The High Court has ruled that the Solicitors Regulation Authority (SRA) was justified in shutting down a Manchester law firm due to suspicions of dishonesty by its owner. The court found that the SRA had discharged the burden of proof in the case against IPS Law LLP.
The firm’s senior partner, Christopher Farnell, a sports lawyer, was alleged to have been involved in “dubious investment schemes” where people entrusted large sums of money to the practice. Farnell was also suspended by the SRA.
According to the judgment, Farnell sent emails to investors telling them that funds remained in the firm’s client account when, in fact, payments had been made to third parties. In one case, an individual had made payments to invest in a football club but never received any shares.
Farnell argued in court that there were no grounds for finding rule breaches or suspecting dishonesty, and the intervention should be withdrawn as it was disproportionate. His representative criticized the SRA for not paying sufficient attention to the terms of the relevant engagement letters.
The SRA submitted that even if the matter started as an innocuous mistake, it was never corrected. Farnell continued to convey the impression that funds were coming back imminently, while funds were still being paid out of the account.
In one instance, £1m was received into the client account, and Farnell confirmed that the money was still there. However, by that time, £385,000 had already been paid out of the account.
The judge concluded that the investment schemes were dubious and that Farnell should not have been involved. The continuing risk to investors, who still had not received their money back, justified the intervention. This decision highlights the need for lawsuits threat to be tackled and for regulatory bodies to take action against dishonest practices.
The judge also noted that the delay in the SRA‘s investigation, which was reported as far back as July 2023 but only resulted in a forensic investigation report in August 2025, was difficult to understand, unless it was due to a lack of resources. They questioned the effectiveness of the investigation process.
Since the judgment, a different court has wound up IPS Law over outstanding six-figure debts owed to Global Sports Data and Technology Limited, a consultancy headed by Jason Dunlop and Russell Slade.
The SRA‘s decision to shut down IPS Law has significant implications for the legal profession, highlighting the importance of future of law and the need for law firms to maintain the highest standards of integrity and transparency, which is also a key aspect of key legislation being passed by Congress.
