Former Kennedys partner fined £27k in last minute settlement

A former Kennedys real estate partner has settled his case with the legal watchdog moments before a hearing was set – but a case will still proceed against the firm’s chief risk officer.

The Solicitors Regulation Authority (SRA) referred both Dennis Ko and Andrew Coates to a Tribunal in April over allegations they breached industry regulations.

Ko, now a partner at BDB Pitmans, was at Kennedys between 2014 to 2020. Coates, a Kennedys lifer having spent nearly 40 years at the firm, is its chief risk officer.

Both were set for a hearing before the Solicitor Disciplinary Tribunal (SDT) commencing on Monday and set to run until next Tuesday.

The hearing started an hour later than scheduled as Ko’s legal representatives were in settlement talks with the SRA.

The chair of the Tribunal noted that an agreement between those parties was reached, with Ko fined £27,500 in addition to £25,000 for legal costs of application and investigation.

The chair noted the case still goes ahead against Coates.

The case stems back to 2017 when Ko acted for Grosvenor Property as it was seeking to develop student accommodation.

However, as detailed by the SRA’s barrister to the Tribunal, the client was using an investment scheme which the regulator had issued warning notices about in the same year.

It was detailed when concerns were raised at the firm by another employee, Coates is alleged to have allowed Kennedys to continue to act for the client and allowed the scheme to continue.

It was reported in 2021 the Insolvency Service banned two directors of Grosvenor Property Developers from holding company office for 25 years after they “misappropriate investor deposits of more than £6.5m”.

The allegations against Coates before the Tribunal are yet to be proven.

The SRA, Ko and Coates were approached for a comment.