Fined £35k
A former law firm boss has been fined by the solicitors’ regulator after it he allowed nearly £14 million to be taken from the client account to buy jewellery, pay off credit card bills, and fund business investments.
Anthony David Kerman, a former director at Kerman & Co (which was later acquired by US outfit Armstrong Teasdale in 2021), acted for several companies under the same beneficial owner between 2019 and February 2021. During this time, he “requested and authorised” seven payments from the firm’s client account, amounting to approximately £1.1 million.
The Solicitors Regulation Authority (SRA) found that the payments were used for items such as jewellery and settling credit card bills. Although requested by the client, these payments were unrelated to any legal transaction.
Kerman also authorised an additional sixteen payments, totalling £12.7 million, to fund various investments and business expenses. These payments were requested by the client but had nothing to do with any matter Kerman was instructed on.
Kerman admitted his actions, and the SRA acknowledged that his conduct was not intentional or the result of recklessness or gross negligence.
The SRA notice also states that the solicitor “proceeded on a misunderstanding of the interpretation of the banking facility rule, and that he did not regard his client as high risk”.
He fully assisted and cooperated with the regulator’s investigation, with no harm caused to the client and no evidence of financial gain on his part.
He was fined £50,400, which was eventually reduced to £35,280 in consideration of his mitigating circumstances.
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