Law Firm Faces $15 Million Closure
A law firm in Stockport faces $15 million in closure costs, administrators have said.
Well established law firm Wolstenholmes, which has been open since 1818, was forced to close by the Solicitors Regulation Authority (SRA), following numerous complaints of dishonesty and broken accounting laws from clients and others.
Five of the Wolstenholmes solicitors had their accounting licenses suspended. So far the SRA has paid out a huge $14 million in compensation but the amount will reach another $1 million yet according to administrators.
The SRA announced 550 applications had to be compensated for following their investigations into the law firm’s dealings. The regulator also said that the closure of the large law firm is likely to affect over 4,000 people negatively.
Most of these were customers who were using the law firm to help them in property purchases. This is what has mounted up to the large costs of closure.
“We have set up the fund to help those customers who are just about to buy a house,” said an SRA spokesman. “We have had to freeze the money the company as we continue to investigate. We are trying to help customers out as soon as possible.”
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Posted by Ray Davidson
on Aug 31 2010. Filed under Business, Featured News.
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