Collapsed law firm at centre of £39.5m fraud probe

A law firm that abruptly ceased operations is under scrutiny for a “sophisticated suspected fraud” linked to the “improper removal and misuse” of £39.5m in client funds, according to a regulatory body. Based in Sheffield, PM Law Ltd operated 25 offices across Yorkshire, Cumbria, Berkshire, Derbyshire, and London before shutting down on 2 February. The sudden closure left hundreds unemployed and disrupted tens of thousands of legal cases.

SRA intervention and compensation efforts

The Solicitors Regulation Authority (SRA), which stepped in after the firm’s collapse, reported that over £21m in claims had been submitted to its compensation fund. The BBC has attempted to reach PM Law Ltd, which entered voluntary liquidation on 3 March, but has yet to receive a response. The PM Law group included 11 companies, 25 offices, and more than 30 trading names, such as Proddow Mackay, Butterworths Solicitors, and WB Pennine Solicitors.

Paul Hastings, the SRA’s director of client protection, stated: “We are continuing to do all we can to support former clients of PM Law, including by reuniting them with their money or files.” He added, “Many of the former clients faced significant upheaval at a stressful time, so we have been determined to provide as much support as possible.”

As of 17 April, 92 claims amounting to £9.31m had been settled from the SRA Compensation Fund. An additional £6.8m was distributed from funds retained by the firm at the time of the SRA’s involvement, and 9,300 files were returned to clients. Those affected by the closure described challenges such as jeopardized property transactions and lost deposits, while staff were surprised by their job loss, notified through a message in the company’s windows.

Report Fraud, a national service managed by City of London Police, noted it was aware of the fraud allegations tied to PM Law. At the time, a spokesperson for the service confirmed it had “received reports in connection to these allegations” and was coordinating with the SRA. Further information on client support measures can be found on the SRA’s official website.