PM Law Collapse Raises Alarm Over Client Funds

Regulators are investigating potential fraud following the sudden closure of PM Law, a high-street law firm that left numerous clients and staff in uncertainty. Reports indicate that at least £1 million in client funds is believed to be missing after the firm ceased operations earlier this month.

The Solicitors Regulation Authority has confirmed it is probing the circumstances surrounding PM Law’s abrupt closure, which impacted more than 600 employees across 24 branches from Yorkshire to Kent. There is a strong public interest in this case, given the significant implications for clients who are now at risk of losing their investments.

According to Jonathan Peddie, an executive director at the SRA, the situation involves complex issues surrounding the potential misappropriation of client funds. The regulator is focused on determining the facts of the case and identifying responsible parties, with intentions to take appropriate legal action.

In the days following the closure, a Facebook group created for former clients has been filled with complaints about ongoing legal transactions, particularly regarding property purchases. Many individuals reported that their residential conveyancing deals are now at risk of falling through without clarity on the status of their transactions.

The SRA has appointed another law firm, Gordons, to oversee the closure and secure client files, but Gordons will not represent former PM Law clients in this case. Over 80 claims have already been filed with the solicitors’ compensation fund as clients seek to recover missing funds.

The regulator is prioritising urgent applications and has granted several emergency funds to clients who were on the verge of finalising property transactions. The recent collapse of PM Law has ignited criticism of the SRA, which has faced scrutiny for its handling of prior law firm failures.