A solicitor previously responsible for all compliance roles at an alternative business structure (ABS) has been officially rebuked following a series of significant failures.
The Solicitors Regulation Authority (SRA) determined that Chukwuemeka Mmegwa was “,unsuitable for a managerial, supervisory or compliance role,” placing restrictions on his future practice. This decision was outlined in a regulatory settlement agreement, underscoring the severity of his shortcomings in fulfilling his duties.
Mr Mmegwa, who qualified as a solicitor in 2017, was employed by Virgo Consultancy Services from July 2014 to March 2023. The ABS, linked to the Virgo People talent agency, offered services including visas for performers and sportspeople. The firm, based in Wales and London, was owned by ‘Mrs A’, yet Mr Mmegwa served as a director from May 2019. Operations ceased on 31 March 2023, reflecting the culmination of compliance issues that led to the SRA shutting down the firm in December 2023.
Mr Mmegwa held numerous roles, ranging from head of legal practice to anti-money laundering officer and complaints handler. However, a forensic investigation was initiated following a report by Mrs A in November 2021, which implicated a former employee in misleading clients regarding case progress. This prompted the SRA to probe deeper, uncovering extensive breaches of accounts rules.
The investigation revealed Mr Mmegwa’s repeated failure to supply necessary documentation, leading to difficulties in assessing whether client accounts were adequately funded to meet liabilities. Despite reminders of his responsibilities, Mr Mmegwa provided unclear information and conflicting accounts regarding financial reconciliations. Furthermore, he did not produce requested documents promptly, deflecting accountability onto colleagues.
Even after the issuance of a statutory production notice, Mr Mmegwa failed to submit qualified accountant’s reports outlining significant rule breaches and client account deficiencies. Additionally, his mishandling of four client complaints prompted criticism from the Legal Ombudsman.
Acknowledging his misconduct, Mr Mmegwa admitted to being reckless with regard to his regulatory obligations. The SRA considered his mitigating circumstances, including staff shortages, resource limitations, and the negative impact of a colleague’s actions, alongside the challenges posed by the pandemic. While others, notably Mrs A, bore some responsibility, Mr Mmegwa’s roles as head of legal practice and head of finance and administration marked him as chiefly accountable.
Though not impacting his honesty or integrity regarding non-managerial duties, the SRA deemed a written rebuke appropriate. Mr Mmegwa’s current role lacks supervisory functions, and conditions imposed on his practising certificate, prohibiting him from being a sole practitioner, partner, or compliance officer, aim to reduce future risks.
The SRA’s decisive action against Mr Mmegwa highlights the critical importance of compliance and accountability in legal practice. By restricting his future roles, the authority seeks to minimise potential risks, ensuring stringent adherence to regulatory standards.
