Hansells solicitors in Norfolk fined £121k by regulator

Hansells, which is based in Norwich's Tombland, has been issued with the penalty by the Solicitors Regulation Authority (SRA) in a case which has its roots dating more than two decades.

Some of the beneficiaries were elderly and died before they could be properly paid.

The SRA, which regulates law firms, said Hansells had "failed to uphold public trust and confidence in the profession" and said its "conduct continued even after it was known to be improper".

It fined the firm £120,885 - 3.2pc of its turnover - and ordered it to pay costs of £1,350.

Roger Holden - the solicitor who acted as administrator of the estate, who is now Hansells chairman and a former president of the Norfolk and Norwich Law Society - was also fined £3,223, equivalent to 32% of his gross annual income, and ordered him to pay costs of £1,350.

The SRA said there had been a conflict of interest in relation to his handling of the estate.

Roger Holden, Hansells chairman and former president of the Norfolk and Norwich Law Society (Image: Antony Kelly)

WHAT HAPPENED?

The firm's predecessor, Hansells Solicitors, had been instructed to deal with the administration of an estate in 2001.

But, due to a mistake in the interpretation of the rules of intestacy - when a person dies without a valid will - it distributed the estate incorrectly.

The firm paid incorrect sums to beneficiaries, meaning client money had been improperly withdrawn from the client account.

When the firm became a licensed body in 2014, this meant it had a shortfall on its client account of almost £22,000, which was not replaced until 2022, following a qualified accountant's report.

Between this time, from 2014 to 2022, the firm - based in Cambridge House, near the entrance to the Cathedral Close - failed to replace client money which had been wrongly withdrawn from the client account.

Hansells is based at Cambridge House, in Tombland, Norwich (Image: Google Maps)

WHAT DID THE REGULATOR SAY?

Although the breach was eventually rectified, the SRA said it "persisted for longer than was reasonable and only when prompted".

"Any lesser sanction would not provide a credible deterrent to the firm and others," the regulator added.

"The firm's conduct failed to uphold public trust and confidence in the profession.

"The conduct continued even after it was known to be improper."

In mitigation, the SRA noted that there were no findings of dishonesty or a lack of integrity, and the firm had made some admissions, “albeit only once the matter had been referred to a decision maker”.

The regulatory also said that Mr Holden had been appointed as administrator of the estate in 2004, “in circumstances where his interests as a partner at the firm conflicted with the interests of the estate”.

He continued to administer the estate until July 2022.

In mitigation, the SRA said, Mr Holden had a clear regulatory history, there were no findings of dishonesty or a lack of integrity, and he made “some admissions” as to his conduct.

Hansells' head office is in Norwich, with offices across Norfolk in Aylsham, Cromer and North Walsham.

A Hansells spokesperson said: “We, at Hansells, extend our sincere apologies for the historical mishandling of an estate matter.

"We are committed to ensuring such errors do not recur, and to maintaining the trust and confidence of our clients and the public through exemplary service and adherence to the highest standards of professionalism.

"Indeed, we have bolstered our compliance support both internally and externally, and we have already introduced a buddying system, promoted collaboration amongst colleagues and undertake regular reviews. 

"In addition, we are now working towards obtaining Lexel accreditation, which is the Law Society’s legal practice quality mark for client care, compliance and practice management. 

"We are excited about the future direction of the firm, which includes further training at all levels, as well as the plan to extend the team and offer more job opportunities.”

HANSELLS SOLICITOR JAILED

It is not the first time Hansells has landed in hot water.

Last year, Hugh Lansdell, a former senior partner at the firm, was jailed for stealing almost £2m from clients' accounts to chase winnings he was duped into believing he had won as part of a Spanish lottery. 

The 74-year-old took a total of £1,963,659.44 between 2015 and 2017 after being convinced he had won the lottery and needed the money to secure his winnings. 

Hugh Lansdell, pictured in 2014 (Image: Newsquest)

Norwich Crown Court heard the devout Christian had wanted to donate the money to his local church so it could be renovated, as well as establish a hostel in Norwich.

He believed "God had answered his prayers" after he received a letter about an £825,000 lottery win. 

Lansdell was informed that in order to release the funds he had to himself make payments to access the winnings he believed he was entitled to. 

He took £1.5m from his clients and £350,000 from two charities where he was a trustee, before he was suspended from Hansells and struck off as a solicitor in 2019.