City firms watch as A&O risks regulator inquiry

Allen & Overy has avoided being reported to the UK's Attorney General but could find that it is the subject of scrutiny by the Solicitors Regulation Authority (SRA).

Allen & Overy may be subjected to SRA scrutiny. mdgn

The decisions on whether to inquire into the firm’s conduct or not are in relation to its representation of Victor Dahdaleh, a Bahraini who has been on trial at Southwark Crown Court in a Serious Fraud Office prosecution. Mr Dahdaleh was previously represented by Allen & Overy. Two of the firm’s lawyers were accused by the prosecutors of ‘putting substantial pressure’ on a prosecution witness. 

Awaiting the outcome

While the judge in the trial has now decided not to refer the lawyers to the Attorney General - who investigates contempt of court claims - the judge is still deciding whether or not to refer them to the SRA.  A&O reported itself to the SRA in  May and the SRA says it will await the outcome of this trial ‘before we progress’. The case is seen as having implications for the growing number of law firms now practising in the area of white collar crime.

Discourteous

Another top firm involved in this case, Akin Gump Strauss Hauer & Feld, has escaped formal censure. The judge in this trial, Judge Nicholas Loraine-Smith, has said that while a partner in the US firm was discourteous - in not giving evidence in the trial, as had been expected - this did not amount to a case of serious misconduct. Source: Financial Times

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