£86m of client money went through in-house solicitor’s personal account


SRA: Not in public interest to prosecute

An elderly in-house solicitor who handled reserved legal work without authorisation, and used his personal bank account to process £86m of client money, has agreed to leave the profession.

Hyam Lehrer, 83, struck the deal with the Solicitors Regulation Authority (SRA) in a regulatory settlement agreement published yesterday.

The regulator said it was not in the public interest to refer him to a disciplinary tribunal.

He had been acting for clients in the purchase of new-build apartments while an in-house solicitor for high-end central London estate agents Messila House.

The SRA said: “While Mr Lehrer did not negotiate or amend the draft contracts and leases, he did approve them on behalf of his clients. He signed the contracts on their behalf and effected their exchange.

“Mr Lehrer also confirmed to the vendor’s solicitors that he was instructed to register the leases.”

However, he was not authorised to undertake reserved instrument activities.

In August 2023, he admitted having carried out reserved legal activities since 2017 on around 25 matters, operating a client account and not having any insurance. In that period, he received £86m of client money into a personal bank account.

The SRA intervened in Mr Lehrer’s practice in April 2024. Mr Lehrer did not renew his practising certificate and “has stated throughout the investigation that he no longer wishes to practise”.

The regulator stressed that it found no evidence of dishonest conduct, misappropriation of client money, client loss or detriment.

The SRA took this into account in deciding on sanction, along with his early admissions of misconduct.

Given his age and illness – he has had a serious medical condition since 2017 – “it is not in the public interest to refer Mr Lehrer to the Solicitors Disciplinary Tribunal”, it concluded.

An undertaking to remove himself from the roll of solicitors sufficed; as he was not practising anymore, “he is no longer a risk to clients and the reputation of the profession”.




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