A major law firm based in Sheffield has become the focus of a significant fraud investigation after its abrupt closure earlier this year. PM Law Ltd, which operated 25 offices across Yorkshire, Cumbria, Berkshire, Derbyshire, and London, is suspected of misappropriating £39.5 million in client funds.
According to the Solicitors Regulation Authority (SRA), the firm's shutdown on February 2 left hundreds of employees without jobs and disrupted tens of thousands of legal cases. The regulator described the alleged scheme as a "sophisticated suspected fraud" involving the "improper removal and misuse" of client money.
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. Many of the former clients faced significant upheaval at a stressful time, so we have been determined to provide as much support as possible."
The investigation represents one of the largest and most complex interventions ever undertaken by the SRA, involving 25,000 emails and letters along with 17,000 inquiries. As of mid-April, the regulator had paid out £9.31 million from its compensation fund to 92 former clients, with an additional £6.8 million distributed from funds recovered from the firm itself.
Former clients have reported being stranded in the middle of property transactions, facing collapsed home purchases, and risking lost deposits due to the firm's sudden disappearance. Employees discovered they had lost their jobs through notices posted on company premises.
The PM Law group, which entered voluntary liquidation in March, consisted of 11 companies operating under more than 30 trading names, including Proddow Mackay, Butterworths Solicitors, and WB Pennine Solicitors. The firm specialized in personal injury, wills, and conveyancing work, employing over 600 staff members at its peak.
Report Fraud, a nationwide service operated by City of London Police, confirmed it had received reports regarding the allegations and was coordinating with the SRA. The BBC's attempts to contact PM Law Ltd for comment have gone unanswered since the firm's collapse.