REG/39753-2008/JK1
Jonathan Michael Krestin
REGULATORY SETTLEMENT AGREEMENT
1. Jonathan Michael Krestin of London agrees to the following outcome in respect of his Practising Certificate for 2008/2009
Background
2. On 19 November 2008 Mr Krestin was found guilty by a jury of one count of facilitating the acquisition, retention, use or control of criminal property by or on behalf of another knowing or suspecting that the money was criminal property, contrary to Section 328(1) of the Proceeds of Crime Act 2001.
3. On 4 December 2008 Mr Krestin was sentenced and a financial penalty was imposed. In his sentencing remarks His Honour Judge McDowall made the following observation:-
"The final thing I should say is this. That I have already made it plain, I think, in the course of my sentencing remarks that, in my view, and it was my responsibility even though the jury returned the verdict on Count 4, which was capable of being returned on the basis of knowledge and suspicion, I think it would be wildly unreal to suggest that their finding was anything other than suspicion and I think, as I have said, that it is at the lower end of the scale in these matters and although it is, obviously, nonetheless, a criminal offence and in no way to be trivialised, I would very much hope that those who conduct disciplinary proceedings will find a resolution to the appropriate action or sanction against Mr Krestin other than the most drastic which would be available to them, because, to put it in very simple terms, I do not think that his professional life and career should be broken because of this single, however regrettable, lapse in the conduct of his affairs when, as his character witness is made plain, he has throughout his life been endeavouring to apply the law and was certainly not knowingly trying to break the law. I mean, insofar as I have made these remarks on record, they are obviously capable of being quoted, obviously, the disciplinary authority has to take its own course, but for what it is worth, I make that plain as my personal view in these matters."
4. On 1 May 2009 an Adjudicator of the SRA imposed conditions upon Mr Krestin's practising certificate as follows:-
1. He may act as a solicitor only in employment which has first been approved the Solicitors Regulation Authority.
2. He is not a member, office holder or shareholder of an incorporated solicitor's practice.
3. He is not a sole principal, partner or salaried partner of any solicitor's practice.
4. He is not a signatory to any client or office account and does not have the power to authorise electronic payments or transfers from any client or office account.
5. That he must not be the Money Laundering Reporting Officer for his firm.
6. Mr Krestin shall immediately inform any actual or prospective employer of these conditions and the reasons for their imposition.
5. On 14 August 2009 Mr Krestin applied to the High Court to appeal the decision of the Adjudicator in relation to the conditions set out above.
6. The SRA has carefully assessed Mr Krestin's grounds of appeal and all other relevant factors. In particular, the SRA considers that regulatory conditions should be imposed where they are necessary in the interests of the public and the reputation of the profession. They must not only be necessary but also reasonable and proportionate.
Settlement Agreement
7. It has been agreed between Mr Krestin and the SRA that the following conditions will be imposed upon his practising certificate until further notice:-
7.1 That Mr Krestin may act as a solicitor only in employment or partnership, or as a manager of a recognised body, the arrangements for which have first been approved by the SRA;
7.2 That the partnership and/or membership of Butcher Burns LLP as at 1 October 2009 is approved subject to a further condition that the practice notifies the SRA immediately in the event of the constitution of the firm changing – approval is renewable at the discretion of the SRA;
7.3 That Mr Krestin must inform any actual or prospective employer, partner, co-manager or co-owner of these conditions and the reason for them;
7.4 That Mr Krestin is not to act as Money Laundering Reporting Officer;
7.5 That Mr Krestin is not a person authorised to supervise pursuant to Rule 5 of the Solicitors Code of Conduct;
7.6 That Mr Krestin must inform the person who fulfils the function of MLRO of any client he acts for or intends to act for who is a foreign national, or a foreign or offshore business, company or financial institute and then obtain the MLRO's written consent to continue acting, or to act, such consent to be centrally and separately recorded, filed and produced to the SRA immediately upon request.
7.7 That in the event that Mr Krestin applies to renew his practising certificate after 31 October 2009 Mr Krestin attends a SRA accredited course on anti-money laundering within three months from the date of this Agreement and provides evidence to the SRA of such attendance within one month thereafter.
8. In the light of this Agreement the SRA has agreed to pay a contribution towards the costs of Mr Krestin's abandoned application to the High Court.
9. That the above conditions may be reconsidered by the SRA in the following circumstances:-
9.1 When the outcome of the disciplinary proceedings against Mr Krestin is known;
9.2 Should any further information be received by the SRA in relation to Mr Krestin which causes it to consider that the above conditions no longer represent a fair balance of the factors set out in Paragraph 6 above.
10. The date of this Agreement is 13 day of November 2009
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David J Middleton
Legal Director
For the Solicitors Regulation Authority
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Jonathan Michael Krestin.