Kenneth Hunt & Barbara Gayton

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

Two partners of Hunt Kidd Law Firm LLP in Newcastle upon Tyne were found to have caused a cash shortage exceeding £1 million on client account through improper transfers to office account to meet liabilities, pay salaries and benefit associated businesses. Both were convicted of fraud by abuse of position (First Respondent sentenced to 4 years, Second Respondent to 2 years imprisonment). The Tribunal found all allegations proved, including dishonesty under the Twinsectra test for both Respondents, and struck both off the Roll. Costs of £25,000 were apportioned £20,000 to the First Respondent (more culpable) and £5,000 to the Second Respondent, not to be enforced without leave of the Tribunal.

Duties found breached:

• No taking unfair advantage
• No conflict between current clients
• No improper use of client money
• Diligence and timeliness
• Not misrepresent regulated status

Aggravating factors:

• Abuse of trust
• Sustained course of conduct over approximately one year
• Cash shortage on client account exceeding £1 million (£1,049,103.66)
• Misuse of client funds resulting in criminal conviction and imprisonment
• Indemnity funds/Compensation Fund left to meet the financial liabilities

Mitigating factors:

• Both Respondents admitted all allegations including dishonesty
• Full and voluntary disclosure to SRA investigators with complete records maintained
• No previous disciplinary matters
• Motivation to keep the firm afloat and retain staff jobs rather than purely personal gain
• Second Respondent did not instigate the fraud and acted out of misguided loyalty (per sentencing judge)
• First Respondent had intended transfers as short-term measure expecting to repay from personal wealth