Bookkeeper banned over ‘dishonest’ £93,000 transfers

A bookkeeper has been banned from ever working for a solicitor’s practice again after she improperly transferred money causing a potential cash shortage of more than £93,000.

In a regulatory settlement published today, the Solicitors Regulation Authority said it received various reports Manchester firm's PMN Law’s ‘failure to settle professional disbursements from funds it was holding on behalf of its clients.’

The subsequent investigation found that Suzanne Smith, the firm’s bookkeeper who prepared invoices and managed payments, had repeatedly billed professional disbursements as the firm’s profit costs between April 2018 and July 2019.

She also improperly transferred money received for the payment of professional disbursements to the firm’s client account as profit costs.

The improper transfers resulted in a potential cash shortage totalling £93,259.22, which included a confirmed minimum cash shortage of £8,483.74.

Smith also annotated the bills with a handwritten note of the sums owed as disbursements and kept a ledger of the professional disbursements she had billed as profit costs.

She fully admitted the misconduct to the SRA and cooperated with the investigation.

Smith also admitted that her conduct in preparing bills that improperly included disbursements as profit costs and the improper transfers of money was dishonest.

A section 43 order was made by the SRA which means Smith cannot be employed by a solicitor or with a legal practice and will be required to pay the SRA’s £300 investigation costs.

The SRA said Smith had acted under the instruction of a senior colleague and received no financial benefit from her actions It added: ‘Smith’s conduct makes it undesirable for her to be involved in a legal practice because as her actions show she cannot be trusted to safeguard client money and involve dishonesty.’