Director of Wakefield firm, Tyler Hoffman Ltd, fined £5008 by Solicitors Regulation Authority

Mr. Akef Mohammed Akbar, a director of Tyler Hoffman Ltd, has agreed to the following outcomes as part of the investigation into his conduct by the Solicitors Regulation Authority (SRA):

• Fine: £5,008
• Publication: Agreement to publish the outcome
• Investigation Costs: £600

Summary of Facts

The SRA commenced a Forensic Investigation at Tyler Hoffman Ltd in March 2023, initially prompted by a separate report regarding a fee earner at the Firm. During this inspection, several issues relating to the Firm’s accounts were discovered, detailed in the Forensic Investigation Report (FIR) dated 6 July 2023. Key issues included:

• A shortage on the client account caused by over transfers and overpayments.
• Failure to obtain accountants' reports.
• Failure to carry out three-way client account reconciliations.
• Inadequate maintenance of records of all receipts not classified as client money or bills of costs on the client ledgers.

Admissions

Mr. Akbar has made the following admissions, which the SRA has accepted:

1. Account Shortage: Between 28 October 2018 and 2 September 2022, he failed to prevent 30 over transfers and overpayments, leading to a client account shortage of £7,125.85, breaching Rule 5.3 of the SRA Accounts Rules 2018 and Paragraph 5.2 of the Code of Conduct for Firms 2019.

2. Accountants' Reports: Since October 2016, he failed to obtain accountants' reports, breaching Rules 1.2 (i) and 32.1 of the SRA Accounts Rules 2011 and Rule 12.1 of the SRA Accounts Rules 2019.

3. Client Account Reconciliations: From October 2016 to July 2023, he failed to conduct three-way client account reconciliations, breaching Rules 1.2 (e) and 29.12 of the SRA Accounts Rules 2011, Rules 8.1 and 8.3 of the SRA Accounts Rules 2019, and Paragraph 2.2 of the Code of Conduct for Firms 2019.

4. Record Maintenance: From October 2016 to July 2023, he failed to maintain records of all receipts not classified as client money or bills of costs, breaching Rules 1.2 (f), 29.2, 29.4, and 29.9 of the SRA Accounts Rules 2011, Rule 8.1 of the SRA Accounts Rules 2019, and Paragraph 2.2 of the Code of Conduct for Firms 2019.

5. Additional Breaches: He also admitted to breaching Rule 6.1 of the SRA Accounts Rules 2011 and Paragraphs 2.3, 9.1, and 9.2 of the Code of Conduct for Firms 2019.

Justification for the Fine

The SRA’s Enforcement Strategy considers the failure to meet standards and requirements. Mitigating factors considered include:

• Steps taken by Mr. Akbar to amend and update the Firm’s accounting procedures.
• Full cooperation with the investigation and timely provision of necessary information.
• No prior regulatory history, indicating a low risk of repetition.

The SRA deemed a fine appropriate due to Mr. Akbar’s reckless behavior and disregard for regulatory obligations, leading to a shortage on the Firm’s client account. A financial penalty maintains professional standards and public confidence in the solicitors' profession.

Calculation of the Fine

Based on the SRA’s guidance, the fine was calculated as follows:

• Nature and Impact: Misconduct was more serious due to recklessness and formed a pattern, with medium impact as the client account shortage was relatively low and promptly rectified.
• Basic Penalty: £8,480, reduced by 40% to £5,008 in light of mitigating factors.

Costs and Publication

Mr. Akbar agrees to pay the investigation costs of £600 and consents to the publication of this agreement to ensure transparency in the regulatory and disciplinary process. He also agrees not to deny the admissions made or act inconsistently with this agreement, as doing so could result in further disciplinary action or referral to the Solicitors Disciplinary Tribunal.