Ex Wolstenholmes bosses banned over fraud
SEVEN former members of long-standing Manchester law firm Wolstenholmes have been disqualified from being directors for trading fraudulently and failing to keep proper books and records.
The scandal at the firm emerged in 2009 when clients complained about its conveyancing department.
The Solicitors Regulation Authority conducted an investigation which found significant and serious accounting irregularities and that non-solicitor third parties had inappropriate control and influence over the activities of the company.
This led to an intervention and closure of the practice in December 2009. Wolstonholmes was formally put into administration in February 2010.
As a result of the company’s actions and the shortfall on its clients account, the Solicitors Compensation Fund has paid out has paid out more than £13m relating to more than 2,500 former clients’ claims.
Sentencing Mr Saddique and Mr Cardinali, who were unqualified, Judge Bird said: “The defendants involved themselves in a business in which members of the public are entitled to place absolute trust. That trust was abused at great cost to members of the public and at great cost to the Solicitors Regulation Authority and to the Solicitors Compensation Fund.
“Fraud of the kind which was rife under their management in my judgment justifies a disqualification period of the maximum that the law allows, that is the period of 15 years.”
The latest disqualifications range from five to the maximum 15 years and follow an investigation managed by the Insolvency Service. Four members of the company, founded in 1818, had been banned as directors in 2012 and 2013 (one in 2012 and three in 2013).
Two of the latest disqualifications followed court orders in the Manchester District Registry and in other instances, the officers gave undertakings to the Secretary of State for Business, Innovation & Skills not be involved in the management of a limited company for the duration of their bans.
The details of the bans are as follows:
Nasir Ilyas – undertaking accepted for 15 years on June 6 2014;
Waseem Saddique – disqualified by court order on June 10 2014 for 15 years;
Mario Cardinali – disqualified by court order on 10 June 2014 for 15 years;
Imran Hussain – undertaking accepted for 9 years on 4 June 2013;
Bilal Khawaja – undertaking accepted for 6 years on 13 June 2013;
Helen Murgatroyd – undertaking accepted for 5 years on 24 February 2012;
Mr Shabbir – undertaking accepted for 5 years on 24 January 2013;
The investigation followed a probe by the Solicitors Regulation Authority which brought proceedings before the Solicitors Disciplinary Tribunal.
Former managing partner Imran Hussain and Asma Qayum, practice manager at the firm’s office in Heald Green were struck off while Bilal Khawaja and Helen Murgatroyd were suspended for one and two years respectively. The case against Nasir Ilyas was adjourned and is due to be heard next month.
The SRA has previously made orders against Waseem Saddique, Mario Cardinali, Mohammed Kazi and Iftab Hussain. None of them can be employed or remunerated in connection with a solicitor’s practice without the permission of the SRA.
