Michael Fabian Spungin

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

Michael Fabian Spungin, admitted 1962 and practising as Armstrong Spungin & Scott in Nottingham, was found to have improperly withdrawn client money, made false accounting entries (including seventeen fictitious loans totalling £28,692.81), and failed to pay clients' money into client account. An Investigation Accountant's report revealed a minimum cash shortage of £8,706.59 on client account. The Compensation Fund's net exposure was £1,316,071.75. He admitted the allegations in full and did not attend due to ill health. The Tribunal found the conduct dishonest and disgraceful, struck him off the Roll, and ordered costs of £5,675.85.

Duties found breached:

• No improper use of client money
• Prompt accounting and return of money
• Accounting records, reconciliation and reports
• No improper solicitation or touting

Aggravating factors:

• Misconduct took place over a period of time (February 1991 to September 1994)
• Large sums of clients' money taken for his own purposes
• Seventeen fictitious loans totalling £28,692.81
• Substantial exposure of the Compensation Fund (net £1,316,071.75)
• Minimum cash shortage of £8,706.59 on client account
• Falsified accounting records including fictitious repayments

Mitigating factors:

• Respondent suffering from mental and physical ill health
• Respondent claimed he always intended to repay the monies
• Financial hardship and dependence on his children
• Full admission of the allegations