By Phil Coleman

Last updated 13:12, Thursday, 21 August 2008

CUSTOMERS of a Carlisle law firm which has been closed down following allegations of financial irregularities have been told: “There’s no reason to panic.”

The Solicitor’s Regulation Authority (SRA) confirmed yesterday that the Lowther Street practice of Pauline L Butler is the subject of an official investigation.

The allegation has come after a recent SRA inspection of the business.

A spokesman for the authority said yesterday that clients are now being advised to instruct alternative solicitors but he remained confident that there is no prospect of them losing money.

The SRA is allowed to intervene in law firms where there is a suspicion of serious professional misconduct.

Mrs Butler’s SRA certificate of legal practice has been suspended while investigators continue their work.

In the meantime, the authority has appointed the Durham-based law firm Blackett, Hart and Pratt to act on its behalf. They are in the process of writing to Mrs Butler’s clients and advising them to instruct other solicitors.

SRA spokesman Geoffrey Negus said: “The SRA closed down her firm on August 19 because we have extremely serious concerns about financial irregularities.

“That is as much as we can say at this stage but things will become clearer later.

“There is nothing proven yet, but we are allowed to intervene on the grounds of suspicion only.

“We have appointed another firm in Durham to look after the interests of her clients. Clients should not panic.

“If money has gone astray it will either be dealt with by the solicitor’s indemnity insurance or if that doesn’t work there is the SRA compensation fund. I’m confident that clients will not lose money as a result of this intervention.”

“That’s one of the guarantees that you get by going to a regulated solicitor.”

When the authority intervenes in a law firm, its role is wind down the business in an orderly fashion and also to deal with any disciplinary matters, said Mr Negus.

Mr Negus said that it was likely that Mrs Butler, 51, will be referred to the Solicitors’ Disciplinary Tribunal.

Mrs Butler began her Carlisle firm in 1993. She has specialised in family law, but also dealt with personal injury claims, wills, probate, employment law, and residential property conveyancing.

She qualified as a lawyer in January, 1982. Blackett, Hart and Pratt can be contacted on 0191 3840840.