Devon residents warned after £3.5million from deceased estates allegedly syphoned by firm director
Unregulated legal firm accused of misusing funds meant for beneficiaries
Devon residents have been warned after claims that £3.5million from deceased estates awaiting distribution was syphoned off by a director of an unregulated legal firm.
Devon Trading Standards, part of Devon County Council, said the money was allegedly taken for the director’s own businesses, according to a witness statement from the firm’s finance manager.
The case has been referred to the Competition and Markets Authority (CMA), which oversees unregulated legal practices, for further investigation.
“This £3.5million is entirely from deceased estates awaiting distribution to the legal beneficiaries,” Alex Fry, Heart of the South West Trading Standards head of operations, said.
“It was not the property of the director or the firm to withdraw from and potentially fraudulent if any money was removed from this account for any other purpose.”
How to protect yourself
Consumers have been encouraged to conduct checks if contacted as beneficiaries from a deceased estate, said Mr Fry.
“This money is genuinely meant for distribution from Wills and Trusts but sometimes firms struggle to gain trust to hand over what is due to people so the money sits in these unregulated legal firms’ accounts and unscrupulous businesses can be tempted to withdraw the funds illegally.”
Mr Fry said beneficiaries concerned about their finances can seek reassurance from organisations such as the Financial Conduct Authority or Citizens Advice.