Ex-DWF paralegal rebuked over role in failed development scheme payment errors

A former senior paralegal at DWF has been rebuked by the SRA over the firm's improper release of client funds totalling £2.6 million in connection with a failed off-plan property development.

Shaun Sloyan, who worked in DWF’s Manchester plot sales team until 2021, was also ordered to pay £600 in costs after admitting to requesting the premature release of £1.85 million in construction instalments to a developer client.

Background

The sanction follows a wider investigation into DWF’s role on "Development C" - a now-failed residential project where funds were released to the developer before key contractual milestones were met.

Between October 2019 and November 2022, DWF transferred almost £2.6 million in deposit and construction instalments to a special purpose vehicle connected to its client, despite the required deposit warranty insurance and supervisor’s certificates never being provided.

Sloyan had day-to-day conduct of the plot sales and initiated the payment requests, which were then authorised by real estate partner Mark Shepherd. The firm later self-reported the issue and acknowledged that the funds were released in breach of the sale contracts and of SRA rules. At the time of discovery, aerial images showed the site was still bare land.

Shepherd, the client partner, was fined £14,000 by the Solicitors Disciplinary Tribunal (SDT) earlier this year. DWF ultimately repaid affected buyers after claiming under its professional indemnity insurance, with the firm paying an excess of £1.55 million.

DWF has since exited the plot sales market.

What they said

In its decision notice, the SRA said Sloyan "had simply followed the process which applied to other developments" without checking the specific contractual terms for Development C. It found that his actions "caused a shortfall on the client account" and the "direct impact on over 40 buyers" had "risked undermining public confidence in the profession."

While disciplinary action was not taken internally at DWF, the SRA concluded that a formal rebuke was a proportionate outcome given the scale of the error and the impact on buyers.

Editor's note: The SDT's judgment in relation to Mark Shepherd suggests the amounts involved were denominated in euros, while the SRA's rebuke uses pounds.