A ROSSENDALE solicitor was the figurehead in a sham legal firm set up to evade Law Society regulations, a tribunal heard.

Michael Tracey, 46, of Meadows Avenue, Haslingden, was one of three solicitors behind the Bradford company.

Mr Tracey, along with Sardar Ahmed Qadri, 46, and Aurangzeb Iqbal, 43, ran Churchills Solicitor's, in Eldon Place, Manningham Lane, Bradford, when it was probed by Law Society accountants in February 2002.

All three face a number of disciplinary allegations, which include running a partnership designed to circumvent conditions imposed on Mr Iqbal's practising certificate, and accounts not being properly written up.

All three are appearing before the tribunal in London. Mr Tracey, Mr Qadri, of Ellesmere Park, Eccles, Manchester, and Mr Iqbal, of Pudsey, Leeds, are representing themselves. Stephen Battersby, for the Law Society, said it would not have approved of Mr Iqbal running a company so his colleagues tried to give the impression he had no hand in running the business.

Mr Battersby told the tribunal that the "firm was a sham partnership with Mr Tracey as figurehead to facilitate the involvement of Mr Iqbal," who was subject to conditions on his practising certificate.

Mr Battersby said the accountant's investigation revealed that the accounts were not properly written up. However, the Law Society auditors managed to establish that there was in fact a cash shortage of more than £106,000.

One of the other allegations was that the firm avoided paying VAT and also used notepaper which was misleading and confusing as to the status of Mr Tracey, Mr Qadri and Mr Iqbal.

Such was the situation that although Mr Tracey was supposedly the sole principle he did not know what was going on in the firm.

Mr Tracey had also played no part in the merger between Churchills and a Leeds-based immigration consultancy called Ali and Co.

The tribunal heard evidence from investigating accountant Adrian Smith, who took the tribunal in detail through his report.

Under cross-examination from Mr Iqbal, Mr Smith said: "Mr Qadri and Mr Tracey made it clear that Mr Iqbal had a controlling influence on the firm."

Proceeding