Stephen Peter David Murrell

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

The Respondent, a solicitor practising at Staple Inn Partnership, acted for and was a director/shareholder of Hamilton Bentley & Partners Limited (HB), which operated an unauthorised land banking collective investment scheme. Despite repeated FSA correspondence and two Counsel opinions indicating the scheme was an unauthorised CIS, he continued to act. He failed to disclose his personal interest in HB to investors, breached undertakings and assurances that investor funds would be retained in client account pending grant of leases (paying away c.£350,000 at Padbury and funds at Rettendon), and breached multiple Solicitors Accounts Rules. The Tribunal found all eight allegations proved. No express finding of dishonesty was made, though gross recklessness was found. The Respondent did not attend. He was struck off the Roll and ordered to pay costs of £42,180.95, not to be enforced without leave of the Tribunal.

Duties found breached:

• No conflict between current clients
• No improper use of client money
• Accounting records, reconciliation and reports
• Honour professional undertakings

Aggravating factors:

• Gross recklessness in ignoring evidence (FSA letters and two Counsel opinions) that the scheme required regulation
• Pursued the course of action in pursuit of profit
• Played a central part in a catastrophic situation causing investors to lose substantial sums
• Failed to advise investors of their rights
• Severely damaged the reputation of the profession and undermined public trust

Mitigating factors:

• No previous disciplinary matters