A solicitor has been fined £15,000 by the Solicitors Disciplinary Tribunal after failing to identify clear indicators of fraud in loan transactions totalling £464,000.
The Case
Paul Edmund Levy, admitted in 1999, was working at international firm Singhania & Co between September and December 2019 when he acted on two suspect loan transactions:
- First transaction (£199,000): Solicitors acting for the client changed without explanation mid-transaction. Levy sent loan funds to a trust corporation and individuals rather than to a solicitor’s client account as required by the facility agreement.
- Second transaction (£265,000): The solicitors ostensibly representing the client were imposters. Levy sent the loan money to a company that wasn’t the borrower and again failed to use a solicitor’s client account.
The Tribunal’s View
The SDT stated that Levy’s failings “effectively facilitated transactions that bore hallmarks of fraud and/or money laundering” and that his lack of care and attention would “undermine the trust and confidence that the public would place in a solicitor.”
Mitigation
Levy argued that:
- His clients suffered no financial loss as charges were registered against properties
- Clients were protected by professional indemnity insurance
- The frauds were “sophisticated”
- He had taken active verification steps including visiting the property and securing insurance before completion
The SRA withdrew an allegation of manifest incompetence, accepting there was not a “complete abdication of responsibility.”
Penalties
- £15,000 fine
- £35,386.90 in costs
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