By Lucy Caulkett-
A solicitor of 47 years has been struck off and fined £17,250 in costs after transferring client money to the office account to inflate his firm’s bank balance.
Raymond Lawrence Toms, a sole practitioner with Plymouth firm Goldbergs Solicitors was fined after admitting seeking to disguise the transfers by cancelling, delaying or failing to send cheques.
The investigation conducted by the Solicitors Disciplinary Tribunal concluded that between 1 March 2015 and 31 October 2018, he made and/or authorised improper transfers from the Firm’s client account to the office account in respect of any or all of the client matters referred to in Schedule.
Mr.Toms was found to have committed multiple breaches, including failing to comply with the account rules to run his business in accordance with proper governance and sound financial and risk management principles by failing to keep client money safe; and/or failing to remedy breaches; and/or failing to send bills to clients; and/or withdrawing monies from the client account when unauthorised to do so.
Overcharging Clients
Toms was said to have admitted overcharging clients and failing to pay disbursements to third parties within a reasonable time or even at all. Tom also sought to disguise the improper transfers referred to at paragraph 1.1 above by cancelling, delaying or failing to send cheques in respect of any or all of a number of clients. In doing so, he breached his duty.
The shamed solicitor also failed to pay is disbursements owed to third parties within a reasonable time. Mr. Toms was guilty of acts of dishonesty which were ‘numerous and repeated’, using funds to which he had no right to aid his own cash flow and financial positions, and to cover up previous transfers.
The breaches were described as being ‘serious, systemic and calculated acts’ committed over an extended period to the detriment of clients, estates and beneficiaries, including charities and vulnerable people.
The issue arose after a fee earner at the firm became concerned about Toms’ conduct and reported it in 2015. The firm closed three years later. This whistle blower told the SRA it was the ‘culture’ of the firm to make office account payments.
He explained that cheques were drawn but not sent to the recipient within two working days. The cheques were then cancelled and marked on the ledger as being lost in the post.
Funds were used to ‘ease cashflow’ and pay counsel fees, expert fees, ATE insurance premiums and stamp duty land tax. It was reported that Toms had an outstanding liability to HM Revenue & Customs and frequently failed to pay salaries.
Improper Transfers
Bank statements assessed by the SRA found improper transfers in eight matters causing a minimum client account shortage of £326,000. It was found in one case that the value of work done and billed was around £15,000, but the client ledger showed that 18 bills were raised on the matter coming to more than £45,000.
A junior solicitor formerly with the firm told the SRA the position on probate matters was not to pay monies out to beneficiaries until 10 months after the probate was granted.