By Gabriel Princewill-
A law firm partner described by a judge as actively dishonest for showing a ‘complete disregard for his professional obligations’ to check the source of funds assisted the misappropriation of £2.4 million, a judge has found. The shocking revelation highlight the depth of deceit and corruption that occurs in one of the most prestigious professions in the world.
In a total dereliction of duty, the presiding High Court judge found London firm Portner Law Limited to be vicariously liable for the actions of Daniel Broughton.
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Grosvenor Property Developers, was proven to have converted a former hotel in Bristol into student accommodation, before raising funds from investors, yet went into liquidation without taking any steps to acquire or convert the building.
The Law Society’s Gazette publication reported that its director, Jonathan England and its de facto director, Sanjiv Varma, was found liable in other proceedings for the misappropriation of approximately £7m. Varma has also been found in contempt of court and has left the country.
Portner was instructed to act by Varma and his son in relation to London property transactions involving sums amounting to £2,399,000.
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She added: ‘Mr Broughton was a clear and coherent witness and accepted, with hindsight, that he had not always acted in accordance with his professional obligations.’ Broughton was prepared in dealing with the lender on one property to ‘make statements that were not true,’ the judgment stated. ‘That is not the conduct of an honest solicitor.’
The judge statement that Mr Broughton’s interactions with the Varmas show a pattern of disregard for his obligations as a solicitor, and repeated turning of a blind eye to obvious causes for concern underscored the level of deceit conducted by the solicitor who brought his firm and profession to disrepute.
The judge found the solicitor made false representations concerning matters that were within his knowledge.’ This judicial finding carries severe implications for the solicitor’s career and represents a serious breach of the Solicitors Regulation Authority (SRA) principles, which govern the conduct of all legal professionals in England and Wales
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Steven Taylor, the managing partner at Judge & Priestley, acknowledged the seriousness of the court’s findings.
