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Former Fladgate corporate head Nicolas Greenstone has been reprimanded by the Solicitors Regulation Authority (SRA) for actions that led to a £27m fraud.
Greenstone, who left Fladgate in 2003 and who now works for Merchant Capital, was admonished as, although his conduct was not fraudulent, it allowed others to implement a multimillion-pound deception.
While ;at ;Fladgate Greenstone acted for Jersey company Orb, which was being investigated by the Serious Fraud Office after millions went missing from dotcom Izodia. The cash allegedly had been transferred to an Orb subsidiary.
Prior to this Greenstone signed a pro-forma that led to Izodia director Dr Gerald Smith fraudulently transferring money from the dotcom to Orb.
Greenstone was reprimanded as he did not have the authority to sign the document because he was not the company secretary.
The case was referred to Legal Services Ombudsman Zahida Manzoor after a shareholder felt that the SRA did not go far enough. Manzoor did not believe that further action should be taken.