£50,000 fine for ‘reckless’ Blackburn solicitor

A Blackburn-based lawyer who was referred to the Solicitors Disciplinary Tribunal over allegations relating to £1.6m of investment fund cash has been fined £50,000.

It had been alleged that the solicitor used £1.6m received from the investment fund “in circumstances in which it was improper to do so”.

It also told the hearing that she had “failed to run the firm effectively in accordance with proper governance and sound financial and risk management principles.”

The allegations related to the Axiom Fund, which the tribunal heard was set up to provide funding to UK law firms to conduct legal cases. Investors had put more than £100m into the fund by 2012.

It had been alleged that she knew or was reckless to the fact the firm had not complied with the terms of a Litigation Funding Agreement.

The tribunal found that Ms Virmani had been “reckless” but her actions had not been deliberate.