Finance chief at PM Law in Sheffield banned over withdrawals and fabrications in £39m suspected fraud
The law firm closed without warning
The head of finance at a Sheffield law firm hit by a £39m suspected fraud has been banned over withdrawals “that led to a client account shortage.”
Jonathan Bostock, of PM Law, was also found to have ‘fabricated bank balances’ and provided ‘false documents’, following an investigation by the Solicitors Regulation Authority.
The SRA has now barred him from working for law firms in England and Wales, it’s harshest sanction for a non-solicitor.
It also says investigations are ongoing.
South Yorkshire Police are also looking into potential fraud at the firm.
PM Law, of Shepcote Lane, Tinsley, closed without warning in March.
It was an umbrella for 11 firms with 25 offices employing 750.
In April, the SRA said £39.5m of clients’ money had been lost in a ‘sophisticated suspected fraud’ affecting more than 25,000 people.
And it was one of the largest cases it has ever undertaken.
Now, the SRA has found that Jonathon Bostock:
- Caused, or allowed to be caused, withdrawals from PM Law client accounts which led to a client account shortage
- Fabricated bank balances on several accounts and used them to misrepresent the firm’s financial position
- Provided the SRA with documents and information which he knew or ought to have known to be false and misleading
- Failed to report to the SRA that PM Law was experiencing serious financial difficulty
In a statement, the SRA said: “Mr Bostock exercised senior managerial control and financial authority across the firm, including oversight of its financial controls.
“He led the firm's accounts team and reported to Donald Mackay, solicitor, owner and chairman of the firm.”
It added: “Mr Bostock's conduct breached relevant duties that applied to him as manager and head of finance and administration at the firm.”
The SRA previously said the collapse of the firm led to the collapse of home sales, people losing deposits and delayed probate payouts.
A South Yorkshire Police spokesperson said they were investigating.
They added: “We can confirm we received an initial referral from Report Fraud in relation to Sheffield based law firm PM Law.
“We are liaising with the Solicitors Regulation Authority, which is currently investigating the matter.
“This is currently under review by our Economic Crime unit to determine next steps and the most appropriate agency to take this forward.”
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