A solicitor has been struck off by the Solicitors Disciplinary Tribunal (SDT) for the misuse of client funds to cover personal and professional costs, a decision that underscores significant breaches of fiduciary duty.
The tribunal’s decision centred around Martin Darren Rounthwaite, a sole practitioner who utilised client money to sustain his law firm’s operational expenses, including the salaries of family members employed therein. This action represented a clear violation of his professional obligations.
Mr Rounthwaite, admitted as a solicitor in 1999 and operating through Pro-Law Network from 2003 until 2020, faced serious allegations of financial mismanagement. The charges included the misuse of £72,000 received as interim payments in a personal injury case, where he falsely claimed that the funds were tied up in ongoing fictitious negotiations.
Further inquiry revealed that from August 2016 to September 2019, Mr Rounthwaite received client funds intended for costs and disbursements but failed to allocate them appropriately. Instead, these funds settled office expenses and familial salaries, leaving various service providers unpaid.
The SDT highlighted a ‘flagrant disregard’ for his duties, noting that the paper trail clearly demonstrated inappropriate diversion of client monies. This financial mismanagement left multiple agencies, including medical experts and barristers’ chambers, notably Chancery Lane Chambers and Liverpool City Law, without due payments.
Despite being aware of significant financial difficulties, Mr Rounthwaite failed to report these issues to the Solicitors Regulation Authority (SRA) or attempt a structured closure of his firm, eventually resulting in his bankruptcy and the firm’s closure in 2020. The solicitor’s lack of engagement with the tribunal further compounded his position as he offered no mitigation for his actions.
Ultimately, Martin Darren Rounthwaite’s actions resulted in his removal from the profession, highlighting the severe consequences of failing to meet the ethical and fiduciary responsibilities expected of legal practitioners.
