denotes premium content | Sep 2 2010 
News
posted 24 Jun 2009
Law firms to receive fraud warnings
THE SOLICITORS Regulation Authority (SRA) is issuing ‘warning cards’ to 11,000 law firms in England and Wales, alerting them to four potential compliance concerns.
The warning cards, which are also available at the SRA website, focus on helping firms to avoid inadvertently becoming involved in fraudulent activity − specifically in property fraud, undertakings, money laundering and general fraudulent financial affairs.
SRA chief executive Anthony Townsend said: “The danger of improper financial arrangements is higher in the current market conditions when solicitors and their clients are facing particular pressures.
“Even the most conscientious of solicitors may become unwittingly involved in supporting fraudulent activity if they do not take care. The cards should help solicitors to identify signs of improper activity, and take the necessary action.”
The SRA’s figures show that the reports of mortgage fraud it has processed have risen from 215 in 2006 to 350 in 2008, while in the year to April 2009 the regulator’s Forensic Investigation Unit has visited over 100 law firms where the major findings were transgressions relating to property.
Other typical frauds on the rise include misleading publicity and “traditional financial misconduct”, such as failing to account correctly.
In other news, the SRA has announced the 16 firms appointed to its Disciplinary Proceedings Panel, which replaces the previous system of choosing a panel of individuals.
The firms include Field Fisher Waterhouse LLP, Morgan Cole, Blake Lapthorn, Russell-Cooke LLP, Finers Stephens Innocent LLP and Bevan Brittan. A total of 47 firms submitted a formal tender for the work in November 2008.
