Solicitor under investigation over allegations of dishonesty

Raymond Ridley’s firm Ridley’s Solicitors has been closed by regulators after allegations of financial misconduct involving hundreds of thousands of pounds of clients’ money.

The investigation by the Solicitors Regulation Authority (SRA) dates back to 1992, when the firm was founded. There are now fears that former clients who used the firm to sell their homes could be liable to pay stamp duty which they thought had already been paid.

An industry insider last night said at least three former clients have been contacted by Her Majesty’s Revenue and Customs (HMRC) over unpaid stamp duty – in some cases relating to sales from more than three years ago.

The investigation into the firm, based in Corn Street, Witney, examine the thousands of transactions Mr Ridley handled.

Once it completes its investigation, the SRA will decide if any wrongdoing has taken place.

In a statement, the SRA said it had intervened to close Ridley’s Solicitors on November 4 and was currently carrying out a forensic audit.

A spokesman said: “The committee has reason to suspect dishonesty on the part of Mr Ridley in his practice as a solicitor.”

The SRA also said there were grounds to suspect Mr Ridley had failed to comply with Solicitors’ Accounts Rules, the Solicitors’ Practice Rules and the Solicitors’ Code of Conduct.

Solicitor David Newcombe, appointed by the SRA, was instructed to return files held by Ridley’s to clients after the practice was emptied of 300 boxes of paperwork by forensic accountants.

The SRA is now dealing with 23 compensation claims from clients who say they have lost money, but said more claims could be made.

Witney couple Rosie and Terry Buckland have been repaid from the SRA’s compensation fund after making a successful application.

They used Ridley’s to release equity from their home and downsize to a smaller property, but reported Mr Ridley to the police when £231,000 did not arrive in their bank account as expected.

They said they were contacted by the HMRC who said they still owed more than £2,000 in stamp duty which they thought had been paid.

Referring to when he checked his bank account, Mr Buckland said: “I had this real, horrible sinking feeling that it had all gone a bit pear-shaped.

“It was really, really upsetting and really stressful.”

Mr Ridley, 57, was arrested on November 11 last year on suspicion of fraud and theft, but he was later released without charge. Yesterday a police spokesman said he faced no further police action against him.

The SRA investigation is still ongoing. If any misconduct is found, it could fine Mr Ridley £2,000, formally reprimand him or refer the matter to the Solicitors Disciplinary Tribunal where he could face an unlimited fine and be struck off.

If the SRA investigation finds no proof of misconduct it will remove the suspension of his certificate to practice and he will be able to continue his business.

A spokesman for the SRA said compensation payouts did not imply guilt.

A spokesman for HMRC said: “The purchaser is liable to pay Stamp Duty Land Tax on a land transaction even if he or she has entrusted his affairs to an agent.”

He said anyone worried should contact the authority for more information.

When the Oxford Mail approached Mr Ridley at home in Milton-Under-Wychwood he declined to comment.

To contact the SRA log on to www.sra.org.uk

STAMP DUTY

STAMP Duty Land Tax is payable on the purchase or transfer of property or land in the UK.

On March 25, 2010, first-time buyers were given a stamp duty holiday for residential properties sold for less than £250,000, but this expires on March 24.

Anyone who buys a residential property for less than £125,000 is exempt from stamp duty.

There is a one per cent stamp duty tax on properties sold for £125,000-£250,000 and a three per cent tax on homes sold for between £250,000 and £500,000.

Buyers who pay between £500,000 and £1m pay four per cent stamp duty and properties over £1m are taxed at five per cent.