The liquidator of Public Interest Lawyers (PIL) is preparing to distribute payments to creditors following the admission of guilt by the former solicitor Phil Shiner.
Phil Shiner, a once respected solicitor, recently admitted to three counts of fraud concerning legal aid applications related to claims against British soldiers. These claims involved alleged mistreatment of Iraqi detainees, further tarnishing Shiner’s reputation.
Originally appointed in 2017, PKF Littlejohn Advisory, the liquidator for PIL, announced that it can now commence the process of compensating creditors, which include various government departments. Director Stratford Hamilton indicated that Shiner’s guilty plea confirms the irrecoverability of any funds from the Legal Aid Agency that might otherwise have been claimed by PIL.
Hamilton stated, ‘We issued a claim into the bankruptcy estate of Phillip Shiner in terms of his actions in causing this loss to the company.’ Shiner’s bankruptcy, which extended for six years, involved transferring nearly £500,000 worth of assets to family members before declaring himself insolvent.
Up to now, PKF has recovered over £2.2 million, including £1 million from government departments and third-party recoveries. PIL currently has estimated unsecured creditors totalling £6.1 million, but there are no secured or preferential creditors. Among payments made, £416,000 has been allocated for priority creditor counsel’s fees.
The liquidator has been cautious, issuing no notice of intended dividend until all potential recoveries from the Legal Aid Agency or Government Legal Departments have been settled to ensure the accuracy of counsel’s claims.
To date, PKF’s fees have amounted to £316,500 from an estimated total of £404,000, while Devonshires solicitors and NWL Costs Lawyers have also incurred significative fees of £190,000 and £130,000, respectively.
Hamilton also added, ‘The government is not the only victim of Mr Shiner’s fraud, and we will continue to work closely with creditors in what is an incredibly complex and long-running saga.’
The unfolding of Phil Shiner’s legal saga marks a significant step in addressing the financial implications of his fraudulent activities, bringing some measure of resolution as creditors await their due payments.
