Money used to refurbish law firm’s offices
A personal injury solicitor who sold unregulated after-the-event insurance to his clients and used the money to refurbish his offices has been ordered to quit.
Godfrey Morgan, who founded Norwich-based firm GMS Law, was barred from the legal profession after a five-year investigation by the Solicitors Regulation Authority (SRA).
Five years ago, Morgan started an insurance firm, called GIRY or NIC, which was not regulated by the FSA and operated out of Panama.
The SRA found 237 policies that were not “proper insurance” and some clients had been charged additional premium.
It also concluded the firm did not have “the hallmarks of being a reputable insurer”.
The investigation found that GIRY had sold policies to cover personal injury and medical negligence with £5,000 excesses.
When the SRA questioned why these were so high, Morgan argued he thought it was a “good idea” and that it “makes the client more cautious”.
According to recently released documents, Morgan admitted eight charges following a disciplinary tribunal in April.
The SRA ordered him to be removed from the roll of solicitors for six years and to pay £45,000 towards the investigation costs.
Morgan set up the company with £467,000, about £240,000 of which was loaned back to his law firm.