Collapsed law firm at centre of £39.5m fraud probe
Summary
A large law firm called PM Law in Sheffield suddenly closed and is now under investigation for suspected fraud involving nearly £40 million of client money. The Solicitors Regulation Authority (SRA) is working to support affected clients and has paid out millions from a compensation fund.Key Facts
- PM Law had 25 offices across several UK regions and over 600 staff.
- The firm closed on 2 February, leaving many clients' legal cases impacted.
- The SRA estimates £39.5 million of client funds were misused or wrongly removed.
- More than £21 million in claims have been made to the SRA compensation fund so far.
- By 17 April, the SRA had paid £9.31 million to clients from the fund and £6.8 million from money found at the firm.
- About 9,300 client files were returned to their owners by the regulator.
- The investigation involves reviewing around 25,000 emails and letters and 17,000 inquiries.
- Police fraud reporting services are involved and collaborating with the SRA on the case.
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