Second solicitor arrested in fraud probe

Nov 7 2009 by Sophie Doughty, The Journal

Mr Graham was suspended from practising law in October 2008 and is awaiting a date to be fixed for a tribunal hearing that will determine the future of his career.

He built up SFM Legal Services business from a base on Team Valley Trading Estate in Gateshead. The business expanded rapidly after it was formed in 2003 and was best known for work in wealth management, through a company called FM Wealth Management, which no longer trades. The firm has since closed.

A spokesman for the SRA last night confirmed that there had been proceedings against Mr Graham, and that he was suspended. And while he still has a practising certificate it is subject to a number of conditions. A tribunal date has yet to be fixed.

Yesterday’s arrest brings the total number of people arrested in connection with the investigation to 14.

The Journal understands these include Grace Purdie and David Purdie, of Darras Hall, Northumberland, who are directors of one of the companies, Grace Purdie’s business partner Michael Foster, of Houghton-le-Spring, and several employees who worked for the companies at managerial level.

And detectives have warned that nobody suspected of playing a role in the alleged fraud will escape arrest.

Det Chief Insp Jim McAll from the Economic Crime Unit said: “A complex mortgage fraud cannot be perpetrated without the assistance of professionals such as solicitors and surveyors.

“Often these professionals will be acting in good faith, but if we get evidence to suggest that they are complicit then we will treat them as criminals in their own right.”

Hundreds of North East Property Buyers tenants are still waiting to discover if they will lose their homes. A judge at Newcastle County Court is expected to hear test cases next year before reaching a decision on future evictions.