Axiom Ince Limited - Case Update

The joint administrators of Axiom Ince have revealed that, ironically, one of the factors leading up to the firm’s collapse was its failure to properly integrate operations following its pre-pack purchases of various other distressed law firms.

In their proposals to creditors, joint administrators Neil Bennett, Alex Cadwallader and Andrew Poxon of Leonard Curtis detail how they were appointed in October, after the SRA had already shut down the firm and many of its employees had already left.

According to the joint administrators, the legal behemoth grew its trade from the purchase of law firms which had financial issues, including most recently Ince and Plexus. However, following the purchases, little work was done to consolidate the various IT systems across the separate areas of the business, which led to complexities in continuing to trade and manage the firm.

The joint administrators also reveal that the SRA intervened based on suspected “dishonesty and breach of the Solicitors’ Accounts Rules” by Mr Modhwadia, the firm’s global CEO, and others. A shortfall in the firm’s client account was discovered, which led directors to issue proceedings against Mr Modhwadia. The firm currently holds a £64 million freezing order against his assets, but the quantum of the missing client funds is not currently known.

The SRA are continuing to investigate the matter, and the joint administrators have declined to provide further information so as to not prejudice the ongoing investigations.

The joint administrators have been assisted by Devonshires and LC Legal. Their proposals can be found HERE.