S V Koranteng

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

Koranteng Hughes & Co arranged a US$1million solicitor's undertaking to facilitate funds into client account for a Ghanaian petroleum transaction that collapsed, alongside conveyancing failures involving undisclosed price reductions to lenders and acting for conflicting parties. Partner Samuel Victor Koranteng was found grossly reckless (transaction bore hallmarks of fraud/money laundering) on seven allegations and, given a prior disciplinary record, was struck off and ordered to pay £15,658.11 costs (not enforceable without leave). Partner [Respondent 3], far less culpable and unaware of the undertaking, was reprimanded and ordered to pay £2,500 costs. The s.43 allegation against the solicitor's clerk [Respondent 1] was not proved, but he was ordered to pay £10,000 costs as he had been intimately engaged in orchestrating and drafting the undertaking. No express finding of dishonesty was made.

Duties found breached:

• Not mislead third parties or opponents
• Act in the client's best interests
• Disclose material information to client
• No conflict between current clients
• Accounting records, reconciliation and reports
• Professional indemnity insurance
• Honour professional undertakings

Aggravating factors:

• Koranteng's gross recklessness in giving a US$1million undertaking he could not honour and paying out monies without identity checks
• Transaction had the hallmarks of fraud and/or money laundering
• Koranteng's previous appearance before the Tribunal (fined £3,000 plus £9,000 costs on 11 August 2009)
• Seven admitted and proved allegations against Koranteng

Mitigating factors:

• [Respondent 3] had no knowledge of the undertaking or oil transaction until February 2009
• Failures to disclose to lenders were by oversight, not deliberate
• No consequential losses to lender clients
• [Respondent 3] was naive and inexperienced, relatively newly qualified when entering partnership
• [Respondent 3] made efforts to obtain books and arrange the Accountant's Report
• [Respondent 3]'s much lesser culpability and unreserved apology