of the applicant's fixed costs (£535.00 inclusive).

Duties found breached:

• Disclose referrals, commissions and benefits
• No conflict between current clients

Aggravating factors:

• Clerk of many years' experience believed it acceptable to ignore clients' clear instructions
• Conduct continued even after a prior complaint (Mr C) and after Law Society property fraud guidance had been published
• Over fifty transactions conducted in the manner of concern

Mitigating factors:

• Found not dishonest; acted out of naivety rather than improper intent
• Made no personal gain; received only his normal salary
• Long record of exemplary employment over eleven years; respected and trusted member of staff
• Employers failed to provide adequate supervision and training; partners authorised back-to-back transactions and allowances
• Obtained authorisation from a partner for the type of transactions
• No building society client suffered loss; no criminal investigation
• Cooperative - did not seek to deny what occurred and apologised to the firm