The UK Solicitors Regulation Authority (SRA) has closed down under-fire law firm Axiom Ince amid claims of a misuse of client funds.
In a statement, the SRA said the move is intended to “protect the interests of clients and former clients of the firm”.
It follows the SRA’s closure of the individual practices of three former directors of the firm, Pragnesh Modhwadia, Idnan Liaqat and Shyam Mistry.
The SRA had earlier informed London’s Metropolitan Police of the findings of its probe into claims involving the use of £64m ($77.3m) client funds by Axiom to purchase two law firms out of insolvency in April and property.
One of the firms was Ince & Co, controlled by Ince Group.
It also comes following a continuing exodus of lawyers from the Axiom Ince’s law firm Ince.
The SRA described its move as an “intervention”.
“An intervention means we have closed a firm with immediate effect,” the SRA said.
“We will stop the firm from operating, take possession of all documents and papers held by the firm, and take possession of all money held by the firm (including clients’ money). We are not responsible towards employees or trade creditors of firms that we have intervened in.”
Axiom Ince has been approached for comment. Both Axiom Ince and Ince have closed their websites.
Axiom Ince’s website displays no more than a note reading: “The offices of Axiom Ince have been closed by the Solicitors Regulation Authority.”
News agency Reuters reported that Axiom Ince has filed its intention to appoint administrators to the London High Court.
Rival law firms have quickly taken advantage of the sudden demise of what was once the largest and most prestigious shipping law practice.
Over the past two weeks, around 20 legal professionals have left Ince for rival law firms.
The biggest move involved Ince’s global head of marine projects, Stuart McAlpine, who has joined Stephenson Harwood.
“Transportation and trade, and decarbonisation are two of the firm’s main areas of focus, in which to grow our business and develop our expertise,” said Tammy Samuel, finance practice group leader at Stephenson Harwood.
Watson Farley & Williams has hired former Ince maritime expert and asset finance lawyer Konstantinos (Dinos) Mexias in Athens and five other asset finance lawyers from the firm.
Seven lawyers have left Ince to join Wikborg Rein in London as part of its shipping disputes team.
Michael Volikas, Ian Chetwood and Charles O’Connor have joined Wikborg Rein’s shipping disputes team as consultants.
Amanda Urwin and Sophie Henniker-Major have been appointed senior lawyers, and Jack Maxted and Alice Hoare have joined as associates.
In other moves, Paul Crane has joined Pennington Manches Cooper as a partner, William Chetwood as a senior consultant and Akshay Misra as a managing associate.
Last week, Birketts said it had taken on seven lawyers and employees from Ince.
