SDT: Authority undermined by failure to comply
A solicitor who failed to comply with an order made by the Solicitors Disciplinary Tribunal (SDT) in 2020 has now been suspended for a year.
However, the suspension will itself be suspended for two years if Paul Michael Ireland – who has repeatedly breached the SRA accounts rules – complies with a range of conditions, including that he stops holding client money.
Mr Ireland, who qualified in 2000, operates as a sole practitioner in Warrington under the name Paul Ireland Solicitors.
In 2020, the SDT fined him £10,000 after he admitted to a catalogue of accounts-related errors. However, he did not pay the fine, which goes to HM Treasury, until the SRA reminded him in November 2023 – it was accepted that letters from the Treasury were sent to the wrong address – and he did not comply with the SDT’s order to file an accountant’s report every six months.
These failures triggered another SRA investigation in 2022, which identified a £39,000 shortage on client account – part of which was outstanding from the earlier investigation – and continued accounts rules breaches.
The regulator found seven transfers totalling nearly £7,500 from client account to office account in a divorce matter where the client had not been billed. Mr Ireland said costs had been discussed with the client and blamed his lack of understanding of the accounts rules for what he had done.
The client had not complained about the costs but Mr Ireland apologised, provided a detailed breakdown of the costs and reimbursed her £1,745 after recalculating them. He paid her an additional £2,000 in recognition of the inconvenience caused.
In a statement of agreed facts and outcome with the SRA, Mr Ireland admitted not complying with the 2020 SDT order, allowing a shortage on client account, taking costs without bills and, as his firm’s compliance officer, failing to ensure its compliance with the order and SRA rules.
In mitigation, which the SRA did not endorse, Mr Ireland apologised, said he had fully co-operated with the SRA and taken steps to address the failings and “ensure that they do not recur”.
In approving the recommended outcome, the SDT said Mr Ireland’s repeated breaches the accounts rules “had caused harm not only to Client A but to the reputation of the profession”, while the failure to comply with its earlier order “had the potential of undermining the authority of the tribunal and diminishing public trust and confidence in the profession”.
It concluded that Mr Ireland “did not appear to have gained any insight into his conduct, nor had he attempted to refresh or improve his knowledge of the SRA account rules to avoid future breaches”. This meant a fine or reprimand would not be a strong enough sanction.
Mr Ireland was suspended for a year, but this would be suspended for two years subject to him complying with conditions imposed for an indefinite period.
These prevent him from holding a compliance officer role, and require him to close all of the firm’s client accounts within two months and file accountant’s reports as necessary.
Mr Ireland also agreed to pay the SRA costs of £27,000.
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