The Serious Fraud Office (SFO) has charged the CEO of the collapsed law firm Axiom Ince with fraud, accusing him of the improper use of over £60 million in client funds.
Pragnesh Modhwadia, the firm’s CEO, faces two counts of fraud by abuse of position.
He is charged alongside co-director Shyam Mistry and chief financial officer Muhammad Ali, according to the SFO.
Modhwadia and Mistry are also accused of conspiring to conceal, destroy, or dispose of documents linked to a Solicitors Regulation Authority (SRA) investigation.
The SFO said these charges include chief technology officer Rupesh Karawadra and vice president of IT Jayesh Anjaria.
All five individuals face additional charges of conspiring to mislead the SRA using false documents.
They are scheduled to appear at London’s Westminster Magistrates’ Court on 15 January.
"The collapse of Axiom Ince left thousands of clients exposed to significant losses and hundreds of people out of a job," SFO Director Nick Ephgrave said in a statement.
"The SFO set out to identify and bring those responsible to justice, and today's charging is a significant milestone in achieving that." Axiom Ince, which is unrelated to US legal services provider Axiom Law, collapsed in October 2023.
Shein’s UK sales hit £2.05bn in 2024, up 32.3 per cent year-on-year, driven by younger shoppers.
The retailer benefits from import tax loopholes unavailable to high street rivals.
Faces mounting criticism over labour practices and sustainability as it eyes a London listing.
Tax edge drives growth
Chinese fashion giant Shein is transforming Britain’s online clothing market, capturing a third of women aged 16 to 24 while benefiting from tax breaks unavailable to high street rivals.
The fast-fashion retailer’s UK sales surged 32.3 per cent to £2.05bn in 2024, according to company filings, with pre-tax profits rising to £38.3m from £24.4m the previous year. The growth comes as established players like Asos struggle in an increasingly competitive landscape where young consumers prioritise value above all else.
Shein has partly benefited from a tax break on import duty for goods worth less than £135 sent directly to consumers, The rule lets overseas sellers send low-value goods to the UK tax-free, disadvantaging local businesses.
“The growth of Shein and Temu is a huge factor,” said Tamara Sender Ceron, associate director of fashion retail research at Mintel told The Guardian. “It is particularly successful among younger shoppers. It is also a threat to other fashion retailers such as Primark and H&M because of its ultra-low price model that nobody can compete with. It’s changed the market.
"The market dynamics reflect broader shifts in consumer behaviour. Online fashion sales reached £34bn last year, up 3 per cent, according to Mintel, but shoppers have become more cautious as disposable incomes shrink, and fashion competes with holidays, festivals, and streaming services for wallet share.
Scrutiny builds
Despite its commercial success, Shein faces mounting scrutiny. The company filed initial paperwork last June for a potential London Stock Exchange listing, but critics question its labour practices and environmental impact.
"Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains,” said Peter Frankental, economic affairs programme director at Amnesty International UK to BBC.
The “de minimis” rule has drawn renewed attention after US President Donald Trump scrapped a similar measure during his trade war with China.
Shein’s UK operation now employs 91 people across offices in Kings Cross and Manchester, focusing primarily on local market expertise.
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