A solicitor at an ABS was rebuked by the SRA for multiple compliance failures.
- Chukwuemeka Mmegwa was deemed unsuitable for managerial or supervisory roles.
- The SRA uncovered numerous breaches following a forensic investigation.
- Mr. Mmegwa failed to adequately address client complaints and financial discrepancies.
- The solicitor’s actions led to the closure of the law firm in December 2023.
A solicitor at an alternative business structure (ABS) has been rebuked by the Solicitors Regulation Authority (SRA) due to a series of compliance failures. Chukwuemeka Mmegwa, who held all compliance roles, was found unsuitable for managerial or supervisory positions. Consequently, conditions have been imposed on his future practice to prevent him from assuming such roles.
Between July 2014 and March 2023, Mr. Mmegwa was associated with Virgo Consultancy Services, an ABS linked to Virgo People talent agency. The firm provided visa and additional services for performers, entertainers, and sportspeople. Despite the firm’s owner, referred to as ‘Mrs A’, Mr. Mmegwa served as a director from May 2019 until the firm ceased its operations.
The SRA intervened in December 2023 due to significant compliance failures, largely attributed to Mr. Mmegwa. He occupied several critical roles: head of legal practice, head of finance, anti-money laundering officer, and others. His responsibilities included handling complaints, supervising, and training, yet multiple breaches were uncovered during a forensic investigation.
The catalyst for the investigation was a report by ‘Mrs A’ concerning a former employee who misled clients about case progress. This report, alongside ten others, prompted a detailed review, revealing numerous breaches of account rules. Mr. Mmegwa notably failed to provide requested information to confirm the firm’s financial integrity, as per the forensic investigation officer.
The SRA documented Mr. Mmegwa’s repeated inability to supply necessary documentation, even after twelve requests and a statutory production notice. He neglected to submit qualified accountant’s reports on time, which highlighted significant account rule breaches and client account deficiencies.
Moreover, Mr. Mmegwa did not resolve four client complaints adequately, leading to criticism from the Legal Ombudsman. He admitted to multiple breaches, attributed partly to the actions of a former colleague, reduced staffing, limited resources, and pandemic impacts. The SRA acknowledged some level of shared responsibility, particularly concerning Mrs. A’s role.
The SRA deemed a written rebuke appropriate, highlighting that the issues did not directly affect Mr. Mmegwa’s honesty or integrity in his practising roles outside of managerial responsibilities. Further controls are placed on his practising certificate to reduce the risk of recurrence, barring him from sole practice or roles involving partnership or compliance.
The SRA’s actions underscore the importance of robust compliance frameworks within legal practices to avert regulatory breaches.
