Does solicitor-facilitated investment fraud threaten to undermine confidence in the profession, asks Christopher Burt
The professionalisation of lawyers can be traced back to the 13th century when practitioners of ecclesiastical law faced scrutiny from the church. Increased regulation led to professionalism, which has evolved to a point where the law is a trusted (if not universally liked) profession. Unfortunately, that trust is sometimes misplaced.
In October 1997 the Law Society Fraud Intelligence Office issued a warning on solicitor facilitated investment fraud. Solicitors were advised that ‘fraudulent investment schemes are on the increase’ and that they ‘should exercise extreme caution if approached by individuals promoting such transactions’. Further warnings have since been issued and the Solicitors Regulation Authority (SRA) has intervened and taken disciplinary action. After peaking in the early 2000s, the scourge of solicitor facilitated investment fraud has once again started to increase.
Investment fraud is a broad term which includes some of the most notorious scam investments such as diamonds, fine wine and art. It also encompasses trading frauds (such as carbon credits and shares), land banking, and ostensibly complex bank instruments
