Stephen Wilbert Dermont Sam & Another

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

Two partners of Sam Moseley & Co faced allegations of accounts breaches. The First Respondent (Sam) was found to have acted in conflict of interest through his ownership/role in bridging finance company AGMS, permitted withdrawals breaching Rule 22(8), improperly used clients' money for other clients and for the firm's own PAYE liability (£57,798 from O Property Limited), and failed to remedy breaches or deliver an Accountant's Report. The Tribunal made an express finding of dishonesty against the First Respondent to the high (criminal) standard, applying Twinsectra v Yardley and Barlow Clowes. He was struck off and ordered to pay £40,000 costs. The Second Respondent, a criminal practitioner who relied on his partner, was found liable as a partner but no dishonesty was alleged; he was reprimanded and ordered to pay £10,000 costs. One allegation was withdrawn and allegation (viii) against the Second Respondent was left on file.

Duties found breached:

• No improper communication with the court
• No conflict between current clients
• No improper use of client money
• Diligence and timeliness

Aggravating factors:

• Cavalier attitude to stewardship of clients' funds
• Minimum cash shortage of at least £179,258.55
• Systematic use of client money without proper written authority
• Continued denial of conflict of interest

Mitigating factors:

• Second Respondent had no direct involvement in the misconduct and had set up accounting systems including an experienced bookkeeper
• Second Respondent did everything he could to put matters right and ensure no client lost money
• Both Respondents bankrupt and suffered severe financial/professional loss
• No dishonesty alleged against Second Respondent