Richard Harbord, a solicitor with a history of disciplinary issues, recently faced scrutiny from the Solicitors Disciplinary Tribunal (SDT) after it was revealed that he had used his firm’s client account as a personal banking facility. The tribunal found that Harbord acted without integrity, although his actions were considered a technical breach of the rules, posing no risk of money laundering.
Richard Harbord, based in Surrey and qualified as a solicitor since 2002, has faced various compliance challenges throughout his career. As the owner of Harbord & Co and a partner at McGlinchey & Co, Harbord held crucial compliance roles. However, his financial management practices came under suspicion when proceeds from the sale of his matrimonial home and office premises were held in the client account. Substantial amounts were transferred to his personal account, totalling £386,641, alongside loans amounting to £315,970 to the two firms involved.
The SDT concluded that Harbord’s actions amounted to a technical breach of the accounting rules, as there was no indication of money laundering. Despite his carelessness in handling the accounts, Harbord maintained that he would have been more cautious if client funds were involved. He acknowledged that he should have verified the rules more thoroughly instead of relying on advice from a firm’s accountant and a fellow partner.
Further complicating his situation, Harbord failed to cooperate with the Solicitors Regulation Authority (SRA) for an extended period, particularly concerning missing accountant reports from 2020. His lack of action, despite numerous opportunities to rectify the situation, was noted by the SDT as a sign of acting without integrity, even if the reports might not have been qualified.
Harbord’s regulatory history is marked by previous reprimands and warnings. In 2003, he was severely reprimanded for possessing cocaine, and in 2012, the SRA issued a warning for account rule breaches. In 2017, he faced a fine for neglecting to disclose a personal relationship with a client during family law proceedings.
Mitigating factors in Harbord’s defence included ongoing health issues since 2017, impacting his ability to work and manage his finances effectively. These health problems contributed to his financial difficulties, culminating in bankruptcy. Despite these challenges, Harbord expressed improved health over the past year and demonstrated cooperation with the SRA during this time.
As a result of these findings, the SDT imposed a fine of £8,500 on Harbord and ordered him to pay costs totalling £40,000. They agreed not to enforce the financial penalties immediately due to uncertainties regarding his financial situation. Harbord intends to continue practising with conditions on his certificate and is seeking employment as his firms close.
The case of Richard Harbord highlights significant issues within the legal profession concerning compliance and integrity. While his financial difficulties and health issues provided some context for his actions, the SDT emphasised the importance of maintaining strict adherence to regulatory standards to preserve public confidence. Harbord’s admission of misconduct and his willingness to address the issues were acknowledged, yet the tribunal’s decision reinforces the necessity for solicitors to act with integrity at all times.
