The former managing partner of law firm Axiom Ince is alleged to have used millions of pounds of client money to buy a portfolio of commercial properties.
At a court hearing yesterday (12 September), a lawyer for the law firm said Pragnesh Modhwadia appears to have “misappropriated” almost £65m from the firm’s client account.
A “significant proportion” of that was used by companies connected to Modhwadia to buy and develop a portfolio of commercial properties, barrister Simon Passfield, acting for Axiom Ince, said in legal papers.
Last month, Modhwadia was one of three Axiom Ince directors to be suspended by regulator the Solicitors Regulation Authority, pending an investigation.
Separately, Axiom Ince is suing Modhwadia for breach of fiduciary duty.
Axiom bought Ince earlier this year after the firm ran into financial difficulties. It also rescued another firm, Plexus Law. At yesterday’s hearing, Passfield said the misappropriated funds had also been used to buy other firms.
The judge made an order banning the sale of the properties. He extended a freezing order on Modhwadia from £57m to £64m.
To send feedback, e-mail newsdesk@eg.co.uk or tweet @EGPropertyNews
