A former partner with a London firm transferred ownership of his late client’s £1m home within five months of her death, a tribunal heard today. James Allie, formerly with now-closed Hackney firm Spence & Horne, also moved more than £820,000 from his client’s estate into his personal bank account.
The Solicitors Disciplinary Tribunal heard that Allie, who was the executor of the will, used the cash to buy a flat worth £586,000, which he moved into after being evicted from his own home.
The solicitor was found to have acted dishonestly and was struck off the roll, as well as being ordered to pay £25,000 costs.
Allie, who was not present or represented at the hearing, had claimed in correspondence with the Solicitors Regulation Authority that he wanted to increase the value of the client’s estate by converting her home into flats and by using her money to invest in more property.
Andrew Bullock, for the SRA, said Allie’s explanation made ‘precious little sense and is in reality a pack of lies’. Bullock added: ‘This is in reality an exercise done entirely for his own benefit, not for the benefit of the trust and the story of this all being about maximising value to the estate is something he comes up with when his actions are discovered.’
The tribunal heard that Allie, 52, had been a solicitor for four years when he became a partner in the firm in 2014.
His client died in June 2016 and by November 2016 – before probate had been granted – he had transferred her Brent home to his name. The bank transfers occurred two months later.
None of the residual beneficiaries of the estate, including an education charity that stood to receive the biggest amount, was informed of what Allie was doing.
Litigation ensued in the High Court involving Allie, the firm’s sole equity partner and the charity.
His actions were reported by the firm after issues were raised about monies being diverted to Allie’s personal account on 25 other matters. He faced separate allegations of misappropriation after admitting that he opened a separate bank account with the firm's name and arranged for fees to be paid into this account and effectively to him. Allie had claimed this arrangement was to pay him back for expenses and disbursements he had covered from his own money, but Bullock submitted such a practice was not allowed and that the explanation was 'bizarre'.
Opening the SRA’s case, Bullock told the tribunal members: ‘You will have come across instances of quite sophisticated frauds perpetrated by solicitors moving money around and running sham ledgers. Mr Allie took client money and the client’s estate and put them into his name. It really is very much as simple as that.’
Allie denied dishonesty and acting without integrity.
