In a significant ruling, a solicitor has been suspended for permitting an unqualified “friend” to manage a law firm, highlighting potential oversight failures within the legal profession.
David Durkin-Finch, who held roles as solicitor, sole director, and compliance officer of a law firm operating under the name Cleverson Solicitors, has been suspended for two years. This decision by the Solicitors Disciplinary Tribunal (SDT) came after Mr Durkin-Finch admitted to allowing Matthew Waterfield, an unadmitted acquaintance, to run the firm despite Waterfield’s history of leading a firm into administration.
The SDT’s ruling indicates a failure in professional judgement and oversight, as it was determined that no reasonable solicitor in Mr Durkin-Finch’s position would have allowed such a situation. Despite recognising that allowing Waterfield to run a regulated firm could pose significant risks, Mr Durkin-Finch continued to permit him to operate without restriction.
Waterfield, who was previously the sole director of Centenary Law, had a track record of financial instability, with the firm collapsing in 2019 amidst significant outstanding work. Nevertheless, when Jacqueline Tanner, Waterfield’s mother and a director at Tomini Legal Consultancy, appointed Mr Durkin-Finch to purchase Cleverson for £7,500 as a nominee director and shareholder, the firm began operations in late 2019, with Waterfield and Tanner providing consultancy services.
The structure of the firm was such that Mr Durkin-Finch would oversee compliance while Waterfield managed day-to-day operations. However, Mr Durkin-Finch did not receive monetary compensation but instead was promised assistance in developing his own firm’s marketing.
Events unfolded unfavourably when in July 2021, Waterfield became directly involved in conveyancing, leading to the firm’s bank accounts being suspended due to suspicious transactions. Mr Durkin-Finch’s subsequent inability to access critical business information from Waterfield led to the termination of their agreement and a report to the Solicitors Regulation Authority (SRA).
The fallout from these decisions included Cleverson’s closure and voluntary liquidation in early 2022, alongside Encore Legal, Mr Durkin-Finch’s firm. Financial mismanagement was evident as TLC billed Cleverson substantial fees authorised by Waterfield. Furthermore, Mr Durkin-Finch faced allegations of conducting unsupervised conveyancing transactions and not maintaining financial integrity, such as failing to reconcile client accounts and neglecting VAT liabilities.
In defence, Mr Durkin-Finch stated his relationship with Waterfield was based on trust, acknowledging serious errors in judgment. Importantly, he noted that while financial irregularities were present, clients suffered no direct financial loss aside from tax liabilities to HMRC.
The SDT acknowledged Mr Durkin-Finch’s lack of intentional harm and insight into his failures, yet emphasised that his actions were reckless and could have warranted a more severe penalty. Therefore, the decision to suspend him for two years was balanced with conditions restricting future practice roles, ensuring no recurrence of such oversight.
The suspension of Mr Durkin-Finch serves as a stern reminder of the importance of adherence to regulatory responsibilities within the legal profession. Despite the lack of client harm, oversight and integrity remain paramount in legal conduct to prevent potential risks and uphold the trust placed in legal practitioners.
