Costly shutdown of Axiom Ince by SRA

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Axiom Ince has been shut down by the Solicitors Regulation Authority (SRA) following allegations of financial misappropriation – a closure that could end up being the most expensive SRA intervention in history.

The SRA states the firm, which recently bought Plexus Legal and Ince & Co, had to be closed in order to protect the interest of the clients. Client files have been collected from the 14 offices across the country to be transferred to their next lawyer, according to the Law Gazette. Andrew Pavlovic, a partner with London firm CM Murray, has commented that, as well as the high cost of the intervention itself, there is “potential for significant claims on the SRA’s compensation fund, given the size of the client account shortfall”.

The SRA has announced that it’ll take control of all documents and money owned by the firm, including client money. Appointed agents (ie, other solicitor firms) will then “assess all on-going matters and deal with those of greatest need first”.

Axiom Ince’s full closure comes after the SRA initially suspended the individual practices of directors Pragnesh Modhwadia, Idnan Liaqat and Shyam Mistry in August. Now the business as a whole is shut down, it’s understood that the remaining staff will be made redundant.

Gordons LLP has been appointed to handle the former Axiom DWFM offices, while Shakespeare Martineau LLP, Stephensons and Lester Aldridge LLP are handling, respectively, former Ince & Co offices, Plexus Legal (North) and Plexus Legal (South).