London’s Metropolitan Police is investigating legal firm Axiom Ince after it was alleged that client funds were used to acquire property and two law firms from insolvency, including Ince & Co.
Ince & Co was acquired from insolvency by Axiom DWFM in April this year.
The involvement of the police follows an investigation by the Solicitors Regulation Authority (SRA) which was alerted to a £64m ($78m) hole in Axiom’s client fund.
The money is suspected of being used to fund acquisitions.
The Metropolitan Police said: “Detectives from the Met’s Specialist Crime Command have launched an investigation and enquiries are ongoing.”
The SRA has suspended Axiom Ince director Pragnesh Modhwadia and two other senior lawyers as a result of its investigation.
The other transaction that is the subject of investigation is the acquisition of Plexus Legal.
The episode appears to mark another unfortunate chapter in the recent history of what was once one of shipping’s largest and oldest law firms.
Ince Group fell into insolvency for a second time in April and was soon snapped up by Axiom DWFM.
The takeover offered an opportunity for a fresh start for the firm.
At the time of the takeover, managing partner Jennette Newman said Ince & Co was “committed to reinforcing the firm’s reputation of providing complex legal services to corporate, commercial and high-net-worth clients in our core sectors”.
Recent developments at Axiom Ince seem to have prompted an exodus of lawyers.
TradeWinds reported this week that seven marine and insurance legal experts had left to join UK firm Birketts.
Axiom Ince has been approached for comment.
