Solicitors have been consistently warned about how they should approach situations where they handle client funds in recent months. The SRA issued a Warning Notice at the start of August of the expectations of a solicitor and the dangers for the solicitor in handling client funds.
Additionally, a solicitor should know their role, responsibility and limitations. Unfortunately, in recent weeks a solicitor has been struck off for exploiting a vulnerable client whilst trying to help another desperate client the solicitor thought he could trust.
When a client (client 1) of over 10 years came to Neil Adrian Aiston in desperate need of money, Aiston’s 39 year career as a solicitor should have been enough insight to understand that accepting the request was out of his remit. However, feeling as though the repayment plan was trustworthy, he helped his client against his better judgement.
Client 1 was unable to pay back the money and it obviously left a huge deficit in the firm’s client account. Expecting an intervention from the firm and feeling desperate, Aiston sought help from another client; a vulnerable client.
Aiston had worked on behalf of client 3 for 35 years. The Solicitors Disciplinary Tribunal (SDT) found that in a moment of desperation, Aiston cajoled Client 3 into making an unsecured personal loan to client 1. However, the money was actually being transferred to the firm’s client accounts to cover the money that Aiston had loaned from other sources to client 1.
Client 3 informed the tribunal that Aiston was aware of his long battle with depression, mental health issues and cancer; using these to threaten and manipulate him into agreeing to the loan.
The Solicitors Disciplinary Tribunal stated: “[Mr Aiston] knew that he was in urgent need of funds as he was facing the prospect of an intervention. [He] has clearly considered that one way of achieving this was to ensure that Client 1 repay the monies that he owed…
“[His] conduct was about as dishonest as it could get. [He] had engineered this loan directly for his own benefit in an attempt to rectify the firm’s finances.
“[He] knew how much trust was placed in him and has exploited that trust.”
During the tribunal, Mr Aiston used a witness statement to say: “I deeply regret the action I took and struggle to understand why I agreed to help a desperate client [Client 1] on that occasion when nearly 40 years’ practice told me not to do so.
“All I can say is that I had known the client concerned for over 10 years, trusted his statements as to repayment, when I should not even have entertained his request, and as a result I will rightly be struck from the roll.
“I did not benefit financially or in any other way, personal or through my firm.”
Mr Aison was struck off and forced to pay £175,000 to client 3.
Whilst his intentions may have been pure, the ability to remain professional is pivotal in maintaining regulatory standards and ensuring a firm’s reputation.
Were any of these issues the role of a solicitor? How should client accounts be used by a law firm? Should more be done to ensure the safety of vulnerable clients?
