Solicitors Regulation Authority warns solicitors to be on guard against fraudulent activity
28 May 2009
The Solicitors Regulation Authority (SRA) is issuing warning cards to firms throughout England and Wales to help them avoid becoming involved in fraudulent activity.
Within the next week 11,000 solicitors firms in England and Wales regulated by the SRA, will receive warning cards highlighting four areas of concern - property fraud, undertakings, fraudulent financial affairs and money laundering.
The SRA has received increasing numbers of reports of mortgage fraud over a three year period from 215 in 2006 to 350 in 2008. In the last four years up to April 2009, the SRA's Forensic Investigation Unit has investigated over 100 firms where the major findings were of rule breaches in relation to mortgages and property.
Other examples of fraud are evidenced by
- rising levels of reports of misleading publicity - indicating areas of "sharp practice" where firms are competing for dwindling business,
- rising levels of "traditional" financial misconduct such as failure to account.
SRA Chief Executive Antony 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 information on the cards is not intended to be exhaustive nor an authoritative guide to the profession's statutory duties, but has been designed to help solicitors be on their guard.
"As always, we are asking solicitors to remember their responsibilities in areas such as tipping off, legal professional privilege, duties of confidentiality and the circumstances when a suspicious activity report should be made to the Serious Organised Crime Agency (SOCA)."
Solicitors suspecting that someone who has approached them is involved with fraud are urged to contact the SRA's Fraud and Confidential Intelligence Bureau on 01926 439673 or 0845 850 0999 or email redalert@sra.org.uk.
The warning cards are available on the SRA's website - visit www.sra.org.uk/warningcards.