A solicitor has been suspended for a year by the Solicitors Disciplinary Tribunal (SDT) due to his involvement in advance fee frauds, influenced heavily by his work with a convicted fraudster.
The tribunal found that Simon Paget-Brown, a solicitor who qualified in 2000 and practised at a London firm that has since closed, failed to alert suspicions around advance fee fraud. He acted recklessly by participating in transactions that showed characteristics of such frauds, admitting his own-interest conflict while working for Wraith Capital and Wraith Capital Group, which he also directed.
Winston Donaldson, one of his associates at Wraith and a convicted fraudster, was central to the operations that involved advance fee fraud related to loan facilities, leading to a four-and-a-half-year jail sentence in 2014. Despite Donaldson’s criminality being a mitigating factor in Paget-Brown’s misconduct, the Tribunal concluded Paget-Brown was aware of his partner’s criminal past.
During his practice, Paget-Brown also allowed his firm’s client account to be used as a banking facility, with a reported £2m passing through without evidence of underlying transactions. Additionally, he admitted to failing in maintaining proper accounting records, having current client ledgers but not documenting individual cases separately.
An undertaking given by Paget-Brown during his representation of a client involved in bridging finance further complicated his case. When the client defaulted, he committed to paying the lender £200,000. However, this obligation was only partially fulfilled in May 2018 with complete settlement delayed until October 2020.
In his defence, Paget-Brown argued the absence of personal dishonesty, attributing the financial conflicts to Donaldson’s fraudulent actions. He also claimed his efforts to fulfil undertakings were sincere, albeit delayed, leading to significant personal financial loss.
The SDT, acknowledging his admitted misconduct came just before the hearing, noted that such delayed realisations of wrongdoing required protection of the public and the legal profession’s reputation. Therefore, Paget-Brown has been suspended for 12 months, with restrictions upon his return to practice. He will not be allowed to practice as a sole practitioner or hold certain positions without the Solicitors Regulation Authority’s permission.
The tribunal’s decision underscores the legal profession’s commitment to uphold integrity, ensuring those who fall short of required standards face significant repercussions.
